Duff Beer : Max Mohr

Duff Beer Group

742 Evergreen Terrace,
Springfield, MA 01152

Dear Loss Prevention Management,

This is a report on the employee theft of Duff Beer product. The report suggests solutions to the
problem and evaluates each solutions feasibility.

We are hoping that this issue can be dealt with swiftly by your department for the good of the
company. This is of concern to our team here on the assembly line as it has been causing a spike
in workplace violence

Thank you for your continued valiant efforts in keeping this company afloat.

Regards,
Assembly Line Management
 Feasibility Report for
Beer Loss Prevention Options

Assembly Line Management

2017
: Rockford Stoller

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 Submissions : Rockford Stoller

Rockford Stoller : Title, Submissions, Solution 2 - Install More Security Cameras

Tyler Dowling : Conclusion, Table of Contents

Maxwell Mohr : Letter of Transmittal, Solution 3 - Provide Employees Beer

Nathan Holzworth : Table of Contents, Solution 1 - Put DuffMan on Security Duty

Deepak Mirchandani : Abstract, Introduction to the problem

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Table of Contents: Tyler Dowling/Nathan Holzworth

Letter of Transmittal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Title Page . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Submissions Page . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Abstract/Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Intro . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Solution 1 - Put DuffMan on Security Duty . . . . . . . . . . . . . . . . . . . . . . . . 6
Solution 2 - Install More Security Cameras . . . . . . . . . . . . . . . . . . . . . . . . 6-7
Solution 3 - Provide Employees Beer . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

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Abstract: Deepak Mirchandani
Our quarterly audit was conducted last Thursday by PricewaterhouseCoopers LLP and
we had some negative results. In our main distribution center approximately 12 pallets of beer
were (replaced with empty cans)-[missing]. Auditors checked security footage and investigated
the issue. The report suggests that a few employees are stealing beer before it is being
transported from the factory to the warehouse. The employees used the blind spots in our
security cameras to take the beer without being identified.

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Intro to the problem : Deepak Mirchandani
Over the past few years, profits at Duff Beer have remained at a similar level. However,
sales have been at a steady increase over the time. This is believed to be due to the amount of
product that has gone missing. Duff Beer Group has partnered with PricewaterhouseCoopers
LLP to ensure that our investors are getting every penny that they deserve and our customers are
not overpaying for their beer. Profitability is a huge factor in determining our companys future
success and we need to ensure that we are doing everything in our power for the future well
being of the company.
Our quarterly reports conducted by PWC has shown a major vulnerability in our security
systems here at Duff Beer. We believe there are a few employees who are stealing beer before it
is moved from our factory center to the distribution warehouse. This is unacceptable and will not
be tolerated here at Duff Beer. The remainder of this report discusses the problem that we are
facing here regarding this issue as well as the potential solutions.

Solution 1 - Put DuffMan on Security Duty : Nathan Holzworth

Our first option for preventing employee theft is to make DuffMan our new chief of
security. Not only will his super-powers allow him to catch unscrupulous employees in the act,
but the threat of getting a super-beatdown from our resident crime-fighter should act as a
powerful deterrent to would-be thieves.
While this will not create much in the way of added cost, there is a downside in that
employee beatings may not play well for our PR. This could also lead to even more arguments
with the local health and safety inspectors than usual. Our legal division also warns that this may
lead to an increase in the amount of workers compensation we have to pay. All of these
concerns aside, DuffMan may be unavailable at times when his work schedule conflicts with his
duties as a crime-fighter.

Solution 2 - Install More Security Cameras : Rockford Stoller

CorpGuards average cost is around $200 per camera with $100 for installation, and a
monthly monitoring fee of around $30 per month. We already have 8 cameras around the outside
of our large manufacturing facility. However, since these incidents are believed to be occurring
at the hands of our employees, we have been unable to catch them in the act on these cameras.
It would take $1,200-1,800, with no added cost to the monitoring fee, to acquire an
additional 4-6 cameras for the inside of our facility. This would allow us to monitor the stocks
and review any footage to eliminate employees stealing.

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In addition to stopping the beer thief(s), it would also add more security to the facility from
crimes not involving employees. As well as being able use the footage as evidence in workplace
disputes.

Solution 3 - Provide Employees Beer : Max Mohr

This is the most feasible solution due to its low cost and ease of implementation.
However, while it would stop the theft of beer it may not help our group here on the assembly
line with our shocking rise in workplace violence incidents. We see no harm in installing a
couple kegs in the break room and along the assembly line to test if the violence stops with the
theft. After all, what beer company has the right to stop its employees from drinking beer?
We estimate the cost of such an installation to be minimal and will enlist the employees
to install their own kegs at their workstation. If this solves the theft problems then the company
will stop losing money - we theorize that employees won't be able to drink more than they
currently do meaning that therefore damage with to the plant itself will remain in line with the
historical average annual repair cost. The risk with implementing this method is that compared to
the other methods it does not guarantee the theft will stop and another strategy may have to be
implemented on top of this one.

Conclusion : Tyler Dowling

Loss and theft prevention remain among our highest priorities for this quarter. We are
losing money on lost products before they leave our manufacturing facilities. We believe that we
can decrease theft this quarter by implementing several different processes. Our first proposal is
an increase of security guards at our facility. Duffman will be head of security at the facility.
CorpGuard Surveillance will be installing state of the art security cameras. We believe that this
partnership with CorpGuard will make theft reasonably more difficult. Our last proposal involves
providing employees with products. We believe that if we provide our employees with a set
amount of Duff Beer, they will be less likely to have a reason for stealing. If these processes are
carried out effectively, we will be able to greatly prevent theft along our distribution network.
Our recommendation for the most effective of these measures would be the security camera
systems. This is likely the cheapest yet most effective method of preventing loss.

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Research : Rockford Stoller/Nathan Holzworth
1. Duff Comics. DuffMan Saves the Day Again. DuffMans Adventures 57, no 1 (2016): 10-
34.

2. PricewaterhouseCoopers LLP, Audit of Duff Beer for Q2 2017. Duff Audits 43, no. 2
(2017): 25-39.

3. CorpGuard Surveillance, Video Surveillance Catalog 2017. CorpGuard Catalog 22, no. 2
(2017): 55-98.