Final Exam Operations Management 426-Fall 2017 THe Bus siness Case: Making the D

Question

Final Exam Operations Management 426-Fall 2017 THe Bus siness Case: Making the Decision Mr K's is a very popular hair salon located in downtown Denver in a major shopping mall It offers high-quality Shampoo, Scalp Me reasonable price ($35), so it always has unlimited demand. ssage and Blow out services at as The service process includes 5 activities that are conducted in sequence described below (the time required for each activity is shown in parentheses): activity 1: Welcome a guest and offer homemade herb tea (10 min]: activity 2 Wash and condition hair (10 minutes]: activity 3; Neck, shoulder, and back stress release massage (10 minutes): activity 4: Design the hairstyle and do the hair (20 minutes] activity 5; Ring up the guest bil (5 minutes]. Each activity has one employee dedicated to it. For the following the question, assume unlimited demand. Also assume the employee at activity 1 only admits new guest at the rate of the bottleneck. 1. Draw a process flow diagram (a graphical way to describe the process) 2. What resource is the bottleneck? 3. What is the capacity of the pracess? 4. What is the low rate? 5. What is the cycle time? Using the data in the chart below What day of the week is the busiest? What day of the week is the slowest? Number of Customers Showing Up at the Salon Week Day of the Week 1 Monday Tuesday Wednesday Thursday Friday 104 104 105

Explanation / Answer

The process flow diagram as follows :

Welcome a guest and offer homemade herb tea ( 10 minutes)

Wash and condition air ( 10 minutes)

Neck , shoulder and back stress release massage ( 10 minutes)

Design the hairstyle and do the hair ( 20 minutes )

Ring up the guest bill ( 5 minutes)

The bottleneck resource is the one which has the maximum processing time. In the given case, Design the hairstyle and do the air has the maximum processing time of 20 minutes and hence is the Bottleneck resource.

Capacity of the process is determined by processing time of the bottleneck process. Therefore , the process can handle = 60 minutes/ 20 minutes = 3 customers per hour

Flow rate is defined as minimum of demand and process capacity . Since it is mentioned that “employee at activity 1 only admits new guest at the rate of bottleneck”. In the given case , Capacity of the process = demand.

Therefore , Flow rate of the process = Process capacity = 20 minutes / customer

Cycle time is the The period required to complete one cycle of an operation; or to complete a function, job, or task from start to finish. Cycle time is used in differentiating total duration of a process from its run time.

Thus, Cycle time in this case ( sum of time of 5 activities)

= 10 + 10 + 10 + 20 + 5

= 55 minutes

Welcome a guest and offer homemade herb tea ( 10 minutes)

Wash and condition air ( 10 minutes)

Neck , shoulder and back stress release massage ( 10 minutes)

Design the hairstyle and do the hair ( 20 minutes )

Ring up the guest bill ( 5 minutes)

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