Imagine US is a startup that offers high definition 3D prenatal ultrasounds for
ID: 427638 • Letter: I
Question
Imagine US is a startup that offers high definition 3D prenatal ultrasounds for high-end customers. The service process includes five activities that are conducted in the sequence described below. (The time required for each activity is shown in parentheses):
Activity 1: Welcome a patient and explain the procedure. (8 minutes)
Activity 2: Prep the patient (e.g., show them to the room, apply ultrasound gel). (5 minutes)
Activity 3: Take images. (14 minutes)
Activity 4: Analyze images. (12 minutes)
Activity 5: Discuss diagnostic with patient. (16 minutes)
At each location there are employees (servers) S1, S2, and S3. The assignment of tasks to servers is the following:
S1 does Activity 1.
S2 does Activities 2 and 3.
S3 does Activities 4 and Activity 5.
What is the capacity of this process (in customers per hour)? A. 2.14 B. 4.12 C. 1.24 D. 3.14
Suppose each server is paid $30 per hour and demand is unlimited. What is the cost of direct labor? A. $42.05 per customer B. $37.05 per customer C. $32.05 per customer D. $52.04 per customer
Suppose the demand rate is 2 customers per hour. What is the average server utilization? A. 61.20% B. 93.45% C. 26.67% D. 64.33%
Explanation / Answer
1. Output of S1 = 60/8 = 7.5 per hour
Ouput of S2 = 60/5+14 = 3.157 per hour
Output of S3 = 60/12+16 = 2.142 per hour
Capacity of the process is equal to the speed of the slowest process i.e. S3, which is 2.14
A is correct.
2. Customers served = 2.14 per hour
Total employee cost = 90 per hour
Cost per customer = 90/2.14 = 42.05 A is correct.
3. Server utilisation of A = 2 /7.5 = 26.66%
Server utilisation of B = 2/ 3.157 = 63.35%
Server utilisation of C = 2/ 2.14 =93.45%
Avg utilisation = All three utilisation values /3 = 61.2%
A is correct