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Justification Report

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Air Conditioning and Heating Justification Report Final
Latausha McDougald
ENG 315 – Professional Communications
Professor Mark Crilly
June 1, 2016

Randy Globin
Director of Distribution
Big Rock
425 Sportsman Lane
Nosele, NC 28379

May 31, 2016

Latausha McDougald
432 Regil Road
Shelby, NC 28379

Dear Mr. Globin:

I am pleased to present the report you authorized on May 31, 2016, regarding possible solutions for the extreme weather conditions inside the warehouse.

The installation of heating and air conditioning is very costly when it comes to manpower, equipment, and space. BRS priority is to keep customers happy and also employee safety. It is recommended that proper hydration is provided to all employees as well as giving employees longer breaks.

Thank you for allowing me the opportunity to research possible solutions to insure employee safety as well as keeping production going without any down time. I appreciate time and consideration of my recommendation. Should you have any questions regarding this report, please do not hesitate to contact me at (910) 434-9158.

Sincerely,

Latausha McDougald

Enclosure: Justification Report

Table of Contents
Executive Summary……………………………………………………………………………….4
Problem Statement………………………………………………………………………………...5
Terminology……………………………………………………………………………………….5
Report Overview…………………………………………………………………………………..5
Overview of Alternatives………………………………………………………………………….6
Criteria…………………………………………………………………………………………..5/6
Research Methods…………………………………………………………………………………6
Evaluation of Alternative………………………………………………………………………..6/7
Findings and Analysis …………………………………………………………………………..7/8
Recommendation………………………………………………………………………………….8
References…………………………………………………………………………………………9

Executive Summary
This report is to show all the possible solutions for the weather conditions in the warehouse. Internet research will be done to compare prices of hydrations solutions. Employees and management will be surveyed on possible solutions as well. The results show possibly good reasonable solutions that will satisfy employees as well as management.

In providing proper hydration, alternative B is the cheapest and reasonable solution. Sam’s Club provides Gatorade and water at a cheaper rate than Betty Mills saving BR money and down time.
The company also has chilling rags that are sold in the warehouse. This item can be taken out as company use and be a tax write off for the company. This saves BR money form directly buying it from the vendor for direct use. Installing air conditioning and heating units are not within the company budget and will take up to much time and space. Because of hazardous violations, there is not much that can be done for winter months other than the employee wearing adequate clothing to keep warm.

Problem Statement
Big Rock Sports employees up to 200 employees every year in its warehouse. There is no heating or air conditioning in the warehouse. This issue needs to be addressed, because it gets very cold in the winter and very hot in the summer. In the winter time, employees tend to get sick and may have the potential of having hypothermia because of no heat. In the summer months, employees pass out or leave early from work due to not being cool enough or not having proper hydration. Not having enough employees due to seasonal changes inside the warehouse can cause production to decrease. This is a big issue that needs to be changed before the warehouse becomes an unsafe environment due to the extreme conditions. This issue may cause Big Rock Sports to lose revenue.

Terminology
Proper Hydration – allowing employees to drink Gatorade and water on warehouse floor as they work to help cool off.

Cooling agent – chilly pads are wet and placed around the neck to help cool off employees.

Report Overview
This report is to assess the best and cheapest way to solve the heat and cold wave in the summer and winter months. Two sellers were researched and Sam’s club had the cheapest Gatorade and water that are sold in pallets. Betty Mills does not sell pallets and the equivalent is more costly than alternative B. There is free pickup for alternative A which is located less than 65 miles from the warehouse location.

Alternatives for the installation of heating and cooling systems are just too costly. They do not fit into the budget and they may cause problems in the long run.

Overview of Alternatives
- Provide coolers throughout the warehouse in the summer months filled with water and Gatorade to keep employees properly hydrated.

- Allow employees to take 20 minute breaks instead of 15 during summer months.

- Propose installing heating and air conditioning units.

- Install hanging heating units in the areas where dock doors are open more when unloading and loading trucks.

- Provide portable air conditioners throughout the warehouse. Criteria 1. Comfort – Big Rock Sports want the employees to feel comfortable in their work environment.

2. Cost- How much will it cost for the units, coolers, Gatorade, and water. Big Rock Sports is more concerned with the cost of units than providing hydration for the employees. The budget for the units plus installation is $100,000 plus a budget of a $6,000 year for electric bill.

3. Efficiency – Is Big Rock Sports equipped to install these units?

4. Availability –Does Big Rock Sports have the availability of space for the units? Will the installation interfere with production?

