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QUESTION

State Automobile License Renewals.

State Automobile License Renewals.Henry Coupe, the manager of a metropolitan branch office of the state Department of Motor Vehicles, attempted to perform an analysis of the driver's license renewal process operations. Several steps were to be performed in the process. After examining the license renewal process, he identified the steps and associated times required to perform each step, as shown in the following table:StepAverage time to perform (seconds)1. Review renewal application for correctness152. Process and record payment303. Check file for violations and restrictions604. Conduct eye test405. Photograph applicant206. Issues temporary license30Coupe found that each step was assigned to a different person.Each application was a seperate process in the sequence shown. He determined that his office should be prepared to accommodate a maximum demand of processing 120 renewal applicant per hour. He observed that the work was unevenly divided among the clerks, and the clerk who was responsible for checking violations tended to shortcut her task to keep up with the other clerks. Long lines built up during the maximum demand periods.Couple has also found that steps 1 to 4 were handled by general clerks who were paid $12.00 per hour. Step 5 was performed by a photographer paid $16.00 per hour. Step 6, the issuing of a temporary license, was required by state policy to be handled by a uniformed motor vehicle officer. Officers were paid $18.00 per hour, but they could be assigned to any job except photography (photography can only performed by a photographer, however, photographer can also be assigned to other tasks). The branch offices were charged $10 per hour for each camera to perform photography.Henry coupe was under severe pressure to increase productivity and reduce costs but he was also told by the regional director that must accommodate the demand for renewals. Otherwise, "heads would roll".A review of the application for correctness indicated in step 1 has to be performed before any other step could be taken. Similarly, step 6, issuing the temporary license, could not be performed until all other steps were completed. a)What is the maximum number of application 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 could be added anywhere you choose (and not necessarily to check for violations 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 application per hour? What is the cost per appliication of this new configuration?

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