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To answer question 3 question 2 needs to be answered


class="ql-cursor">Q2: A second hand textbook store owner wants to increase sales to students by inserting a new disk into texts for courses that require students use additional resources on the disk. This will enable students that purchase the used text to have access to the software license that is normally used up by the original text owner. The store owner has a cost for the disk but is unsure of how long it will take to insert the new disk since this process will be manual and labourious. He decides to conduct some time studies. The books are in boxes, 20 books per box. He observes the worker he has hired to record the times it takes him to replace a box of books. The owner records the time for 10 boxes of books. Since he realizes the worker will get fatigued as the day progresses he builds in a performance rating factor of .93. The worker will also need personal breaks such as going to the bathroom so the owner builds in an allowance factor of .02. T


Calculate the standard time of this worker so the owner can know how to calculate a cost for the labour component of this process.

The times recorded by the owner for the ten boxes are as follows:   

Observations #

 

Time (min)

 

 

 

1

 

10.23


2

 

10.00


3

 

9.88


4

 

9.97


5

 

10.15


6

 

10.30


7

 

10.24


8

 

11.00


9

 

11.25


10

 

10.88

Q3


a) The bookstore owner in Q2 wants to know if taking 10 observations of his worker inserting disks into the used textbooks were sufficient.

He would be satisfied within an accuracy 2% in the time estimates taken for each box of books but would like to be 99% confident.

Determine if the sample size of 10 observations was sufficient to meet the bookstore owner's expectations. Describe your findings.


b) The bookstore owner knows this work is tedious. However, if it proves to be successful and where by sales increase substantially, this will be ongoing and more workers will be have to be hired. The owner is concerned the tediousness of the work will cause workers to quit early, especially since he can only afford to pay minimum wage.

(ii) Suggests ways the owner should use motivation and incentive techniques to change the psychological component of this type of work to a more a positive one so that turnover for this function is decreased.

(ii) How does new operation for the bookstore owner contribute to sustainability?


c) As it turns out the bookstore owners idea of inserting new software disks into used textbooks is a hit. Sales have increased substantially and not just for courses that require additional software as a resource. The owner realizes that the growth in sales will have to addressed by an improved approach to his production processes. A higher rate of growth can lead to higher profits but the owner also knows that with inefficient productivity this can lead to a faster rate of losses too. Apply the SCOR model to this scenario to recommend how the bookstore owner should design the supply-chain of his operation.

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