Task 2: Cost implications of new initiative (300 to 400 words excluding the equations, table, charts etc) (30 Marks) To comply with quality standards, the management decided to limit the number of calls that can be handled by an agent to 30 per day. This initiative will have direct cost implications as the company will end up recruiting additional agents to satisfy this rule. The agents are currently paid 12.00 per hour. Agents work from 0900 to 0500 PM Monday to Friday. Apart from the wages, the business will incur additional costs while recruiting new agents: Training costs: During induction of new agents, the business use an external training provider who will provide one to one mandatory training costing 300. Administrative Overheads The administrative cost associated with processing payroll, insurance etc comes to 150 a month per employee. However, it decreases by 20% when the number of employees exceeds 6. Team Leader If the team size exceeds 6, the business should recruit a new team leader who will be paid 15 per hour. The management is interested in exploring the cost implications of the new initiative. Task: - Provide the equation that can be used to calculate the total costs the business will incur from the employment of agents for both scenarios (Team size 6) Ensure that the terminologies and variable names are displayed clearly (5 Marks) - Calculate the additional cost the business will incur due to the new initiative (hiring of agents) for the next two months by using forecasting sheet (All three scenarios Upper Bound, Forecast and Lower Bound) are required. (10 Marks) - Fit a trend line to the number of calls received by the call centre and display the equation. (3 Marks) - Write a short executive summary report of the ndings to the management about the cost implications of the new initiative, potential limitations of your calculations and whether restricting the maximum number of calls handled by an agent is right decision or not. Appropriate references should be used while discussing the limitations. (12 Marks) The response to this task could be structured as follows: Section 1. Equation for calculating the total costs Ensure that the terminologies and variable names are displayed clearly and include all scenarios. Section 2 Cost Estimation This section should rst depict the outcome of the forecasting exercise clearly labelled both the chart and table should be included. Forecasting sheet will not work if the date range is not continuous. This can be xed by filling it with Zeros for non working days. The generated forecast should be used to determine the number of agents required which can be used for calculating the additional costs the business will incur due to the new initiative. Section 3 Trend Line Fit a trend line to the data, display the equation and briefly explain the interpretations you can make. For e.g. what type of relationship can be observed? Section 4 Summary Report Using the data and calculations from previous sections, write a short executive summary (No need for intro, conclusion etc) about the implications of the new initiatives. Word count apply only for this section C13 X V fx A B C D E F G 1 Issue Code Issue Resolution Code Resolution Resolution Code Resolution 2 ACC Account query ACCORD Check acount record FIN Raise Finance Query 3 CAN Cancellation CANCEL Cancelled Order SUB Subsitute with otherproduct 4 DEAD Product died TC Pass to Technical Support DEL Delivery enquiry DELI Check delivery record 6 DOA Dead on Arrival BSPT Go through boot script RETN Arrange return MIS Missing items PSPT Go through packing list RETN Arrange return ORD Order query ORDER Check order record SALES Pass to Sales Team 9 PAY Payment query ACCORD Check acount record FIN Raise Finance Query 10 PROD Product query PTREE Go through Product Selection Tre TC Pass to Technical Support 11 SET Setup problem SSPT Go through setup script TC Pass to Technical Support 12 UNEX Unexplained probl FOLL Set up follow up action 13 14 15 16