Hi. Is the math in calculating cost reduction correct? Why use (30-20=10) as the amount saved instead of 30 instead of 10 (30-20). The employees aren't getting paid 20 for the time that we have reduced in overtime (25% to 10%). So it will be 30*40*(0.15)*15. What am I missing?
Hi Aditi! I believe the reason we're using the $10 as the savings, rather than the $30, is because we aren't suggesting we cut the number of hours employees each work, but just that we switch hours from being overtime hours to non-overtime hours, by rearranging our staffing on a weekly basis. You make a great point though, in the real world, it could very well be that these hours aren't able to shift like that, in which case the $30 per hour number would make more sense. These are exactly the kinds of things to clarify with your interviewer if you have these questions, and it should show them that you're able to think about this in a real world way, and actually imagine the implications of the problem throughout each part of the business--great work!!
Yes I was just staring at that page wondering what I missed for a good 30 minutes now, I kept getting $2700/day. Guess I got super confused by the wording. But still great case examples I've learnt so much from your videos!
Great video! I liked how you presented the conclusion and brought up how employees might not like the reduction in overtime. That's a really interesting qualitative aspect I didn't think about. Also, I appreciate you implementing the notes part of the video. Super helpful
I took the longer approach. Good to see a shorter more direct approach in the video, well done by the interviewee Calculate total number of hours worked during the quarter: 15 sites X 15 FTEs per site X 40 hours per FTE per week X 13 weeks per quarter = 117K hours 10% overtime = 12K hours 25% overtime = 29K hours If objective is to convert the "extra" overtime hours back into regular hours, then the calculation is: 17K hours X $10 (wage rate differentials) = $170K savings $170K savings / 15 stores = $11K savings per store from switching "extra" overtime hours back to regular hours
Thank you! That's a great question! To be honest, I could totally see how it might be easy to interpret it the other way around--if in doubt, I'd say it's always okay (and sometimes even good) to just ask for clarification! This would also help buy you a little bit of time to further process what you're looking at.
@@casebinge7352 Great Video. My calculation differs a lil from his, I multiplied cost per week by 4 to get it to costs monthly and multiplied that by 3 months, which is a quarter of the year. My number came up a couple of hundreds above his. I guess that should be fine.
I'm prepping for a case study interview myself coming up this week. This was a good video, but one question I am very surprised that was not asked was asking the client how much profits and revenues have fallen. What is the size of the opportunity that the client is trying to recover from? This ~500k/yr might be something that would wow the CEO or they may laugh at you and say it's a drop in the bucket compared to what they are losing.
Thank you Luma! We really appreciate the positive feedback! We're hoping to put more out sometime before too long! Apologies for the delay, but thanks so much for the encouragement! It makes us excited to do more!
Great question Akhil! I used the $10 because what we were trying to calculate was how much the additional overtime was costing us. The normal $20 pay is essentially a sunk cost that Quick Stop would have to pay no matter what, but the extra $10 is something that they could feasibly affect if they could lower their overtime hours. I hope that helps! Feel free to reply back or email us at casebinge@gmail.com if you have any other questions! Thanks for watching!
@@casebinge7352 Not sure if $20 is a sunk cost because we are talking about overtime here. If there is no overtime then there is no spend, not even $20. So I think that $30 should be considered in its entirety as you are already taking only incremental hours of overtime. Unless you are saying that because of Covid there was an increase in the overtime rate/hr from $20 to $30, I think this is an error. Please do correct me if I am wrong. Thanks
@@paurushsingh3816 only need to look at the marginal increase. If I was scheduled to work for 8 hours and worked 10 instead, I would make $220 (8*20 + 2*30), if they were better at scheduling, i'd be scheduled for the full 10 hours and my pay would be $200
@@namit9823 By that logic, you can actually schedule 50% of all your employees for 16 hours, reduce the overall manpower by 50% and subsequently reduce overheads such as rentals, etc significantly. Even then I strongly doubt the sustainability of a model which makes employees work for more than 8 hrs. It is like a universal truth that you can make an employee work only for 8 hrs every day beyond which you will need to pay overtime and is not related to how you schedule the workload
That's a great question Vijay! Generally I think they will provide legends, though if you don't see one, that is something that you can feel free to ask them for. If they don't give you one after that, then it's almost certain that one isn't critical to understanding the graph or chart. Thanks for the question and for watching!
