Answer is complete but not entirely correct. Mr. K\'s is a very popular hair sal
ID: 384157 • Letter: A
Question
Answer is complete but not entirely correct. Mr. K's is a very popular hair salon. It offers high-quality hairstyling and physical relaxation services at a reasonab that are conducted in the sequence described below. (The time required for each activity is shown in parenthesis): le price, so it always has unlimited demand. T he service process includes five activities Activity 1: Welcome a guest and offer homemade herb tea. (13 minutes) Activity 2: Wash and condition hair. (14 minutes) Activity 3: Neck, shoulder, and back stress release massage. (14 minutes) Activity 4: Design the hairstyle and do the hair. (30 minutes) Activity 5: Check out the guest. (10 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. What is the labor content? minutes per customer 81 69.38percent $ 29.70 per customer a. b. What is the average labor utilization? At a wage rate of $20 per hour, what is the cost of direct labor per customer? C. Mr. K. considers hiring a new employee to help any one (and only one) of the servers without changing the tasks performed by each server. What would the new direct labor cost be $ 15.00 per customer Mr. K also contemplates redesigning the assignment of tasks to servers. For this, Mr. K is evaluating the reassignment of Activity 5 from S3 to S1. What would the new direct labor cost be? $ 22.22 per customerExplanation / Answer
Answer:- What is the average labor utilization of the servers? Assume the process operates at its capacity.
S1 can process 1/13customers per minute.
S2 can process 1/28customers per minute.
S3 can process 1/40customers per minute
labor content = 13+28+40 =81 min
total idle time = 13+28 = 41min Average labor utilization = 81/(81+41) =66.39%
Answer:- Assume a wage rate of $18 20 per hour. What are the direct labor costs for one guest?
Direct labor costs = (Total wages) / (flow rate) There are three employees with a wage of $ 20/hr implying that the total wages per hour are given by 20x3 = $54 60/hr. We deduce that Direct labor costs = 60/2= $30
Answer:- the additional worker would help S3 and under this case the bottleneck would become S2 with a capacity of 3 customers/hr. Direct labor costs = (20*4)/3 = $26.67
Answer:- S3 would still be the bottleneck but the new capacity of S3 will be of 81/30=2.7 customers/hr
Direct labor costs = (20*3)/2.7= $22.22