Hanafi is the manager of Terengganu state department of motor vehicles. He is reviewing the existing drivers license-renewal operations. The renewal process undertaken in several steps. After examining the license-renewal process, he identified those steps and associated times required to perform each step, as shown in the following table:

State Automobile License Renewal Process Times

step	Times AVERAGE TIME TO STEP PERFORM (sec)
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

Hanafi found that each step was assigned to a different person. Each application was a separate process in the sequence shown. He determined that his office should be prepared to accommodate a maximum demand of processing 120 renewal applicants per hour. Hanafi also found that Steps 1 to 4 were handled by general clerks who were each paid $12 per hour. Step 5 was performed by a photographer

paid $16 per hour. Branch offices were charged $10 per hour for each camera to perform photography.

Step 6, issuing temporary licenses, was required by state policy to be handled by uniformed motor vehicle officers. Officers were paid $18 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, issuing temporary licenses, could not be performed until all the other steps were completed. Hanafi was under severe pressure to increase productivity and reduce costs, but he was also told by the regional director that he must accommodate the demand for renewals. Otherwise, heads would roll.

QUESTIONS:

a. How many clerks to be added in total and to which work station each is to be added in order to accommodate the office maximum demand for processing renewal applications?

b. Draw the layout for the proposed configuration of the process that would enable the office to accommodate the office maximum demand for processing renewal application (proposed in c).

c. What is the amount of the throughput time of this new configuration?

d. What is the cost per application of this new configuration?

State Automobile License Renewal Process Times AVERAGE TIME TO STEP PERFORM (sec) 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