State Automobile License Renewals Operations
Jessica, the manager of an Atlanta branch office of the state Department of Motor Vehicles, attempted to perform an analysis of the driver's license renewal operations. Several procedural steps were to be performed in the process. After examining the license renewal process, she identified the six steps and associated times required to perform each step, as shown in the following table:
State Automobile License Renewals Process Times
STEP AVERAGE TIME (in seconds)
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1. Review renewal application for correctness 15
2. Process and record payment 30
3. Check file for violations and restrictions 60
4. Conduct eye test 40
5. Photograph applicant 20
6. Issue temporary license 30
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Jessica found that each step was assigned to a different person. Each application was through a same process in the sequence shown above. Jessica determined that her office should be prepared to accommodate the maximum demand of processing 120 renewal applicants per hour.
She observed that the work was unevenly divided among the clerks, and the clerk who was responsible for checking violations tended to shortcut her task to keep up with the other clerks. Long lines built up during the maximum demand periods. She also found that first 4 steps were handled by general clerks who were each paid $6.00 per hour, while Step-5 was performed by a photographer paid $8 per hour. Step 6, the issuing of a temporary license, was required by state policy to be handled by a uniformed motor vehicle officer. Officers were paid $9.00 per hour, but they could be assigned to any other job except photography.
A review of the jobs indicated that Step-1, reviewing the application for correctness, must be performed before any other step could be taken. Similarly, Step-6, issuing the temporary license, could not be performed until all the other steps were completed. The branch offices were charged $5 per hour for each camera to perform photography. Jessica was under severe pressure to increase productivity and reduce costs, but she was also told by the regional director of the Department of' Motor Vehicles that she had better accommodate the demand for renewals. Otherwise, "heads would roll."
DISCUSSION QUESTIONS:
1. What is the maximum number of applications per hour that can be handled by the present configuration of the process?
2. How many applications can be processed per hour if a second clerk is added to check for violations? (Make the assumptions you need for your answer.)
3. Assuming the addition of one more clerk, what is the maximum number of applications the process can handle?
4. How would you suggest modifying the process in order to accommodate 120 applications per hour?