HW2
HW2
HW2
Q1. For the two companies of your choice in Problem Set 1, compare their flow times by
considering their income statement and balance sheet.
DELIVEROO
I= R*T=5.5*0.5=2.75 patients
I= R*T =(49.5)*(5/60)=4.125 patient
Under the proposed plan, how long, on average, will a patient spend in the ER? 57.2 min
On average, how long will a Potential Admit spend in the ER? 30 min
On average, how many patients will be in the ER? 52.5
Assume the process to be stable; that is, average inflow rate equals average outflow rate.
2011:
Factory flow time = I/R = 20880/97380 = 0.2144 years
Accounts Receivables flow time = 21,596/99,621 = 0.2168 years
2012:
Factory flow time = I/R = 25200/98350 = 0.2562 years
Accounts Receivables flow time = 22,872/110,644 = 0.2067 years
In the factory, performance has worsened. On the other side, accounts receivables has
improved.
Moreover, the speed of the conversion of cost into cash has worsened, but net income has
increased, and ABC corporation is making more money.
The Evanstonian is an upscale independent hotel that caters to both business and leisure
travelers. When a guest calls room service at The Evanstonian, the room- service
manager takes down the order. The service manager then submits an order ticket to the
kitchen to begin preparing the food. She also gives an order to the sommelier (i.e., the
wine waiter) to fetch wine from the cellar and to prepare any other alcoholic beverages.
Finally, she assigns the order to a waiter.
It takes 4 minutes to take down the order and to assign the work to the kitchen, sommelier,
and waiter. It takes the kitchen 18 minutes to prepare the typical order. It takes the
sommelier 6 minutes to prepare the drinks for the order. While the kitchen and the
sommelier are doing their tasks, the waiter readies a cart (i.e., puts a tablecloth on the cart
and gathers silver- ware). This takes 10 minutes per order.
Once the food, wine, and cart are ready, the waiter delivers it to the guest’s room. It takes
the waiter 12 minutes to deliver the meal to the customer. It takes the waiter additional 4
minutes to return to the station and debit the guest’s account. All the times mentioned
represent flow time at the various activities and include the effects of waiting.
1. Draw a process map for the room-service process: from receipt of order to delivery
of food
2. What is the flow time of the process? 34 min, because food is the bottleneck
3. What is the effect on the process flow time if the waiter could prepare the cart in 8
minutes, instead of 10? It doesn’t change because food and wine are prepared at
the same time, so the waiter preparing the cart in just 8 minutes of 10 will be waiting
for the food to be ready, which is still the bottleneck
4. What is the effect on the process flow time if the waiter could deliver the order in 10
minutes, instead of 12? The overall flow time will be 2 minutes less, so 32 min.
5. Now redefine the process to begin upon receipt of order, and end upon debit of
account. Repeat parts A and B
4 min
Order and
billing
4 min
drink
food Preparing
cart
18 min 6 min. 10 min
10 min
delivery
12 min
Three hairstylists, François, Bernard, and Mimi, run Fast Service Hair Salon for busy
professionals in the Gold Coast area of downtown Chicago (see Figure 5.1). They stay
open from 6:45 a.m. to 9:00 p.m. in order to accommodate as many people’s work
schedules as possible. They perform only shampooing and hairstyling activities. On
average, it takes 10 minutes to shampoo, 15 minutes to style the hair, and 5 minutes to bill
the customer. When a customer arrives, he or she first checks in with the receptionist
(Bernard’s younger sister LuLu). This takes only 3 minutes. One of the three stylists then
take charge of the customer and performs all three activities—shampooing, styling, and
billing— consecutively.
1. What is the number of customers that can be serviced per hour in this hair salon? 6
customers
2. A customer of Fast Service Hair Salon, an operations specialist, has suggested that
the billing operation be transferred to LuLu. What would be the impact on the
theoretical capacity?