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ksmiley | 12 years ago

Perhaps Kellogg's limiting factor was not their salary budget, but maximum occupancy on their assembly lines. Switching from eight hours to six means you can hire a whole additional shift of workers, assuming the machines run 24 hours a day.

If 6 hour workers are 112.5% as productive per hour as 8 hour workers, then this turns out to be a good deal for Kellogg's.

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jotm|12 years ago

Oh, that makes sense!