Driver's License Renewal Operations Carina Lance, a regional manager of her state department of motor vehicles (DMV), attempted to analyze the driver's license-renewal operations because of an increase in customer complaints about long renewal process times. During her examination of the license-renewal process, she identified the various process steps and the time required to perform each step (see data in Table 1). Table 1: State Automobile License Renewal Process Times STEP 1. Review renewal application for correctness 2. Process and record payment 3. Check file for violations and restrictions 4. Conduct eye test 5. Photograph applicant 6. Issue temporary license AVERAGE TIME TO PERFORM (sec) 20 35 55 40 25 30 Carina found that each step was assigned to a different person and each application was a separate process following the sequence shown in Table 1. She determined that her office should be prepared to accommodate a maximum demand of processing 125 renewal applicants per hour. She observed that work was unevenly divided among clerks and that the clerk responsible for checking violations tended to shortcut her task to keep up with the others. As a result, long lines developed during the peak-demand periods. Carina also found that Steps 1 through 4 were handled by general clerks who were each paid $23 per hour. While Step 5 was performed by a photographer who was paid $30 per hour Additionally, branch offices were charged $30 per hour for each camera to perform photography, Furthermore, Step b was required by state policy to be handled by uniformed DMV officers who were paid $38 per hour but could be assigned to any job except photography. A review of the jobs indicated that Step 1 (reviewing applications for correctness) had to be performed before any other step could be taken. Similarly, Step 6 (ssuing temporary licenses) could not be performed until all the other steps were completed. Carina was under severe pressure to increase productivity and reduce costs, but she was also told by the regional director that she must accommodate the demand for renewals, otherwise, there would be neganve repercussions to deal with. Discussion Questions 1. Construct a diagram illustrating the present configuration of the process and calculate the maximum number of applications per hour that can be handled by this configuration. 2. How many applications must be processed per hour to meet the current renewal demand? 3. How many applications can be processed per hour if a second clerk is added to the bottleneck station? 4. Using the original personnel, identify at least one way to combine stations to increase the maximum number of applications the process can handle, making sure you explicitly state any reasonable assumphons made when coming up with the new configuration. a. Mustrate the alternate configuration. b. Calculate the new output per hour How would you suggest modifying the process to accommodate 125 applications per nour? Inis may include turing more staff Keep in mind, if a second photographer is needed, a second camera would be needed as well.) austrate the alternate configuration you would recommend b. Show how you would calculate the cycle time c. Calculate the ethiciency of the conneration. 9. Laculate the cold patt aber of this new configuration. Note: You must show your illustrations and the calculations for each question within your case report document.

Driver's License Renewal Operations Carna Lance, a regional manager of her state department of motor vehicles (DMV), attempted to analyze the driver's license-renewal operatons because of an increase in customer complaints about long renewal process times. During her examination of the license-renewal process, she identhed the various process steps and the time required to perform each step (see data in Table 1)