Mr. K\'s is a very popular hair salon. It offers high-quality hairstyling and ph

Question

Mr. K's is a very popular hair salon. It offers high-quality hairstyling and physical relaxation services at a reasonable price, so it always has unlimited demand. The service process includes five activities that are conducted in the sequence described below. (The time required for each activity is shown in parenthesis) Activity 1: Welcome a guest and offer homemade herb tea. (12 minutes) Activity 2: Wash and condition hair. (15 minutes) Activity 3: Neck, shoulder, and back stress release massage. (14 minutes) Activity 4: Design the hairstyle and do the hair. (24 minutes) Activity 5: Check out the guest. (8 minutes) Three servers (S1, S2, and S3) offer the services in a worker-paced line. The assignment of tasks to servers is the following: S1 does Activity 1. S2 does activities 2 and 3. S3 does activities 4 and 5 Instruction: Do not round your intermediate calculations. Round average labor utilization to 2 decimal places and all direct labor costs to 2 decimal places a. What is the labor content? minutes per customer b. What is the average labor utilization? ercent At a wage rate of $20 per hour, what is the cost of direct labors per customer? per customer Mr. K. considers hiring a new employee to help any one (and d. only one) of the servers without changing the tasks performed S per customer by each server. What would the new direct labor cost be Mr. K also contemplates redesigning the assignment of tasks to servers. For this, Mr. K is evaluating the reassignment of Activity 5 from S3 to S1. What would the new direct labor cost be? per customer

Explanation / Answer

a) Labor content = 12+15+14+24+8 = 73 minutes per customer

b) Cycle time = maximum flow time of the resources S1, S2, S3 = MAX(12, 15+14, 24+8) = MAX(12, 29, 32) = 32 minutes

Average labor utilization = labor content / (labor content + idle time) = Labor content / (cycle time * number of resources)

= 73 / (32*3)

= 0.76

c) cost of direct labor per customer = Cycle time * Number of resources * Labor cost rate = (32/60)*3*20 = $ 32

d) Currently resource S3 is the bottleneck with flow time = 24+8=32 minutes, therefore the new employee would be assigned to help S3.

After adding the new employee, the flowtime of S3 becomes 32/2 = 16 minutes.

Now the bottleneck is S2, with flowtime = 15+14 = 29 minutes.

the cycle time = 29 minutes.

New Direct labor cost = (29/60)*4*20 = $ 38.67

e) After reassignment of tasks,

Resource S1 time = 12+8 = 20 minutes

Resource S2 time = 15+14 = 29 minutes

Resource S3 time = 24 minutes

Now the bottleneck is S2, with cycle time of 29 minutes

New direct labor cost = (29/60)*3*20 = $ 29

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