Please answer all the questions with complete solution and detailed explanation.
ID: 459066 • Letter: P
Question
Please answer all the questions with complete solution and detailed explanation. Thanks!
Henry Dilay, the manager of a branch office of the Land Transportation Office is being pressured by his regional director to increase productivity, reduce cost and accommodate demand in the vehicle registration renewal of his branch office. There are 6 operations involved in the renewal process. Operation 1 must be performed first before any other operation, while Operations 5 and 6 must be the fifth and the last, respectively. All others can be done in any order. The operations and the corresponding average times to perform operation on one renewal, the number of operators performing each and each operator's hourly rates are: Operation 5 has to be done by Mr. Dilay, and Operation 6 by the cashier. The layout of the office where these operations are performed is shown in Figure Last year the hourly demand was 10 applications per hour. To cope with the demand, all personnel had to render overtime, with each being paid the whole hourly rate for every overtime hour or fraction of an hour except Mr. Dilay, but with a ceiling of P5,000 per month per person. This year, the hourly demand is expected to be 12 applications per hour due to the increase in car sales last year. Here are some guidelines to identify problems, generate solution, and quantify net benefit. Draw the precedence diagram for the operation What are the designed hourly capacity per person designed hourly capacity of the service line ? What is the expected hourly demand for the service line? How much overtime (in hours and in pesos) is expected to be rendered by the line? If the line does not render overtime, how many customers will be dissatisfied?Explanation / Answer
Q.2 Hourly capacity per person
After seeing the table value given it was found out that Operation 3 is the bottleneck and taking max time i.e. 8 minutes.
So, Capacity per Hour = Total time available (1 hour) / bottleneck time = Cycle time
Capacity / hr = 60 minutes/ 8 minutes = 7.5 applications per hour
Total persons doing all the 6 operations are 7
means capacity per person = 7.5 /7 = 1.07 applications/person
(ii) hourly capacity of the line is 7.5 applications per hr
Q.3 Expected hourly demand to the line is 12 applications per year
Q.4 Overtime needed (hours)
Requirement = 12 ; doing = 7.5
Gap = 4.5 applications
Overtime needed = 4.5/ 7.5 = 0.6 hours
At present charging 385 pesos per hour and overtime in pesos will be based on the addition of one person at the stage of operation3.
Means extra amt of 55 pesos will be required.