Thanks for the help! Mr. K\'s is a very popular hair salon. It offers high-quali
ID: 397238 • Letter: T
Question
Thanks for the help!
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. (14 minutes) Activity 2: Wash and condition hair. (14 minutes) Activity 3: Neck, shoulder, and back stress release massage. (12 minutes) Activity 4: Design the hairstyle and do the hair. (21 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? 63 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 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 to servers. For this, Mr. K is evaluating the reassignment of per customer be?Explanation / Answer
= Sum of time taken for 5 activities
= 14 + 14 + 12 + 21 + 2 minutes
= 63 minutes
Labor content = 63 minutes / customer
Processing time for server S2 = 14 + 12 = 26 minutes
Processing time for server S3 = 21 + 2 = 23 minutes
The bottleneck server is S2 with highest processing time of 26 minutes. Therefore, cycle time of the whole process is also 26 minutes
Average labour utilization
= Sum of duration of all activities / ( 3 servers x 26 minutes cycle time ) x 100
=63 /78 x 100
= 80.77 %
AVERAGE LABOUR UTILIZATION = 80.77%
= 60 minutes/ cycle time 26 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 26/60
=$19.51 ( rounded to 2 decimal places )
COST OF DIRECT LABOUR PER CUSTOMER = $19.51
Under such scenario, the revised bottleneck serverwill be server S3 with processing time of 23 minutes. The revised flow rate of the process = 23 minutes
Number of customers processed per hour
= 60 minutes/ cycle time 23 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 23/60
NEW DIRECT LABOUR COST = $23 PER CUSTOMER
Processing time for server 1 = 14 + 2 = 16 minutes
Processing time for server 2 = 14 + 12 = 26 minutes
Processing time for server 3 = 21 minutes
The bottleneck server is thus S2 with highest processing time of 26 minutes. Therefore, cycle time of the process also will be 26 minutes.
It is to be noted that bottleneck server as well as cycle time of the process remains unchanged vis a vis answer as derived in #c. Therefore, direct cost per customer will remain same as derived in answer #c and i.e$19.51 per customer
NEW DIRECT LABOUR COST PER CUSTOMER = $19.51
Labor content = 63 minutes / customer
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.