Here is a Driver’s License Office process Step 1: Check application (15 sec), st

Question

Here is a Driver’s License Office process Step 1: Check application (15 sec), step 2: Process Payment (30 sec), Step 3: Check for violations (60 sec), Step 4: Conduct eye test (40 sec), Step 5: Photograph applicant (20 sec) & Step 6: Issue new license (30 Sec) The office has 6 clerks, one for each step. Required: Part I: (a) Draw the process flow and include the flow time for each step. (b) How long does it take to process one applicant’s driver license? (c) What is the capacity rate for each step*? (d) What is the capacity rate of the whole process? (e) What is the throughput rate of the whole process? (f) Compute the utilization for each step in the process*. (g) Which step/s are the bottleneck in the process? *Summarize your results for (c) and (f) in a table. Part II: Redo Part I (a)-(g) for additional clerk in step 1. (h)What does increasing the capacity of the bottleneck process do to the utilization of the bottleneck station? Part III: Redo Part I (a)-(g) for additional clerk in step 3.

Explanation / Answer

Ans 1 Processing capacity for different steps

Step 1 = 3600/15 = 240 per hour

Step 2 = 3600/30 = 120 per hour

Step 3 = 3600/60 = 60 per hour

Step 4 = 3600/40 = 90 per hour

Step 5 = 3600/20 = 180 per hour

Step 6 = 3600/30 = 120 per hour

Part I

(a) Process flow chart

Checking Application ( 15 sec.)

I

Process Payment ( 30 sec.)

I

Check for violations ( 60 sec.)

I

Conduct eye test ( 40 sec)

I

Photograph Applicant ( 20 sec)

I

Issue new licence ( 30 sec)

(b) Issue time of a new licence = sum of all time values from step 1 to 6

= 15+30+60+40+20+30 = 195 sec.

(c) Capacity rates

Step 1 = 3600/15 = 240 per hour

Step 2 = 3600/30 = 120 per hour

Step 3 = 3600/60 = 60 per hour

Step 4 = 3600/40 = 90 per hour

Step 5 = 3600/20 = 180 per hour

Step 6 = 3600/30 = 120 per hour

(d) Capacity rate of the whole process is equal to the slowest subprocess, i.e. 60.

(e) Throughput rate = 3600/195 = 18.46 = 18 licences per hour

(f) capacity utilizatio of steps when the process works with the capacity of the slowest process.

Step I = 60/240 = 25%

Step II - 60/120 = 50%

Step III - 60/60 = 100%

Step IV - 60/90 = 66%

Step V - 60/180 = 33%

Step IV - 60/120 = 50%

(g) Step III is the bottleneck in the process because its output is lowest.

Part II

(a) Flowcharts will have no difference except the time taken for first step being 7.5 sec.

(b) The application time = 7.5+30+60+40+20+30 = 187.5 sec.

(c)  

c) Capacity rates

Step 1 = 3600/7.5 =480 per hour

Step 2 = 3600/30 = 120 per hour

Step 3 = 3600/60 = 60 per hour

Step 4 = 3600/40 = 90 per hour

Step 5 = 3600/20 = 180 per hour

Step 6 = 3600/30 = 120 per hour

(d) It will be ame as before i.e. 60

(e) Throughput rate = 3600/187.5 = 19.2 =19

(f) Utilization of individual steps

Step I = 60/480 = 12.5%

Step II - 60/120 = 50%

Step III - 60/60 = 100%

Step IV - 60/90 = 66%

Step V - 60/180 = 33%

Step IV - 60/120 = 50%

(g) The bottleneck is step III as before. The change in step I will have no effect on it.However, increasing the capacity of Step III ( Bottleneck) will make it more efficient, increasing overall capacity of the process

Part III

(a) Flowchart

Checking Application ( 15 sec.)

I

Process Payment ( 30 sec.)

I

Check for violations ( 30 sec.)

I

Conduct eye test ( 40 sec)

I

Photograph Applicant ( 20 sec)

I

Issue new licence ( 30 sec)

(b) Sum of all steps will be equal to the time taken to get the licence issued

15+30+30+40+20+30 = 165

(c) Capacity rate of steps

Step 1 = 3600/15 = 240 per hour

Step 2 = 3600/30 = 120 per hour

Step 3 = 3600/30 = 120 per hour

Step 4 = 3600/40 = 90 per hour

Step 5 = 3600/20 = 180 per hour

Step 6 = 3600/30 = 120 per hour

(d) Capacity rate of whole process will be equal to the capacity of the slowest process i.e.90

(e) Throughput rate = 3600/165 = 21.81 = 21

(f) Utilization rate

Step I = 90/240 = 37.5%

Step II - 90/120 = 70%

Step III - 90/120 = 75%

Step IV - 90/90 = 100%

Step V - 90/180 = 50%

Step IV - 90/120 = 75%

(g) Step IV is now bottleneck that has lowest capacity of 90 per hour.

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