"Henry Coupe, manager of a metropolitan branch office of the state department of motor vehicles, attempted to perform an analysis of the driver's license renewal operations. Several steps were to be performed in the process. After examining the license renewal process, he identified the steps and the associated times required to perform each step as shown below:
Job Average Time to Perform (Seconds)
1. Review renewal application for correctness 15
2. Process and record payment 30
3. Check file for violations and restrictions 60
4. Conduct eyetest 40
5. Photograph applicant 20
6. Issue temporary license 30
Coupe found that each step was assigned to a different person. Each application was a separate process in the sequence shown in the exhibit. Coupe determined that his office should be prepared to accommodate the maximum demand of processing 120 renewal applicants per hour.
He observed that the work was unevenly divided among the clerks, and that the clerk who was responsible for checking violations tended to shortcut her task to keep up with the other clerks. Long lines build up during the maximum demand periods.
Coupe also found that jobs 1,2 3 and 4 were handled by general clerks who were each paid $12 per hour. Job 5 was performed by a photographer paid $16 per hour. Job 6, the issuing of temporary licenses, was required by state policy to be handled by a uniformed motor vehicle offcer. Officers were paid $18 per hour, but they could be assigned to any job except photography.
A review of the jobs indicated that job 1, reviewing the application for correctness, had to be performed before any other step. Similarly, job 6, issuing the temporary license, could not be performed until all the other steps were completed. The branch offices were charged $10 per hour for each camera to perform photography.
Coupe was under severe pressure to increase productivity and reduce costs, but he was also told by the regional director of the department of motor vehicles that he had better accommodate the demand for renewals. Otherwise, "heads would roll".
a. What is the maximum number of applications per hour that can be handled by the present configuration of the process?
b. How many applications can be processed per hour if a second clerk is added to check for violations?
c. If the second clerk be added anywhere you choose (and not necessarly to check for violation, as in question b) What is the maximum number of applications the process can handle? What is the new configuration?
d. How would you suggest modifying the process to accommodate 120 applications per hour? What is the cost per application of this new configuration?"