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striker101Week 7 Homework 1
Week Seven Homework Assignment
Your Name Here
DeVry University Homework Questions 1 thru 5- Tricky Nicky’s Carpet Cleaning Co
1. How much does the re-cleaning cost Nicky per year? Show all mathematical calculations.
1 person cleans 6 carpets per day. Multiply that by 100 employees for a product of 600 carpets per day.
Next, take 600 carpets per day and multiply by 250 days per year for a total of 150,000 carpets per year.
With an assumption of an unsatisfactory rate of 1/6, we can calculate that out of 150,000 = 25,000 unsatisfactory carpets per year.
Thus, 25,000 carpets at $20 each to re-clean = $50,000 per year in re-cleaning costs.
2. If everyone is trained, how much will the training cost? How much will training cost if only the group with the most errors is trained? Show costs in a spreadsheet and all mathematical calculations.
Training Piece |
All Employees |
50 Employees (most errors) |
Development |
4000 |
4000 |
Direct Costs |
400 |
240 |
|
($20 * 20 hrs.) |
($20 * 12 hrs.) |
Training |
500 |
500 |
Materials |
2000 |
1000 |
|
|
(2000/2) |
Refreshments |
600 |
300 |
Salaries |
12,000 |
6,000 |
|
($30 OT * 4 hrs. * 100 ees) |
($30 OT * 4 hrs. * 50 ees) |
Indirect Costs |
|
|
Training |
1600 |
800 |
|
(160 per day * 10 days) |
(160 per day * 5 days) |
Materials |
600 |
600 |
Clerical |
200 |
100 |
Total |
$21,900 |
$13,540 |
3. If everyone is trained, what is the cost savings for the first year? If only the group with the highest re-cleaning requirements is trained, what is the cost savings for the first year? Show all mathematical calculations
Cost savings for all employees:
Pre: 1/6 of 150,000 = 25,000 carpets to re-clean @ $20 each = $500,000
Post: 1/12 of 150,000 = 12,500 carpets to re-clean @ $20 each =250,000
Post re-cleaning (228,100) less cost of training ($21,900) = $228,100 savings
Costs savings for most deficient employees:
Pre: 1/6 of 150,000 = 25,000 carpets to re-clean @ $20 each = $500,000
Post: 1/9 of 150,000 = 16,667 carpets to re-clean @ $20 each =333,333
Post re-cleaning (333,333) less cost of training ($13,540) = $180,207 savings
4. What is your recommendation? Should just the group with the most re-cleanings be trained or should both groups be trained? Provide a rationale for your recommendation. Show any mathematical calculations used.
I feel that all workers ought to be trained and prepared on the grounds that all representatives should be able to augment the investment of the fix costs.
For instance, let's assume that the worst rated employees with 1/9th of the re-cleaning required are satisfactory; those getting training are unrealistic to improve to the point of acceptability which is 1 in 9. This theory diminished the potential reserve funds that can be acquired from training.
5. Let’s back up and assume that employees had the KSAs needed to clean the offices effectively. What other factors might you look at as potential causes of the re-cleaning problem?
There is a very large likely-hood that workers may need inspiration and/or motivation. One approach to help representatives produce great carpet cleaning without needing to re-clean is to award prizes to the individuals who can finish a full week without re-cleaning. This strategy may be cost effective in the short term when compared to paying the full salaries for individuals to attend training. Another alternate choice could be to offer recognition to employees who perform great work, such as employee of the week, month, quarter and year. This can really help when representatives who are doing great work and motivate others to strive to attain the same status; as an added bonus, they can be the person who trains the other employees that have poor performance.
Reference:
Systems implementation and training (S. Eichers, Comp.). (n.d.). Pearson.