It's also important to make the most of the axes, titles, and any other labels included, which may on their own be sufficient to not warrant a need for a legend
Thanks for clarifying!...at the end I went with a logic that as in the times of pandemic the #vehicle/#labor will definitely not increase and thus bar graph must be showing these values(as is is flat) and line graph must be the other quantity (which has increasing trend)....But anyway your channel is one of the best way to refresh and get ideas about case study!..I will surely recommend your channel to my friends!
Thank you very much for your video sharing. I would like to venture to ask if I can transfer your video to Chinese websites so that more people can benefit from it.
Thanks for the feedback RY! Sorry for the late reply! By all means feel free to post the link to our channel anywhere! We're always happy to help more people!
@@casebinge7352 you should update the link in the description.. currently here is what pops up when you hit the link: casebinge.com/%E2%80%8B%E2%80%8B , hence the 404 error. But if you just type in casebinge.com - everything works. Great video guys!
Hi. Is the math in calculating cost reduction correct? Why use (30-20=10) as the amount saved instead of 30 instead of 10 (30-20). The employees aren't getting paid 20 for the time that we have reduced in overtime (25% to 10%). So it will be 30*40*(0.15)*15. What am I missing?
Hi Aditi! I believe the reason we're using the $10 as the savings, rather than the $30, is because we aren't suggesting we cut the number of hours employees each work, but just that we switch hours from being overtime hours to non-overtime hours, by rearranging our staffing on a weekly basis. You make a great point though, in the real world, it could very well be that these hours aren't able to shift like that, in which case the $30 per hour number would make more sense. These are exactly the kinds of things to clarify with your interviewer if you have these questions, and it should show them that you're able to think about this in a real world way, and actually imagine the implications of the problem throughout each part of the business--great work!!
Yes I was just staring at that page wondering what I missed for a good 30 minutes now, I kept getting $2700/day. Guess I got super confused by the wording. But still great case examples I've learnt so much from your videos!
Great video! I liked how you presented the conclusion and brought up how employees might not like the reduction in overtime. That's a really interesting qualitative aspect I didn't think about. Also, I appreciate you implementing the notes part of the video. Super helpful
Thanks Harrison! We're glad it could help! Let us know if there's anything else that you think might be useful!
Great video. Thanks. Don't you think the Framework is not detailed or comprehensive enough? Feels like it has very few pointers. Thoughts?
Time stamps are very helpful
I took the longer approach. Good to see a shorter more direct approach in the video, well done by the interviewee
Calculate total number of hours worked during the quarter: 15 sites X 15 FTEs per site X 40 hours per FTE per week X 13 weeks per quarter = 117K hours
10% overtime = 12K hours
25% overtime = 29K hours
If objective is to convert the "extra" overtime hours back into regular hours, then the calculation is: 17K hours X $10 (wage rate differentials) = $170K savings
$170K savings / 15 stores = $11K savings per store from switching "extra" overtime hours back to regular hours
Great video, thanks! How did he know on the spot that the line represent the % pay as overtime and the bars the avg # vehicles / avg emploeeys?
Thank you! That's a great question! To be honest, I could totally see how it might be easy to interpret it the other way around--if in doubt, I'd say it's always okay (and sometimes even good) to just ask for clarification! This would also help buy you a little bit of time to further process what you're looking at.
@@casebinge7352 Great Video. My calculation differs a lil from his, I multiplied cost per week by 4 to get it to costs monthly and multiplied that by 3 months, which is a quarter of the year. My number came up a couple of hundreds above his. I guess that should be fine.
Why did you guys stop publishing videos? Such a great resource
You're the man Kumar, thanks so much for the positive feedback! We're hoping to release more at some point, so stay tuned!
I'm prepping for a case study interview myself coming up this week. This was a good video, but one question I am very surprised that was not asked was asking the client how much profits and revenues have fallen. What is the size of the opportunity that the client is trying to recover from? This ~500k/yr might be something that would wow the CEO or they may laugh at you and say it's a drop in the bucket compared to what they are losing.
