Standard Cesting, Varince Amnlysis, and Strategic Comiderstios In a recent Wall

Question

Standard Cesting, Varince Amnlysis, and Strategic Comiderstios In a recent Wall Street Jourml article, te author notes that various retailers in the U.S. (eg Meijer, In., Gap, Inc., Offce Depot, Inc, and Toys "R" Us, Im.) am torning to consulting firms, such as Accentore, to develop engineered labor standards for cashiers and other etai workers. Monitoring labor-hour consomption (ie., labr efficency) noder such standards involves timinfrom the first scan of an item in a customer's purchase to the production of a sales receipt for the customer. A commentator for Meijer, Int. states that the system now in use had enabled the company to more efficiently staff stores while concomitanty increasing customer-service ratings. A repesentative from another clieat of Accentore states that the new system aflows the retaier to determine how many warkers to schedule at a given time, remuiting in a labor-cost redaction of approximately 8 percent Engineerd standards were developed many years ago by in a manufacturing environment, at places such as Westinghouse, time-and-motion study experts. Ualike factor worlers, bowever, most retd clerks deal directy with customers. This raises interesting questions as to whether and how the use of such monitoring (ie., control) systems affects customer reations, incuding customer satisfaction. Uncertainties associated with sonstandard tanactions or eveats are also thought to have nezative motivational effects on emplovees whose performance is assessed ssing such engineered standards Required 1The article refers to the terms engineered labor standards and tine-andmotion studies. Criically examine each of thez two terms and explain their uefulcess in mangemeat decision making 2. Evaluate which variaces will be the basis for monitoring a cashier's pedormace, as described in the above-refeeaced article? 5. Anabie the cost implication ofa above 4. What cathier activities might invalidste cashier time measuces? What recommendation(s) do you have for a ddcessing this pcoblem 5. As described case, ny coarol monitoring system is seely to have comsequences. Ia the present context, what employee moale and customec-ervice problems might artse om the system that was angletected, wha: steps tal reps do tes diak a retailer, such as dose described che aracle, can aie is made as instea?

Explanation / Answer

Part 1:

Engineered labour standard is a term which has created lots of confusion as to its real meaning. However, the closer meaning that can be attached to the term is an accepted methodology which is developed after studying industrial engineering handbooks to improve the efficiency of workers and employees in general. Thus, in case of an organization is the methodology developed to manage the workers and employees of the organization to improve their efficiency.

A business efficiency technique to combine the work of Frederick Winslow Taylor on time study and the work of Frank and Lillian Gilbreth on motion study to improve the efficiency of business. Thus, the mainly objective of the study is to improve the efficiency of business by improving the utilization of time and efficiency of motion.

Part 2:

The following variances will be the basis for monitoring a cashier’s performance:

Part 3:

In case of variances in the performance of a cashier then the cost associated with such variances could be extremely huge. The negative performance of the cashier and his inability to discharge his responsibilities effectively could have major impacts on the business organizations and its performance.

Part 4:

The following cashier activities might invalidate cashier time measures:

Recommendations to address the problems:

  

   

   

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