Project instructions: NOTE: This project must be completed and submitted in Canvas as an Excel document! This is part of the assignment. Your job is to staff the Old Main Bakery and Deli, which is located in a downtown office building. This operation caters to students and workers in the downtown area, but is mostly for the benefit of the employees of the office building (to keep them closer to the office during the day!) Using Excel, develop a chart similar to the one below and plan the staffing and scheduling for the Old Main Deli. There is no single staffing formula that is to be used, you must think about the scenario and make decisions about the positions and hours needed and assign a pay rate (which will dictate the amt. of taxes to be paid.) The minimum wage in PA is $7.25/hr The bakery and deli is open 7am-3:30pm, five days a week, Monday – Friday. Closed Saturday/Sunday. You can schedule staff to work all five days or fewer, just indicate clearly on your Excel schedule. The daily average sales is $1,800 and the daily customer count is 300. Sales history shows: Approx. 30% of revenue generated between 7-8am, approx. 50% of revenue between 11am-1pm. The Bakery & Deli uses mostly convenience foods, especially at breakfast, but makes fresh sandwiches daily. Management’s goal is to keep labor costs right around 23% of revenue. (NOT way below and NOT above!) Management also has a goal of producing $44 is sales per labor hours scheduled. You will need to pay employer taxes for Social Security tax (6.2%) and Medicare tax (1.45%). (Use one or two columns on your Excel sheet – your choice.) Assume no employees will receive other fringe benefits. The labor market is fairly tight so there is no waitstaff. All mgmt./supervisors are included on the schedule and in total labor cost (there is no “owner.”) Customers place orders and pay at one location, and pick up orders at another location. Disposables are used and customers clear their own tables. Be sure you indicate who is in charge of opening, closing, and supervising the other employees? Make sure these employees have appropriate job titles, schedules and compensation? No employees should have shifts of less than 3 hours, 4 hours is preferable. Remember: Too many hours & you won’t meet your budget, too few hours & you can’t provide good customer service! You need to figure out a staffing/scheduling plan that is on target with mgmt. goals. Be sure your Excel sheet shows all the information in the chart below as well as the answers to the following questions 1-10. How much (in dollars) can you plan to spend on labor per day? How many total labor hours can you schedule each day? How much are you actually spending on labor per day? What is your actual overall labor cost percentage once you pay wages and taxes? What is your actual overall sales per labor hour? Calculate two labor productivity measures that you could use to assess your performance for the Old Main Deli (other than Labor Cost % and Sales/labor hr.) Show your two productivity measures and calculations on your Excel sheet. Provide a brief (1-2 sentences) explanation explaining why you chose EACH productivity measure. One explanation for each measure. (Please do not use the reason…it is easy to calculate!) Briefly explain how you would expect the operation to handle a staff member calling in sick? Suggest two strategies this operation could use if the minimum wage went to $10 (or higher) in PA. Briefly describe something you learned from this project abobcqut using labor productivity measures.
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