Week 3 Writing Project - Part 3

10

Customer and Labor Intensiveness Within Business Operations

Valery Salazar

Keiser University

Data Analysis for Accounting

Dr. Wendy Achiilles

October 29, 2022

1. Determine the number of cash registers required.

From the information given, it can be determined that the average period it takes to place and receive an order is 1.25 minutes. This means that the restaurant can serve approximately 80 customers per hour. To accommodate 500 customers per hour, the restaurant would need at least six cash registers.

The number of cash registers required can be determined using the following equation:

For Fat Charlie's, this would be:

500 * 1.25 = 625

625/60(1-2) = 13.021 = 13 registers

500/4 = 125

13.0208/4 = 3.255 = 3 registers

From the above calculations, it can be seen that Fat Charlie's would need approximately 3 cash registers to accommodate their 500 customers per hour.

3. Assuming ideal conditions, what is the maximum capacity of process B annually?

Assuming key ideal conditions, with maxim. capacity of process B could be 2,880 jobs annually. This is because two employees are working in process B, each working 8 hours a day, 5 days a week, and 250 days per annually.

7.5 x 60 = 450 minutes

Process B = 450/15 = 30 days

Based on the calculation, it is recommended that process B be used to maximize the capacity of the Pre-Cast Shop. This is because process B can produce 2,880 jobs annually, while process A can only produce 1,000 jobs annually (Sima et al. 2020).

4. If Rocky's is primarily interested in providing low-cost customers, which process should he implement?

Process A has a single worker do both the job's initial planning and its first casting. Using this method, a skilled worker may finish around 20 tasks each day.

Process B requires a team of 2. Setup is handled by one person, while pre-casting is completed by another. Pre-casting may be done in parallel with job setup, however a task must be finished before the pre-cast machine can begin processing the next project. With some experience, the second procedure takes an average of just 15 minutes of hands-on time in pre-casting and 8 minutes of setup time (Grewal, & Roggeveen, 2020).

Assume an eight-hour workday, five days a week, and two hundred and fifty working days a year. The two employees in process B can start their shifts at different times.

Process A will require 20 hours of labor per day, while Process B will require 16 hours of labor per day. Process B will require an additional investment in a labor of $4 per day. Based on these two factors, Process A is the more cost-effective option.

References

Grewal, D., & Roggeveen, A. L. (2020). Understanding retail experiences and customer journey management.  Journal of Retailing,  96(1), 3-8. https://www.sciencedirect.com/science/article/pii/S0022435920300051

Sima, V., Gheorghe, I. G., Subić, J., & Nancu, D. (2020). Influences of the industry 4.0 revolution on the human capital development and consumer behavior: A systematic review.  Sustainability,  12(10), 4035. https://www.mdpi.com/2071-1050/12/10/4035/pdf?version=1589469726