State Automobile Licence Renewals

Automobile License Renewals

Henry coupe, the manager of a metropolitan branch of fice the state

Department of Motor Vehicles, at tempted to analyze the driver's

license-renewal operations. He had to perform several steps. After examining

the license-renewal process, he identified those steps and associated times

required to perform each step, as shown in the following table:

State Automobil Ucense Renewals Process Times

Step Average Time to Perform (seconds)

1. Review renewal application for correctness

2. proeess and record payment

3. Check file for violations and restrictions

4. Conduct eye test

5. Photograph applicant

6. Issue temporary license

15

30

60

40

20

30

Coupe found that each step was assigned to a dif ferent person. Each

application was a separate process in the sequence shown above. He determined

that his office should be prepared to accommodate a maximum demand of

processing 120 renewal applicants per hour.

He observed that work was unevenly divided among clerks and that the clerk

responsible for check ing violations tended to shortcut her task to keep

up with the others. Long lines built up during the maxi mum-demand periods.

Coupe also found that steps 1 to 4 were handled by general clerks who were

each paid $6 per hour. Step 5 was performed by a photographer paid $8 per

hour. (Branch offices were charged $5 per hour for each camera to perform

photography.) Step 6, issuing tem porary licenses, was required by state

policy to be han dled by uniformed motor vehicle officers. Officers were

paid $9 per hour but could be assigned to any job except photography.

A review of the jobs indicated that step I, review ing applications for

correctness, had to be performed before any other step could be taken.

Similarly, step 6, issuing temporary licenses, could not be performed until

all the other steps were completed.

Henry Coupe was under severe pressure to increase productivity and reduce

costs, but he was also told by the regional director that he must accommodate

the de mand 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 configura tion of the process?

2. How many applications can be processed hour if a second clerk is added to

check for violations?

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?

THE ANSWER OF CASE STUDY

1. What is the maximum number of applications per hour that can be handled by the present

configuration of the process?

The process times and activities for each activity are identical because all have only one

station. The maximum output of renewals will be limited to 60 renewals/hour (3600 sec/hr + 60

sec/renewal) by the bottleneck or longest process time.

If each step in the process is handled by one person. it can be seen that each station will

be waiting for the clerk who checks the file for violations. This is because this step

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