Mr. K’s is a very popular hair salon. It offers high-quality hair-styling and ph

Question

Mr. K’s is a very popular hair salon. It offers high-quality hair-styling and physical relaxation services at a reasonable price,so it always has unlimited demand. The service process includes five activities that are conducted in the sequence described below. (The time required for each activity is shown in parenthesis):

Activity 1: Welcome a guest and offer homemade herb tea. (10 minutes)

Activity 2: Wash and condition hair. (10 minutes)

Activity 3: Neck, shoulder, and back stress release massage. (10 minutes)

Activity 4: Design the hair style and do the hair. (25 minutes)

Activity 5: Check out the guest. (10 minutes)

Three servers (S1, S2, and S3) offer the services in a worker-paced line. The assignment of tasks to servers is the following:

S1 does Activity 1.

S2 does Activities 2 and Activity 3.

S3 does Activities 4 and Activity 5.

Assume a wage rate of $18 per hour. What are the direct labor costs (in $) for one guest? (The accuracy should be of two digits after the decimal places.)

Please include explanation.

Explanation / Answer

Time used by S1 per guest ( on activity 1 ) = 10 minutes

Time used by S2 per guest ( on activity 2 and 3 ) = 10 + 10 = 20 minutes

Time used by S3 per guest ( on activity 4 and 5 ) = 25 + 10 = 35 minutes

It is the bottleneck server which decides the overall capacity of a project . Bottleneck server is the one which has maximum processing time . It is server S3   which has the maximum processing time and hence is the bottleneck station.

Therefore capacity of the process ( same as capacity of the bottleneck server ) = 35 minutes / guest

Thus number of guests which will be served per hour = 60 / 35 guests

Total wages for 3 servers per hour = $18/ hour per server x 3 servers = $54

Hence,

Direct labour cost for one guest = Total wage per hour/ Number of guests served per hour = $ ( 54 x 35/60) = $ 31.5

DIRECT LABOR COST FOR ONE GUEST = $31.5

DIRECT LABOR COST FOR ONE GUEST = $31.5

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.