? State Automobile License Renewals Henry Coupe, the manager of a metropolitan b
ID: 332843 • Letter: #
Question
? State Automobile License Renewals Henry Coupe, the manager of a metropolitan branch office of the determined Ihat his office should be prepared to accommodase a max- state department of motor vehicles, attempted to analyze the driver's imum demand of processing 120 rene wal applicants per hour license-renewal operations. He had to perform several steps. After examining the license-renewal process, he identified those steps and th the clerk responsible for checking violations tended to shortcun associated times required to perform each step. as shown in the fol. her tisk to keep up with the others. Long lines lowing table: de ahserved that work was unevenly divided among clerks maximum-deimand periods Coupe also found that Steps 1 to 4 were handied by general clerks who were each paid S12 per hour. Step 5 was performed by a photographer paid $16 per hour. (Branch offices were charged $10 per hour for cach camera to perform photography) Step 6. issuing emporary licenses, was required by state policy to be handled by uni formed motor vehicle officers. Officers were paid S18 per hour but could be assigned to any job except pholagraphy State Automobile License Renewal Process Times AVERAGE TIME TO STEP . Review renewal application for 2 Process and record payment 3. Check file for violations and restrictions 4. Conduct eye test S. Photograph appicant 6 Issue temporary license PERFORMsec) 15 30 60 20 A review of the jobs indicated that Step I, reviewing applica- tions for correctness, had to be performed before any other step eould coukd not be Henry Coupe was under severe pressure to increase productivity and reduce costs, but he was also told by the regional directer that be taken. Similarly. Step 6, issuing temporary licenses. performed until all the other steps were completed. 30 Coupe found that each step was assignod to a differem person. he must accommodate the demand for renewals. Otherwise, "heads Each application was a separate process in the sequence shown, He would roll." Discussion Questions 1. What is the maximum number of applications per hour that can be handled by the present 2. How many applications can be processed per hour if a second clerk is added to check for 3. If the second clerk could be added anywhere you choose (and not necessarily to check configuration of the process? violations? violations, as in Question 2) what is the maximum number of applications the process can handle? What is the new configuration? Hew could you suggest modifying the process to accommodate 120 applications per hour? What is the cost per application of this new configuration a.Explanation / Answer
First determine Capacity of current process:
Step
JOB
Average Time To Perform Task
(Time In Seconds)
Capacity per hour
[(60 x 60 seconds)/(t seconds)]
1
1. Review renewal application for correctness
15
3600 sec/15 sec = 240 Applications per hour
2
Process and record payment
30
3600 sec/30 sec = 120 Applications per hour
3
Check file for violations and restrictions
60
3600 sec/60 sec = 60 Applications per hour
4
Conduct eye test
40
3600 sec/40 sec = 90 Applications per hour
5
Photograph applicant
20
3600 sec/20 sec = 180 Applications per hour
6
Issue temporary license
30
3600 sec/30 sec = 120 Applications per hour
Current capacity of process = minimum capacity among the process steps
Minimum capacity among the process steps is for step 3 = 60 applications per hour
Current capacity of process = 60 application per hour
2.
If the 2 clerks are assigned to perform step 3, the capacity per hour for step 3 is calculated as follows:
Capacity = No. of employees x (available time/processing time)
Capacity = 2 x 3600/60 = 120 applications per hour
However, according to capacity of step 4, not more than 90 customers can be process per hour.
Thus, the capacity of process will increase from 60 applications/hour to 90 applications/hour. Even 2 clerks are added to step 3, the bottleneck is shifted from step 3 to step 4.
3.
Steps 3 and 4 have capacity less than 120 as compared to rest of the steps. If the second customer is assigned to step 3, the capacity of process is 90 applications/hour. If the second clerk assigned to step 4, the capacity will remain same as current capacity, 60 applications per hour.
To achieve output rate of 120 application per hour, add employees to the steps those have capacity less than 120 application per hour.
Add one clerk to step 3 and one clerk to step 4, recalculate the capacity of process as follows:
Step
JOB
Average Time To Perform Task
(Time In Seconds)
Number of employees required
Capacity per hour
[(3600 seconds)/(t seconds)] x (# of employees)
1
1. Review renewal application for correctness
15
1
(3600 sec/15 sec) x 1 = 240 Applications per hour
2
Process and record payment
30
1
(3600 sec/30 sec) x 1 = 120 Applications per hour
3
Check file for violations and restrictions
60
2
(3600 sec/60 sec) x 2 = 120 Applications per hour
4
Conduct eye test
40
2
(3600 sec/40 sec) x 2 = 180 Applications per hour
5
Photograph applicant
20
1
(3600 sec/20 sec) x 1 = 180 Applications per hour
6
Issue temporary license
30
1
(3600 sec/30 sec) x 1 = 120 Applications per hour
Minimum capacity among the process steps is for step 3 or 6 = 120 applications per hour
Current capacity of process = 120 application per hour
Step
JOB
Average Time To Perform Task
(Time In Seconds)
Capacity per hour
[(60 x 60 seconds)/(t seconds)]
1
1. Review renewal application for correctness
15
3600 sec/15 sec = 240 Applications per hour
2
Process and record payment
30
3600 sec/30 sec = 120 Applications per hour
3
Check file for violations and restrictions
60
3600 sec/60 sec = 60 Applications per hour
4
Conduct eye test
40
3600 sec/40 sec = 90 Applications per hour
5
Photograph applicant
20
3600 sec/20 sec = 180 Applications per hour
6
Issue temporary license
30
3600 sec/30 sec = 120 Applications per hour
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