5. Which eliminates the problem the best? Which alternative is reasonable for both employees and management?

Research Methods
The purpose of this report is to provide a safe work environment for employees and staff members. Research methods are to include surveying employees. Internet research will be conducted to get estimates of heating and air conditioning unit cost. Internet research will also be done to potentially find businesses to establish some kind of contract for discounts on bags of ice and Gatorade. The warehouse will be surveyed for the availability of space and potential down time during installation.

Evaluation of Alternatives
Comfort
1. Alternative A – Employees are already are late coming back from their 15 minute breaks. allowing more time could possibly decrease production. Or encourage employees to work harder. 2. Alternative B – Proper hydration and cooling agents decreases the fall out rate and allows employees to pushing increasing productivity. Employee’s blood pressure increases in the summer which can cause major health concerns causing overload on employees Cardiovascular systems. Cost (Hydration)
1. Alternative A – charges $410.00 (1872 count) for a pallet of water and $1188.00 (1296 count for a pallet of Gatorade. Orders have shipping cost and seller is not close to the facility.
2. Alternative B – charges $488.00 (1872 count) for a pallet of water and $1000.00 (1296 count) for a pallet of Gatorade. Offers free pickup. Alternative is close to warehouse. In house truck driver can pick up order at no cost. Efficiency 1. Alternative A – Maintenance personnel only have 4 personnel who can attempt to install Units. Company does not have enough equipment to perform job. 2. Alternative B – Outside personnel hired are costly. Although costly, they have proper qualifications and equipment to perform the job.

Availability 1. Alternative A – Using space company was initially going to knock out to free up more space for merchandise to install heating and air units leaves not space for new merchandise. New merchandise will be on the warehouse flow causing unsafe working conditions. 2. Alternative B – Eliminating large fan units allow the space to install the units. 3. Alternative C- Using portable or regular air conditioners can cause moisture issues in the warehouse damaging merchandise. Also, so items need to remain at room temperature. Heat can also damage merchandise.

Which eliminates the problem the best? 1. Alterative A – Talking to the actual employees reveals the true problems within the company. Employees are able to address their concerns. 2. Alternative B – Management tends to side with corporate. Whatever saves the company the most money is the answer despite employee concerns.

Findings and Analysis
Alternative A gives the employees extra time to rest and cool off. Employees would have to be monitored on when they come back from breaks. If employees are given write ups for being late, then they will be on time. Alternative B provides proper hydration to the employers throughout the day. This will cool them off and they will not need the extra break time.

Both alternatives A and B provide the sale of hydration products. Alternative B provides the best, cheapest option. There are no shipping charges and one of the warehouse truck drivers can pick up the order.

Efficiency wise, the company will be better off hiring an outside agency to perform the work if chosen. Alternative A may not have the proper permits to install anything. The company will be better off taking a costly risk with Alternative B.

Alternative A, B, and C may cause problems in the warehouse. Space becomes a major factor. The warehouse is already filled to capacity. Installing anything will become a problem for employees who are trying to fulfill customer’s orders. This may lead to down time and a decrease in production. Although space is an issue, Alternative B will cause less problems since the fans are located on the back wall. Personnel installing units can work more from the outside than in.

Even though employees may voice their concerns it is still up to management when it comes to which direction to go in. Management has to consider budgets, cost, and other concerns.

Alternative B in all criteria whether chosen are not seems to be the better solution solver for the warehouse.

Figure 1: Graphic Analysis of Findings

Criterion Alternative A Alternative B
Comfort Negotiable Agreeable
Cost More expensive Cheapest
Efficiency Non-Negotiable Negotiable
Availability Non-Negotiable Negotiable
Best Negotiable Negotiable
Total Feasibility Non-Negotiable Negotiable

Recommendation
It is recommended that Big Rock provide the employees with 20 minute breaks as well as proper hydration. Chilly pads that are not selling can be taken out for company use and given to the employees. Sam’s Club sales Gatorade and water at a cheaper price in pallets. Also, there is a potential for BR to get a contract with Sam’s to get these pallets at an even lower price which is less than the budget for the bill for running the air conditioning systems. The recommendation for the winter months is to keep the dock doors closed when they are not in use, keeping cold are out. Installing hanging heating units are within the budget because they will be used only when the warehouse gets to a certain temperature. Also, these hanging heating units will only be in certain parts of the warehouse and will only be used in the winter months.

References

Gatorade/Water: Sam’s Club (2016). http://www.samsclub.com

Gatorade/Water: Betty Mills (2016) http://www.bettymills.com

Kristal-Boneh, E, Harari, G, Green, M S, & Ribak, J. (n.d.). Seasonal changes in ambulatory blood pressure in employees under different indoor temperatures.

Lotz, W. (December 31, 1997). Wet buildings: A moisture primer. Heating, Piping and Air Conditioning, 70, 1, 117-125.

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