High-quality hair-styling and physical relation services

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Mr. K's is a very popular hair salon. It offers high-quality hair-styling and physical relation services at a reasonable prie, so it always has unlimited demand. The service process includes five activities that are conducted in the sequence described below. (The time required for each activity is shown in parenthesis):

Activity 1: Welcome a guest and offer homemade herb tea. (10 minutes)

Activity 2: Wash and condition hair. (10 minutes)

Activity 3: Neck, shoulder, and back stress release massage. (10 minutes)

Activity 4: Design the hair style and do the hair. (5 minutes)

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

Three serviers (S1, S2, and S3) offer the services in a worker-paced line. The assignment of tasks to servers is the following:

S1 does Activity 1

S2 does Activity 2 and 3

S3 does Activity 4 and Activity 5

a. Which server is the bottleneck of the process?

b. What is the process capacity based on the bottleneck?

c. How much idle time is there?

d. What is the utilization of server 2?

e. What is the average labor utilization of the servers? Assume the process operates at its capacity. Hint: think of labor content plus idle time.

f. Assume a wage rate of $18 per hour. What are the direct labor costs for one guest? Hint: How many people are working per hour? How many customers can they get through per hour?

Reference no: EM13785298

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