Team project report

.docx

School

California State University, Fullerton *

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Course

101

Subject

Industrial Engineering

Date

Apr 3, 2024

Type

docx

Pages

3

Uploaded by DoctorClover26013

Report
Budget For Implementation Overview Regarding the cost of the physical assets used in the completion of our solution, there is just one base cost, that being the cost of the storage units for the drinks. Our solution requires the purchase and modification of a commercial level refrigeration unit as well as the purchase and modification of a commercial level food heater. Other than the cost of the physical assets, employee training and the implementation of our solution across all Starbucks nationwide will present a significant cost to the company. Commercial Heating Unit The commercial heating unit is a critical part of our solution, as it represents the backbone of organizing and distributing ordered hot foods. The unit alone comes at a cost ranging from $2200 to $7000 depending on the size of the unit. It is up to each store’s discretion and the level of traffic that they experience on a daily basis to determine the size of the unit needed. With the larger sizes ranging in the higher end of the price range. Modifications will also be applied to these units to be unlocked with the scannable code the customers will provide. The back of each unit will also be removed for the employees to allow them to place the foods in them. These modifications are projected to cost approximately an additional $2,000 to both engineer and manufacture these new designs. However, these modification costs will be heavily weighted on the front end. The engineering cost will be a one-time expense incurred by the company, and the manufacturing costs will be decrease as time progresses by streamlining the production process. Commercial Refrigeration Unit The other critical component of our solutions implementation is the commercial refrigerating unit. Starting at approximately $1400, the commercial refrigeration unit is a necessity in order to store all cold drinks from the online order, as to maintain their temperature as well as to prevent any theft that might occur. The price ranges up to $5000 however, in our plan we leave it up to the stores discretion to deem what will best suit the demand that the specific Starbucks shop fields. On average, the cost of this unit will be $3000, being able to hold around 9 products at a time. This unit will also require modifications, similar to heating unit, so the estimated costs of these modifications will be around the same. However, for this unit we can subtract the engineering costs as both these units function similarly enough that one design will suit both. This places the cost of modifications of the refrigeration unit at 1,000. Indirect Costs
Employee Training Refridgeration Heating Miscellaneous
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