WRITTEN ANALYSIS AND COMMUNICATION (WAC)
NISHANT GADIA FSB-1 26TH August 14
SANDS CORPORATION LETTER OF TRANSMITTAL
August 9, 1961 President, Sands Corporation Clairmont, USA
Dear Sir, Enclosed is the report on “The Establishment of New plant”. This report examines the problems, options available and the different scenarios dealt with. Various factors have been taken into consideration for an attempt to take a wiser decision.
I hope you find this report satisfactory and help you in taking wiser decision.
Regards Vice President Manufacturing
Sands Corporation was established in 1941 with an aim to manufacture range of parts for the aircrafts, automotive and agriculture equipment …show more content…
The land is adequate enough to set up the plant and function effectively. Since the plant is new and can’t be decentralized in the first year itself because it will require assistance from the managers and the higher authorities so nearness to the plant and executive office is favorable. Higher resale value of the land in future. b) AVAILABILITY OF LABOR & LABOR COST: In Kimberly Street the availability of labor is in abundance (U.S Employment Survey) The availability of skilled labor is also in abundance approximately 1000 skilled labor is available. The plant also requires semi-skilled and unskilled labors which are also in surplus, 4000 Semi-Skilled, 6600 Unskilled including males and females (2000 semi-skilled, 3300 unskilled males & 2000 semi-skilled, 3300 unskilled females). The cost of labor is higher c) OPERATING COST: The cost of electricity, gas and water is low due to industrial area. This leads to low operating costs. Electricity- $0.101 a kilowatt hour, Gas-$0.46 a thousand cubic feet, water$0.11 a thousand gallons.
d) LABOR UNION: In Kimberly Street the labors have formed a union and they sometimes affect the productivity of the plant. 2. HAMPTON a) LAND: In Hampton the cost of 10 acre land is $20,000. The land is more than sufficient and enough to setup the plant. Since the plant is away from the main plant and it cannot be decentralized in the initial year itself, managing of the