PA 4-4 Mr. K\'s is a very popular hair salon. It... Mr. K\'s is a very popular h

Question

PA 4-4 Mr. K's is a very popular hair salon. It... Mr. K's is a very popular hair salon. It offers high-quality hairstyling 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. (7 minutes) Activity 2: Wash and condition hair. (8 minutes) Activity 3: Neck, shoulder, and back stress release massage. (9 minutes) Activity 4: Design the hairstyle and do the hair. (29 minutes) Activity 5: Check out the guest. (2 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 3. S3 does activities 4 and 5 Instruction: Do not round your intermediate calculations. Round average labor utilization to 2 decimal places and all direct labor costs to 2 decimal places. a. What is the labor content? minutes per customer b. What is the average labor utilization? percent At a wage rate of $15 per hour, what is the cost of direct labor C. per customer per customer? Mr. K. considers hiring a new employee to help any one (and by each server. What would the new direct labor cost be Mr. K also contemplates redesigning the assignment of tasks Activity 5 from S3 to S1. What would the new direct labor cost d. only one) of the servers without changing the tasks performed per customer e to servers. For this, Mr. K is evaluating the reassignment of per customer be?

Explanation / Answer

a) labor content

Its the straightforward calculation of the addition of all the labor time= 7+8+9+29+2= 55 minutes= 55/60 = 0.92 hour

b) Labor content = 55 minutes

Idle time calculation

Server 1 can process 1/ 7 customers per minute

Server 2 can process 1/17 customers per minute

Server 3 can process 1/31 customers per minute

Server 3 is the bottleneck

Idle time for server 1 = 31-7 = 24minutes

idle time for server 2 = 31-17=14 minutes

Average labor utilization= Labor content/ labor content+idle time = 55/(55+24+14)= 0.59

c) Direct labor cost = $15per hour

There are three employee so total wage per hour= $15*3= $45

Direct labor cost= Total wage rate/ flow rate = $45/2(we have assumed flow rate = cbottleneck capacity per hour= 1/31*60)= $22.50 per customer

d) Hiring new employee the total labor cost per hour = $15*4=$60

Flow rate remains same as the time will be same flow rate = 2

Direct labor cost = $60/2 = $30 per customer

e) activity 5 assigned to server 1

Server 1 per hour capacity = 1/(7+2)= 1/9*60=6.67

Server 2 per hour capacity = 1/(17)*60 = 3.53

Server 3 per hour capcity = 1/29*60 = 2.07

So flow rate according to the botlle neck capacity = 2 customers per hour

So The direct labor cost = $15*3/2= $22.50 per customer

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