How to solve

Step

Average Time to Perform $($sec$)$

Review renewal application for correctness

$15$

Process and record payment $30$

Check file for violations and restrictions

$60$

Conduct eye test $40$

Photograph applicant $20$

Issue temporary license $30$

LaToya found that each step was assigned to a different person. Each application was a separate process in the sequence shown. She determined that her office should be prepared to accommodate a maximum demand of processing $120$ renewal applicants per hour.

She observed that work was unevenly divided among clerks and that the clerk responsible for checking violations tended to shortcut her task to keep up with the others. Long lines built up during the maximum$-$demand periods.

LaToya also found that Steps $1$ to $4$ were handled by general clerks who were each paid $$24$ per hour. Step $5$ was performed by a photographer paid $$32$ per hour. $($Branch offices were charged $$20$ per hour for each camera to perform photography.$)$ Step $6,$ issuing temporary licenses, was required by state policy to be handled by uniformed motor vehicle officers. Officers were paid $$36$ per hour but could be assigned to any job except photography.

A review of the jobs indicated that Step $1,$ reviewing applications for correctness, had to be performed before any other step could be taken. Similarly, Step $6,$ issuing temporary licenses, could not be performed until all the other steps were completed.

LaToya Clarendon was under severe pressure to increase productivity and reduce costs, but she was also told by the regional director that she must accommodate the demand for renewals. Otherwise, "heads would roll."

Source: Modified from a case by W$.$ Earl Sasser, Paul R$.$ Olson, and D$.$ Daryl Wyckoff, Management of Services Operations: Text, Cases, and Readings $($Boston: Allyn & Bacon$).$

Answer the following questions here and show your detailed work $($solution$)$ below for each part starting next page. If you worked on a spreadsheet, copy it under each part of your solution. Once finished, create a pdf file, and upload it on Canvas.

Part $1$: What is the maximum number of applications per hour that can be handled by the present configuration of the process?

$[$Your answer here$]$

Part $2$: How many applications can be processed per hour if a second clerk is added to check for violations?

Part $3$: Which of the following configuration changes would not satisfy the demand of $120$ applications per hour?

a$.$ A second clerk is added to step $4,$ and steps $1,2,$ and $3$ are combined and performed by the three current clerks for those steps.

$.$ Steps $1,2,3,$ and $4$ are combined and performed by $5$ total clerks.

c$.$ A second clerk is added to step $3,$ and a second clerk is added to step $4.$

d$.$ A second clerk is added to step $3,$ and steps $1$ and $4$ are combined and performed by the two current clerks for those steps.

Part $4$: What would be the total hourly cost of a configuration that used $5$ total clerks to each perform a combination of steps $1$ through $4,$ plus a photographer to perform step $5,$ plus a motor vehicle officer to perform step $6?$