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Process Analysis Case -2: State Automobile License Renewal Case Susan Miller, th

ID: 2746999 • Letter: P

Question

Process Analysis Case -2: State Automobile License Renewal Case Susan Miller, the new manager of Pomona branch office of the state department of motor vehicles is interested in re-designing of the driver's license renewal operations to handle a greater load of renewal applications. Examining the current system, she discovered that each customer followed a fixed sequence of steps with average times in seconds as noted in the table below Times (sec) 15 30 60 40 20 30 Step (Job) Activities Review application for correctness Process and record payment Check file for violations and restrictions Conduct eye test Photograph application Issue temporary license 4 6 She observed that the work was unevenly divided among the six jobs, and the clerk responsible for checking violations tended to shortcut her task to keep up during peak demand periods. Susan also noted that clerks, paid $12.00 per hour, performed only one job in the current setup.) A photographer was employed at $20.00 per hour to photograph applicants (step 5), and by state policy the temporary license was issued by a uniformed state trooper paid $18.00 per hour The sequence of steps performed had some restrictions. Reviewing the application for correctness must be performed first before any other step is taken. Furthermore, the issuing of the temporary license must be the final step. Because a nearby license renewal office was being closed, Susan was told to expect increased demand reaching 120 applications per hour during the peak periods. Under a budge mandate, Susan needed to do a thorough capacity analysis and increase productivity at minimal cost.

Explanation / Answer

implied ulitilisation = Capacity / demand

Demand is 120 application

Capacity of clerk is for step 3 is 60 sec

so 60 application will be cleared in step 3 in one hour

So implied utlisation = 120/60

=200%

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