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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
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 next (the time required for each activity is shown in parentheses): Activity 1: Welcome a guest and offer homemade herb tea (10 minutes). 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 (21 minutes). Activity 5: Check out the guest (8 minutes). Three service employes (S1, S2, and S3) offer the services in a worker-paced line. The assignment of tasks to the service employees is the following: S1 does activity 1, S2 does activities 2 and 3, and S3 does activities 4 and 5. a. What is the labor content? Labor content minutes per customer b. What is the average labor utilization? Note: Round your final answer to 2 decimal places. Average labor utilization percent c. At a wage rate of $29 per hour, what is the cost of direct labor per customer? Note: Round your final answer to 2 decimal places. Cost of direct labor per customer d. Mr. K considers hiring a new employee to help any one (and only one) of the servers without changing the tasks performed by each server. What will be the new cost of direct labor? Note: Round your final answer to 2 decimal places. New cost of direct labor per customer e. Returning to the three-worker scenario, Mr. K contemplates redesigning the assignment of tasks to servers. For this, Mr. K is evaluating the reassignment of Activity 5 from $3 to $1. What will be the new cost of direct labor? Note: Round your final answer to 2 decimal places. New cost of direct labor per customer
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