Standard Costing; Variance Analysis; Strategic Considerations In a Wall Street Journalarticle, the author notes that various retailers in the United States (e.g., Meijer, Gap, and OfficeDepot) are turning to consulting firms, such as Accenture, to develop engineered labor standards forcashiers and other retail workers. Monitoring labor-hour consumption (i.e., labor efficiency) undersuch standards involves timing from 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 states that the system now in usehas enabled the company to more efficiently staff stores while concomitantly increasing customerservice ratings. A representative from another client of Accenture states that the new system allowsthe retailer to determine how many workers to schedule at a given time, resulting in a labor-costreduction of approximately 8%. Engineered standards were developed many years ago in a manufacturing environment, at places such as Westinghouse, by time-and-motion study experts. Unlikefactory workers, however, most retail clerks deal directly with customers. This raises interestingquestions as to whether and how the use of such monitoring (i.e., control) systems affects customerrelations, including customer satisfaction. Uncertainties associated with nonstandard transactions orevents are also thought to have negative motivational effects on employees whose performance isassessed using such engineered standards. (Source: Vanessa O’Connell, “Stores Count Seconds toCut Labor Costs,” The Wall Street Journal, November 13, 2008, pp. A1, A15. For additional information regarding “workforce-management systems,” go to the website of Accenture Ltd. (www.accenture.com/home.asp) and search under “Operations Workforce Optimization.”)Required5. How can information about cashier time-management be used strategically by a retailer? For example,how can such information be used to lower labor costs for retail stores? For which types of firms wouldsuch detailed information likely be of greater value?
article, the author notes that various retailers in the United States (e.g., Meijer, Gap, and Office
Depot) are turning to consulting firms, such as Accenture, to develop engineered labor standards for
cashiers and other retail workers. Monitoring labor-hour consumption (i.e., labor efficiency) under
such standards involves timing from 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 states that the system now in use
has enabled the company to more efficiently staff stores while concomitantly increasing customerservice ratings. A representative from another client of Accenture states that the new system allows
the retailer to determine how many workers to
reduction of approximately 8%. Engineered standards were developed many years ago in a manufacturing environment, at places such as Westinghouse, by time-and-motion study experts. Unlike
factory workers, however, most retail clerks deal directly with customers. This raises interesting
questions as to whether and how the use of such monitoring (i.e., control) systems affects customer
relations, including customer satisfaction. Uncertainties associated with nonstandard transactions or
events are also thought to have negative motivational effects on employees whose performance is
assessed using such engineered standards. (Source: Vanessa O’Connell, “Stores Count Seconds to
Cut Labor Costs,” The Wall Street Journal, November 13, 2008, pp. A1, A15. For additional information regarding “workforce-management systems,” go to the website of Accenture Ltd. (www.
accenture.com/home.asp) and search under “Operations Workforce Optimization.”)
Required
5. How can information about cashier time-management be used strategically by a retailer? For example,
how can such information be used to lower labor costs for retail stores? For which types of firms would
such detailed information likely be of greater value?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
