Question
Question 12 Glam Co is a hairdressing salon which provides both cuts and treatment to clients. All cuts and treatment at the salon are carried
Question 12
Glam Co is a hairdressing salon which provides both cuts and treatment to clients. All cuts and treatment at the salon are carried out by one of the salons three senior stylist. The salon also has two salon assistants and two junior stylists.
Every customer attending the salon is first seen by a salon assistant, who washes their hair; next, by senior stylist, who cut or treats the hair depending on which service the customer wants; then finally, a junior stylist who dries their hair. The average length of time spent with each member of staff is as follows:
Cut Treatment
Hours Hours
Assistant 0.1 0.3
Senior stylist 1 1.5
Junior stylist 0.5 0.5
The salon is open for eight hours each day for six days per week. It is also closed for two weeks each year. Staff salaries are GHS40,000 each year for senior stylists, GHS28,000 each year for junior stylist and GHS12,000 each year for the assistants. The cost of cleaning products applied when washing the hair is GHS0.60 per client. The cost of all additional products applied during a treatment is GHS7.40 per client. Other salon cost (excluding labour and raw materials) amount to GHS106,400 each year. Glam Co charges GHS60 for each cut and GHS110 for each treatment.
Required
- Identify the bottleneck activity in the company
- Calculate the throughput accounting ratio (TPAR) for cuts and the TPAR for treatment assuming the bottleneck activity is fully utilized.
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