1. Problem #1 (Process Analysis)

The local driver's license center processes applications for driver's license renewals through the following three steps. First, the customer registers with the receptionist, who updates the customer's information in the database. This first step takes 3 minutes per customer. Then, the customer visits one of two cashiers to pay the associated fees for the license renewal. This takes 7 minutes per customer because several forms must be printed from the computer and signed by the customer. Finally, the customer visits one of three license processing stations where the customer's picture is taken, and the license is printed. This final step takes 12 minutes per customer.

Questions;

a. Draw a process flow diagram of this process. (10/100)

b.

Assuming unlimited demand, what is the flow rate of the process in customers per hour? (20/100)

c.

Assuming unlimited demand, what would the new flow rate be if the center added one server to the bottleneck resource? (20/100)

2. Problem #2 (Process Improvement)

Atlas Inc. is a toy bicycle manufacturing company producing a five-inch small version of the bike. The assembly line at Atlas Inc. consists of 5 workstations, each performing a single step. Stations and processing times are summarized here:

Step 1 (30 sec.): The plastic tube for the frame is cut to size.

Step 2 (20 sec.): The tube is put together.

Step 3 (35 sec.): The frame is glued together.

Step 4 (25 sec.): Paint is sprayed onto the frame.

Step 5 (30 sec.): Wheels and all other parts are assembled to the frame.

Under the current process layout, workers are allocated to the stations as shown here:

Worker 1: Steps 1 and 2

Worker 2: Steps 3 and 4

Worker 3: Step 5

Assume the workers are paid $15 per hour. Each bicycle is sold for $6 and includes parts that are sourced for $1. The company has fixed costs of $200 per hour. There exists substantially more demand for the bicycle than Atlas can supply.

Questions;

a. Draw a process flow diagram of this process. (10/100)

b.

What would be the profits per hour?(20/100)

c.Assume demand rate is 65 units per hour. Which option is the best in terms of the profit per hour? (20/100)

Option #1: 10% lower material costs,Option #2: 10% lower fixed costs,Option #3: 10% faster at bottleneck