Could you please help me solve the problem step by step? Question 6 (1+2+2+3 poi

Question

Could you please help me solve the problem step by step?

Question 6 (1+2+2+3 points) Mr. K's is a very popular hair salon. It offers high-quality hairstyling and physical relaxation services at a reasonable price. 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. (10 minutes) Activity 2: Wash and condition hair. (15 minutes) Activity 3: Neck, shoulder, and back stress release massage. (9 minutes) Activity 4: Design the hairstyle and do the hair. (24 minutes) Activity 5: Check out the guest. (6 minutes) Three workers (S1, S2, and S3) are staffed to this assembly line, and the assignment of tasks to each workers is: S1 does Activity 1. S2 does activities 2 and 3. S3 does activities 4 and 5

Explanation / Answer

Answer to question # a :

Based on tasks allocated to 3 workers , the workstations are as follows :

Workstation 1 = Activity 1

Workstation 2 = Activity 2 + Activity 3

Workstation 3 = Activity 4 + Activity 5

Thus processing capacity of each workstation as follows :

Workstation 1 = 10 minutes/ guest

Workstation 2 = 24 minutes/ guest

Workstation 3 = 30 minutes/ guest

The bottleneck workstation is the workstation 3 since it has the maximum processing time.

Therefore , bottleneck worker is S3 ( which manages the workstation 3 )

Processing capacity of the process will be determined by capacity of the bottleneck workstation.

Therefore , process capacity

= 60 minutes/ processing capacity of workstation 3

= 60/30

= 2 units /hour

Answer to question # b :

Idle time of each worker

= Processing time of bottleneck workstation/ worker ( i.e. 30 minutes / guest) – Processing time of the respective workstation/ worker

Idle time for S1 = 30 – 10 = 20 minutes/ guest

Idle time for S2 = 30 – 24 = 6 minutes/ guest

Idle time for S3 = 30 – 30 = 0

Answer to question # c :

Wages paid to 3 workers ( @ $15/ hour ) = $15 x 3 = $45

Number of units produced per hour = 2 units

Therefore , cost of direct labour = $45/2 = $22.5 / unit

Answer to question #d:

When activity 5 is assigned to S1, revised processing time of three workstations as follows :

Workstation 1 = 10 + 6 = 16 minutes/ guest

Workstation 2 = 15 + 9 = 24 minutes/ guest

Workstation 3 = 24 minutes/ guest

The bottleneck workstations are now workstation 2 and workstation 3 each with capacity of 24 minutes/ guest. Therefore, Capacity of the process which is determined by capacity of the bottleneck operation = 60 / 24 = 2.5 units / per hour

Total labour cost per hour for 3 employees = $15 x 3 = $45

Therefore, new direct labour cost = $45/2.5 = $18 / unit

This reassignment is an improvement indeed because it reduces direct labour cost from $22.5 / unit to $18 / unit

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