What is the process capacity in customers and hour

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Reference no: EM13954316

Mr. K’s is a hair salon whose service process includes six activities conducted in the sequence described below. (The time required for each activity is shown in parentheses):

Activity 1: Welcome guests and serve herb tea. (10 minutes)

Activity 2: Offer styling suggestions. (15 minutes)

Activity 3: Condition hair. (10 minutes)

Activity 4: Do the hair. (30 minutes)

Activity 5: Wash hair. (10 minutes)

Activity 6: Check out the guest. (5 minutes)

Three servers (S1, S2, and S3) offer the services in a worker-paced line. The assignment of tasks to servers is as the following: S1: Activity 1 and Activity 2. S2: Activity 3 and Activity 4. S3: Activity 5 and Activity 6.

1. What is the process capacity in [customers/hour]?

2. If the demand of Mr. K’s is one customer per hour, what is the average labor utilization (in %) of the servers?

3. Assume that Mr. K’s pays each worker an hourly wage of $18 per hour. What is the cost of direct labor in [$/customer] when the demand is one customer per hour?

Reference no: EM13954316

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