Assignment #2

Operations Management

Submitted By:

Mohammed Usama

70112155

SECTION (D)

Submitted To:

Sir Usman
 “State Automobile License Renewals”
Answer #1:

Step Activity Average time to Number

perform applications per
(seconds) hour (3600/
Average time to
perform
(seconds)
1 Review renewal 15 3600/15=240
application for
correctness
2 Process and 30 3600/30=120
record payment
3 Check file for 60 3600/30=60
violations and
restrictions
4 Conduct eye test 40 3600/30=90
5 Photograph 20 3600/20=180
applicant
6 issue temporary 30 3600/30=120
license

[Conversion from seconds to hours = (1 hour x 60 minutes x 60

seconds) = 3600]

Looking at the present configuration of the process, maximum of 60

applications can be handled per hour.
Answer #2:

Step Activity Average time to Number

perform applications per
(seconds) hour if the
second clerk is
added for step 3
1 Review renewal 15 240
application for
correctness
2 Process and 30 120
record payment
3 Check file for 60 60×2 = 120
violations and
restrictions
4 Conduct eye test 40 90
5 Photograph 20 180
applicant
6 issue temporary 30 120
license

Adding the second clerk in step 2, 90 number of applications can be

processed in an hour.
 Answer #3:

Step Activity Average Number of With

time to application second
perform produced/ clerk
hour/operator
(seconds)
1 2 3 4 5 6

1 Review 15 240 480 240 240 240 240 240

renewal
application
for
correctness
2 Process 30 120 120 240 120 120 120 120
and record
payment
3 Check file 60 60 60 60 120 60 60 60
for
violations
and
restrictions
4 Conduct 40 90 90 90 90 180 90 90
eye test

5 Photograph 20 180 180 180 180 180 360 180

applicant

6 issue 30 120 120 120 120 120 120 240

temporary
license
If we add second clerk in the step #5, photograph applicant, a total of 60
applicants can be processed in an hour according to the current
configuration.

Answer #4:

Activity Number Cost per TC per Hour

of hour
workers (given)

Review renewal 3 12 36
application for
correctness, Process
and record payments,
and Conduct eye test
(Step 1,2,4)
Check file for violations 2 12 24
and restrictions
Photograph applicant 1 16 16
Issue temporary license 1 18 18
Total 94

Total labor cost/hour = $94

Camera cost = $5

Total processing cost/hour = $99 [Labor cost + camera cost]

Cost Per Application = processing time/ capacity/hour

= $99/120

= $0.83 per application.