PA 4-4 Mr. K\'s is a very popular hair salon. It... Mr. K\'s is a very popular h
ID: 387097 • Letter: P
Question
PA 4-4 Mr. K's is a very popular hair salon. It... 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. (7 minutes) Activity 2: Wash and condition hair. (8 minutes) Activity 3: Neck, shoulder, and back stress release massage. (9 minutes) Activity 4: Design the hairstyle and do the hair. (29 minutes) Activity 5: Check out the guest. (2 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? percent At a wage rate of $15 per hour, what is the cost of direct labor C. per customer per customer? Mr. K. considers hiring a new employee to help any one (and by each server. What would the new direct labor cost be Mr. K also contemplates redesigning the assignment of tasks Activity 5 from S3 to S1. What would the new direct labor cost d. only one) of the servers without changing the tasks performed per customer e to servers. For this, Mr. K is evaluating the reassignment of per customer be?Explanation / Answer
PLEASE FIND BELOW ANSWER TO THE FIRST QUESTION :
= Sum of time taken for 5 Activity
= 7 + 8 + 9 + 29 + 2
= 55 minutes
Labor content = 55 minutes / customer
b)Processing time for server S1 = 7 minutes
Processing time for serverS2= 8 + 9 = 17 minutes
Processing time for server S3 = 29 + 2 = 31 minutes
The bottleneck server is S3 with highest processing time of 31 minutes. Therefore, cycle time of the whole process is also 31 minutes
Average labour utilization
= Sum of duration of all activities / ( 3 servers x 31 minutes cycle time ) x 100
= 55 / ( 3 x 31 )x 100
= 59.14%
AVERAGE LABOUR UTILIZATION = 59.14%
c) Number of customers processed perhour
= 60 minutes/ cycle time 31 minutes
Total wages incurred in 1 hour =$15/ server x 3 servers = $45
Cost of direct labour per customer
= Total wages incurred in 1 hour / Number of customers processed per hour
= 45 x 31/60
=$ 23.25
COST OF DIRECT LABOUR PER CUSTOMER = $23.25
d)The new employee must be added to the bottleneck server which is S3 which currently has a processing time of31 minutes with one employee. The revised processing time of server S3 after addition of 1 employee will become = 31/2 = 15.5 minutes
Under such scenario, the revised bottleneck serverwill be server S2 with processing time of 17 minutes. The revised flow rate of the process = 17 minutes
Number of customers processed perhour
= 60 minutes/ cycle time 17 minutes
Total wages incurred in 1 hour =$15/ server x 4 employees= $60
Cost of direct labour per customer
= Total wages incurred in 1 hour / Number of customers processed per hour
= 60 x 17/60
NEW DIRECT LABOUR COST = $17 PER CUSTOMER
e)With reassignment of activity 5 for S3 to S1,
Processing time for server 1 = 7 + 2 = 9 minutes
Processing time for server 2 = 8 + 9 = 17 minutes
Processing time for server 3 = 29 minutes
The bottleneck server is thus S3 with highest processing time of 29 minutes. Therefore, cycle time of the process also will be 29 minutes.
Cycle time of the process = 29 minutes per customer
Hourly processing capacity( number of customers ) = 60 /29 customers
Hourly wage for deploying 3workers = $15 x 3 = $45
Direct labour cost per customer
= Hourly wage/ Hourly processing capacity
= $45x 29/60
= $21.75
NEW DIRECT LABOUR COST PER CUSTOMER = $21.75
Labor content = 55 minutes / customer
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