Danshui assembling computer hard drives on a contract that was fulfilled at the end of May 2010, although the assembly hard drives was different with assembly of Iphone, Danshui was confident that its workers would adapt to the new assembly tasks and that it could hire and train the additional workers as needed. But in fact, Danshui didn’t manage employee property. The workers showed low efficiency in assembly Iphone with produced lower quantity than budgeted which is 180,000 units instead of 200,000 units. Other than that, Danshui couldn’t hire enough qualified labor to get production up to 200,000 units even though they raised wages by 30% because of Foxconn starting pay by 35% to the labors. In addition, Danshui operation department keep having flash memories damage problem, there were around 1,000 flash memories damage in August. It’s shown that Danshui’s labors are not enough skill to assembly Iphone. We suggest that Wentao Chen could organize more training program for labors to solve the problem of damage of flash memories because of labors might lack of skill in assembly Iphone since they are more familiar in assembly computer hard drive before on contract with Apple. In order to improve the skill of labor in assembly Iphone so that will be decrease the number of damage of flash memories, and the decreasing of number of damage will be decrease the cost of assembly and increase the revenue. In addition, for the problem of couldn’t hire enough qualified labors to get the production of 200,000 units per month even though Danshui had raised the wages up to 30%. In order to solve this problem, we would like to suggest Wentao Chen to apply the intrinsic need of labor.
For example, Danshui can set up a Childcare centre for take care the children of labors or provide free meal for those having over time workers and their children who in Childcare Centre. For example, Maybank has undergone various business transformations in the last four years to enhance their service offerings to their customers, improve operational efficiency and to focus efforts on their most valuable asset – their people. Currently, Maybank has put in place a plan to build a childcare centre to be used by employees during emergency situations. Parents who are faced with challenges in securing childcare services are able to utilize the centre for a temporary period of time whilst they source for alternative childcare services and facilities. The centre will provide parents with a safe environment, high-quality care as well as provide fun activities for their children when their regular care provider is unavailable or during emergency situations. The childcare centre is currently under construction and targets to open its doors to employees by the last quarter of 2013. We believe it’s can fulfill the satisfaction of employees and increase the retention of employees, in the other hand Danshui also can attract labor to work in Danshui without raising wages. Other than that, Danshui can improve the productivity of labors to get the production of 200,000 units with their high satisfaction to Danshui. Wentao Chen could help Danshui to get the production of 200,000 units without improve skill of labor or improve the productivity by satisfied the labors, he could using “outsourcing” to get 200,000 units production to reach the deal with Apple. Danshui can outsource to other similar assembly manufacturer for 20,000 units to fulfill the Apple contract.