Process : Mailing to the alumni of colege

Subject : Scholarship Fund contribution

Beginning : Letters and envalopes individually addressed
Ending : Commemorative stamp placed

Step Time (min) Step Description

1 0.2 X The letters are processed (matched with correct envel
2 0.12 X The letters are folded
3 0.1 X The letters are stuffed into the correct envelope
4 0.05 X The letters are sealed
5 0.1 X Large commemorative stamp placed on the upper righ
total 0.57

b) total time to stuff,seal and stamp 2,000 envelopes.

= 2000 * 0.25
= 500 minutes

$8 dollars per haour

= $ 8* 0.57 * 2000
= $ 9120 152

c) i) Each letter has the same greeting, " dear alumnus or alumna", instead of person's nam
New time : 0.37 minutes = decrease time
New cost: $ 5920 = decrease cost

ii) Mailing labels are used and have to be put on the envelope ( 0.10 minutes)
New time : 0.67 minutes = increase time
New cost: $ 10720 = increase cost

iii) Prestamped envelopes are used

New time : 0.47 minutes = decrease time
New cost: $ 7520 = decrease cost

iv) Envelopes are stamped by a postage meter which can stamp 200 letters per minute
Postage meter efficiency = 200 /
= 3.333333
= 0.3 seconds
New time : 0.475 minutes = decrease time
New cost: $ 7600 = decrease cost

v) Window envelope beind used

 New time : 0.27 minutes = decrease time
New cost: $ 4320 = decrease cost

vi) A preaddressed envelope is included with each letter for contributions ( add 0.05 minu
New time : 0.62 minutes = increase time
New cost: $ 9920 = increase cost

d) Yes, option 2 and 6

Additional steps are introduced into the process

e) Yes, option 1, 3,4 and 5

Number of steps are decreased or process becomes more efficient
ssed (matched with correct envelope)

d into the correct envelope

ve stamp placed on the upper right hand corner of each envelope

alumna", instead of person's name

velope ( 0.10 minutes)

n stamp 200 letters per minute

60

= 0.005 minutes
for contributions ( add 0.05 minutes to stuffing step)