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Mrs. Li is a very popular hair salon. It offers high-quality hair-styling and physical relaxation services at a reasonab

Posted: Sun Jul 03, 2022 5:22 pm
by answerhappygod
Mrs. Li is a very popular hair salon. It offers high-qualityhair-styling and physical relaxation services at a reasonableprice, so it always has unlimited demand. The service processincludes five activities that are conducted in the sequencedescribed below. (The time required for each activity is shown inparenthesis):
Activity 1: Welcome a guest and offer homemade herb tea. (10minutes) Activity 2: Wash and condition hair. (10 minutes)Activity 3: Neck, shoulder, and back stress release massage. (10minutes) Activity 4: Design the hair style and do the hair. (25minutes) Activity 5: Check out the guest. (5 minutes)
Three servers (S1, S2, and S3) offer the services in aworker-paced line. The assignment of tasks to servers is thefollowing: S1 does Activity 1. S2 does Activities 2 and Activity 3.S3 does Activities 4 and Activity 5.
a) Which server is the bottleneck of the process?
b) What is the utilization of server 2?
c) What is the average labor utilization of the servers? Assumethe process operates at its capacity.
d) Assume a wage rate of $18 per hour. What are the direct laborcosts for one guest?
e) To increase the service rate, Mrs. Li is considering twoalternatives:
Alternative I: To hire a new employee to help anyone (and onlyone) of the servers without changing the tasks performed by eachserver.
Alternative II: To redesign the assignment of tasks to servers.For this, Mrs. Lis is evaluating to reassign Activity 5 from S3 toS1.
What would be the costs of direct labor of serving one guestunder each of the two alternatives? Assume that the system operatesat its capacity. Explain why?