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You are providing consulting services to the local motor vehicle registry, to advise them about how to increase productivity and reduce costs, while at the

You are providing consulting services to the local motor vehicle registry, to advise them about how to increase productivity and reduce costs, while at the same time ensuring that the drivers license renewal process can process up to 120 renewal applications per hour. You have gathered the following information during your preliminary review of the process. The steps in this process are currently done sequentially, in the order shown. The current process is staffed by 6 people

Step

Current Staffing

Pay

Notes

Ave. Time to Perform (Seconds)

  1. Review renewal application for completion and correctness

Clerk #1

$6/hr

This step MUST be done first; Officer could also do this step

15

  1. Process and record the payment

Clerk #2

$6/hr

Officer could also do this step

30

  1. Check drivers file for violations & restrictions

Clerk #3

$6/hr

This clerk tends to shortcut the task to keep up with others; Officer could also do this step

60

  1. Conduct the eye test

Clerk #4

$6/hr

Officer could also do this step

40

  1. Photograph the applicant

Photo-grapher

$8/hr + $5/hr for camera

This step MUST be done by Photographer

20

  1. Issue the license

Officer

$9/hr

This step MUST be done by Officer; and MUST be final step

30

  1. What is the maximum number of applications that this current process can handle per hour, and at what cost per hour? how many applications can be processed per hour if we add a second clerk to Step #3 (i.e. Check drivers file for violations & restrictions), what will the bottleneck then be, and what are the cost implications?
  2. Respecting the noted requirements for each step, how would you suggest modifying this process in order to accommodate the required number of applications per hour, at the lowest possible cost? Please show the new process, indicate the new bottleneck(s), and tally the revised cost/hour given this new process.

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