Hey guys! You're awesome! I wish you keep on posting videos!
Thank you Luma! We really appreciate the positive feedback! We're hoping to put more out sometime before too long! Apologies for the delay, but thanks so much for the encouragement! It makes us excited to do more!
Question on the math - why use 10$ for the increase in pay instead of 30$ for actual pay?
Great question Akhil! I used the $10 because what we were trying to calculate was how much the additional overtime was costing us. The normal $20 pay is essentially a sunk cost that Quick Stop would have to pay no matter what, but the extra $10 is something that they could feasibly affect if they could lower their overtime hours. I hope that helps! Feel free to reply back or email us at casebinge@gmail.com if you have any other questions! Thanks for watching!
@@casebinge7352 Not sure if $20 is a sunk cost because we are talking about overtime here. If there is no overtime then there is no spend, not even $20. So I think that $30 should be considered in its entirety as you are already taking only incremental hours of overtime. Unless you are saying that because of Covid there was an increase in the overtime rate/hr from $20 to $30, I think this is an error. Please do correct me if I am wrong. Thanks
@@paurushsingh3816 only need to look at the marginal increase. If I was scheduled to work for 8 hours and worked 10 instead, I would make $220 (8*20 + 2*30), if they were better at scheduling, i'd be scheduled for the full 10 hours and my pay would be $200
@@paurushsingh3816 Yes i think you are right
@@namit9823 By that logic, you can actually schedule 50% of all your employees for 16 hours, reduce the overall manpower by 50% and subsequently reduce overheads such as rentals, etc significantly. Even then I strongly doubt the sustainability of a model which makes employees work for more than 8 hrs. It is like a universal truth that you can make an employee work only for 8 hrs every day beyond which you will need to pay overtime and is not related to how you schedule the workload
Will they give legends when they will provide any graphs..it looks confusing at first glance without legends in the graph
That's a great question Vijay! Generally I think they will provide legends, though if you don't see one, that is something that you can feel free to ask them for. If they don't give you one after that, then it's almost certain that one isn't critical to understanding the graph or chart. Thanks for the question and for watching!
It's also important to make the most of the axes, titles, and any other labels included, which may on their own be sufficient to not warrant a need for a legend
Thanks for clarifying!...at the end I went with a logic that as in the times of pandemic the #vehicle/#labor will definitely not increase and thus bar graph must be showing these values(as is is flat) and line graph must be the other quantity (which has increasing trend)....But anyway your channel is one of the best way to refresh and get ideas about case study!..I will surely recommend your channel to my friends!
@@vijaybudhewar7014 That's a great way to think through it! And we really appreciate that! We want to help as many people with this as we can!
you guys should make more videos like this.
thanks so much! We're working on some that should hopefully be out before long!
great channel!
Thank you very much for your video sharing. I would like to venture to ask if I can transfer your video to Chinese websites so that more people can benefit from it.
Thanks for the feedback RY! Sorry for the late reply! By all means feel free to post the link to our channel anywhere! We're always happy to help more people!
Great videos! More content like this pleasse!
Thanks so much Nur! We really appreciate it! And Jake & I are actively working on 4+ new videos, which should launch pre-summer!
Great video! It really helps!!! thx alot!!!
Thank you! We really appreciate that!
Awesome channel...also does anyone see the resemblance between the interviewer and the new Captain America or is it just me?
Thanks so much! And I'm sure both Jake and Wyatt Russell are honored by that
Thanks a lot, but why the links above are not found? Is this my problem?
Hi! Thank you for the comment - can you try clicking on the link again? I refreshed the site so you should be good to go now. -Jake
@@casebinge7352 Sorry, I tried again but it still ''404 Not Found'' 😳
@@mmz1020 Hmmm...we're so sorry for the delay, we're working on fixing it! Thank you for letting us know!
@@casebinge7352 you should update the link in the description.. currently here is what pops up when you hit the link: casebinge.com/%E2%80%8B%E2%80%8B , hence the 404 error. But if you just type in casebinge.com - everything works. Great video guys!
Great video
Thank you so much!