STATE AUTOMOBILE LICENSE RENEWALS
1. What is the maximum number of applications per hour that
can be handled by the present configuration of the process?
The process times and activities for each activity are identical
because all have only one station. The maximum output of
renewals will be limited to 60 renewals/hour (3600 sec/hr 60
sec/renewal) by the bottleneck or longest process time.
If each step in the process is handled by one person, it can be
seen that each station will be waiting for the clerk who checks the
file for violations. This is because this step takes the longest
(60 seconds). The task of “check file” will be the bottleneck, and a
line will build up in front of this station. The clerk and expensive
equipment for the photographic step will be idle approximately 1/3
of the time (20 seconds 60 seconds).
A balanced line process is one in which the process times of
each station are the same. An obvious way to balance the line is to
add stations to the bottleneck activity. However, this may not be the
most efficient solution. In some cases, it is possible to combine activities creatively and make more productive use of workers.
LO 9.5: Explain how to achieve a good process-oriented facility
layout
AACSB: Analytical thinking
2. How many applications can be processed per hour if a second
clerk is added to check for violations?
If a second file clerk is added to the activity of checking files,
the process time for this activity is reduced to 30 sec/location
(60 seconds/2 locations). The bottleneck now becomes the eye
test. The maximum output of renewals becomes 90 renewals/hour
(3600 sec/hour 40 sec/renewal).
LO 9.5: Explain how to achieve a good process-oriented facility
layout
AACSB: Analytical thinking
3. Assuming the addition of a second clerk (anywhere you
choose), what is the maximum number of applications the process
can handle?
If activities 1, 2, and 3 can be successfully combined to form a
new activity taking 105 seconds that is accomplished by the same
three people, the process time of the new combined task is
35 seconds. So without adding any personnel, as was done above,
it is possible to process up to 90 renewals per hour.
Creative rearranging and combining of tasks can produce
other cycle times. The only limitations are that (1) the tasks must
be performed in a logical sequence, and (2) the facilities and
equipment must be available for the tasks.
LO 9.5: Explain how to achieve a good process-oriented facility
layout
AACSB: Analytical thinking
4. How would you suggest modifying the process in order to
accommodate 120 applications per hour?
This question requires trial-and-error creation of proposed
solutions. Presented below are proposed solutions that each result
in the capacity for handling 120 renewals per hour. Solution A was
achieved by simply expanding the number of stations performing
each job so that at least 120 licenses are processed per hour.
Solution B combines jobs such that the process time at most
stations equals the bottleneck process time (or cycle time).
Although this reduced the number of employees from 8 to 7, one
of these is an additional photographer with another camera. So the
total costs is increased. Solutions C and D produce the same costs
per renewal, $0.867, and both employ 7 persons.
Are solutions C and D equal? Some managers would argue
that the five people who each perform jobs 1, 2, and 3 have an
enriched job. Others would argue that enlarging a job is not the
same as enriching a job. How difficult will it be to monitor the
performance of each of these five people working independently
as a line process? How difficult will it be to teach each of the five
employees all four jobs rather than teaching each person one or
two jobs? This is where the quantitative analysis ends and
judgment must be exercised.
LO 9.5: Explain how to achieve a good process-oriented facility
layout
AACSB: Analytical thinking
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Operations Management: Sustainability and Supply Chain Management, 12th Edition (Free Ebooks Download)
Jay Heizer, Texas Lutheran University
Barry Render, Graduate School of Business, Rollins College
Chuck Munson, Carson College of Business, Washington State University
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