Although the use of mobile communication devices

Assignment Help Operation Management

Reference no: EM132201316

Although the use of mobile communication devices by motor vehicle drivers is a dangerous practice, studies have shown that up to 80% of motor vehicle accidents in in Bubble Country are caused by this practice. Surveys have shown that even though drivers recognize that this is a dangerous practice, they cannot resist the temptation of using the devices. The surveys also found that individuals who regularly use their mobile devices while driving do not consider fines to be deterrent. The percentage of accidents attributable to driver distraction caused by the use of mobile communication devices has been increasing by 2% per year. A risk assessment has shown that the risk of having an accident for a driver using their mobile devices is 15%. Public opinion research suggests that the public is more concern about this issue than drinking and driving and would like the government to address it. Last year there were 20,000 motor vehicle accidents attributed to driver distraction in Bubble Country because of mobile communication device use.

In order to address the issue, the government of Bubble Country is considering a policy that will force car makers to install remote equipment in all cars to ensure that mobile communication devices cannot be used when driving. Such equipment is already available and it will cost car makers $12 to install such equipment in each car. The policy will also make it illegal to use a mobile communication device while driving and individuals found doing this will be given a fine of $800.

Part II:

With the information above and any additional information you can find and your own reasonable assumptions, undertake a rough cost benefit analysis

A) How will you quantify and monetize all your identified

1) Costs

2 ) Benefits

3) What time frame will you use and why?

B) With a spreadsheet estimate

1) The Present Value Cost – Economic

2) The present Value Benefits – Economic

3) Discuss any qualitative costs and benefits

C) With the following criteria, determine whether the project is economically feasible

1) Net Present Value Criteria

2) Benefit Cost Ratio

Reference no: EM132201316

Questions Cloud

Explain in detail how performance measurement plans : Explain in detail how Performance measurement plans and talent acquisition plan can be beneficial for a small organization

Identify ethnographic features and epidemiological features : Identify the ethnographic features and epidemiological features of the population that may cause each issue to differentially affect this population.

Most common form of business ownership is the corporation : The most common form of business ownership is the corporation. Which of the following is a valid contract under UCC?

The estimated times-immediate predecessors for activities : The estimated times and immediate predecessors for the activities in a project at John Black’s company are given in the following table.

Although the use of mobile communication devices : Although the use of mobile communication devices by motor vehicle drivers is a dangerous practice, determine whether the project is economically feasible.

Small start-up organization employees strength and traits : How can the HR department define a small start-up organization employees strength and traits?

Determine order size that will minimize the sum of ordering : Determine an order size that will minimize the sum of ordering and carrying costs for each of the six-month periods.

Workplace is competitive advantage for big companies : Explain in detail how Diversity in the Workplace is Competitive Advantage for big companies.

Official and historical mission within the organization : Define the objective of the case study. Identify the important players and their decision making, official and historical mission within the organization.

User Account

All Pages