Renewing Your License! Rosa Patel, the manager of a branch office of the state DMV, has been directed to analyze the driver's license-renewal operations and make recommendations for improvement. In preparation for this assignment, she has observed the license-renewal process and identified the key steps and the times required to perform them as shown in the following table: 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 30 65 45 20 35 Patel has found that each step is assigned to a different person. Each application must go through each of the steps shown above in the order shown. She has observed that work was unevenly divided among clerks and that the clerk responsible for checking violations tends to shortcut her task to keep up with the others. Long lines build up during the maximum-demand periods. Patel notes that Steps 1 to 4 are handled by general clerks who are each paid $20 per hour. Step 5 is performed by a photographer paid $30 per hour. (Branch offices are charged $20 per hour for each camera to perform photography.) Step 6, issuing temporary licenses, is required by state policy to be handled by uniformed motor vehicle officers. Officers are paid $25 per hour and can be assigned to any job except photography. Patel is under severe pressure to increase productivity and reduce costs, but she has also been told by the regional director that the process should be able to handle 120 renewal applicants per hour. Otherwise, "heads would roll." a. What is the maximum number of applications per hour that can be handled by the present configuration of the process? b. With your answer to (a), what is the cost per application? c. How many applications can be processed per hour if a second clerk is added to check for violations? This second clerk will have her own window and the renewal applicant will go to one of the two clerks (whichever is free). d. How should Rosa modify the process to accommodate 120 applications per hour? What is the cost per application of this new configuration? Rosa can hire more people at the pay rates shown above but she has to be careful