1. An attempt to perform an analysis of the driver\'s license renewal operations
ID: 469686 • Letter: 1
Question
1. An attempt to perform an analysis of the driver's license renewal operations at a local DMV was conducted by a consultant. Several steps were to be performed in the process. After examining the license renewal process, the consultant identified the steps and associated times required to perform each step as shown in Table. The consultant found that each step was assigned to a different person. Each application was a separate process in the sequence shown below.
Step
Average Time
to Perform Task (seconds)
1. Review renewal application for correctness
15
2. Process and record payment
30
3. Check file for violations and restrictions
60
4. Conduct eye test
40
5. Photograph applicant
20
6. Issue temporary license
30
The consultant determined that the office should be prepared to accommodate the maximum demand of processing 120 renewal applicants per hour. The consultant observed that the work was unevenly divided among the clerks, and the clerk who was responsible for checking violations tended to shortcut her task to keep up with the other clerks. Long lines built up during the maximum demand periods.
The consultant also found that steps 1, 2, 3, and 4 were handled by general clerks who were each paid $12.00 per hour. Step 5 was by a photographer paid $16.00 per hour. The branch offices were charged $10.00 per hour for each camera to perform photography. Step 6, the issuing of temporary license, was required by state policy to be handled by a uniformed motor vehicle officer. Officers were paid $18.00 per hour, but they could be assigned to any jobs except photography (step 5).
A review of the jobs indicated that step 1(reviewing the application for correctness) had to be performed before any other step could be taken. Similarly, step 6, issuing the temporary license, could not be performed until all the other steps were completed.
The consultant was under severe pressure to increase productivity and reduce costs, but he was also told by the regional director of the DMV that he had better accommodate the demand for renewals. Otherwise "heads would roll." within the company. At present, the consultant is seeking answers for the following questions.
a. What is the maximum number of applications per hour that can be handled by the present configuration of the process?
b. How many applications can be processed per hour if a second clerk is added to check for violations?
c. Additionally, how would you suggest modifying the process in order to accommodate 120 applications per hour? You are free to add resources and/or combine steps. Justify your solutions and/or rationale.
Step
Average Time
to Perform Task (seconds)
1. Review renewal application for correctness
15
2. Process and record payment
30
3. Check file for violations and restrictions
60
4. Conduct eye test
40
5. Photograph applicant
20
6. Issue temporary license
30
Explanation / Answer
a). At present the bottleneck process is (3) , which takes 60 seconds to complete. Therefore the maximum number of applications per hout that can be handled by the present configuration is 3600/60 = 60 per hour.
b). if a second clerk is added to check for violations, then the service rate will double and processing time will reduce to 30 seconds per application. However, process 4 will become the bottleneck process now taking 40 seconds to complete. Consequently the capacity of the centre will be 3600/40 = 90 applications per hour.
c). For required throughput of 120 applications, the bottleneck rate has to be 3600/120 - 30 seconds. We need to add an additional resource for process 3, that will reduce the bottleneck rate, rb to 40 seconds, (As determined in part b) Process 4 and 5 need to be combined, so that 2 resources are available to conduct the eye test and photograph the applicants, so that the total time for the process is 60 seconds and there are two resources, making the effective bottleneck rate to 30 (=60/2) seconds. By making these two changes, the capacity of the centre can be increased to process 120 applications per hour.
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