Katie Posh Runs An Upscale Nail Salon Service Process

Katie Posh Runs An Upscale Nail Salon The Service Process Includes Fi

Katie Posh runs an upscale nail salon. The service process includes five activities conducted in sequence: Welcome a guest (1 minute), Clip and file nails (3 minutes), Paint (5 minutes), Dry (10 minutes), and Check out the customer (4 minutes). Three servers (S1, S2, and S3) provide these services, with specific task assignments: S1 handles Activity 1, S2 handles Activities 2 and 3, and S3 handles Activities 4 and 5. The drying process does not require continuous attention from S3; she/he only escorts the customer to the drying chair, which takes negligible time. There is only one drying chair in the salon. Customers are admitted at the rate of the bottleneck process, assuming unlimited demand.

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The described nail salon process involves a series of sequential activities, each performed by designated staff members. To analyze this process, it is essential to identify the bottleneck, calculate server utilization, assess staff utilization, and estimate the labor costs per customer. This analysis provides insights into process efficiency and helps inform operational decisions to improve throughput and profitability.

Identifying the Bottleneck

The first step involves determining which activity limits the overall process flow. Each activity's duration affects the cycle time, and the activity with the longest processing time typically becomes the bottleneck in a process with serial steps. Here are the durations for each activity:

• Welcome a guest: 1 minute
• Clip and file nails: 3 minutes
• Paint: 5 minutes
• Dry: 10 minutes
• Check out: 4 minutes

Since the process is sequential, the activity with the longest duration determines the process's maximum throughput. The activity "Dry" takes 10 minutes, which surpasses the other activities. Therefore, the drying process constitutes the bottleneck of the process, primarily because it has the longest processing time and directly influences the overall throughput rate.

Calculating the Utilization of Server 2

Server 2 is responsible for Activities 2 and 3: clipping and filing nails (3 minutes) and painting (5 minutes). Each customer requires both these activities to be completed sequentially before proceeding to the next step. Since the process adheres to a worker-limited line, and the process is regulated by the bottleneck, the throughput rate is determined by the drying process.

The maximum number of customers handled per hour (throughput rate T) can be calculated based on the bottleneck activity: the drying process takes 10 minutes per customer, so the maximum throughput is:

 T = 60 minutes / 10 minutes = 6 customers per hour

In the same way, the utilization of Server 2 combines both activities. For activity 2 (clipping and filing), time per customer is 3 minutes; for activity 3 (painting), 5 minutes. Since they are sequential, total time per customer on Server 2 is:

 3 minutes + 5 minutes = 8 minutes

Given the throughput rate of 6 customers per hour, the utilization of Server 2 is calculated as:

 Utilization = (Time spent serving customers per hour) / (Total available time per hour)
= (6 customers * 8 minutes) / 60 minutes
= 48 minutes / 60 minutes
= 0.8 or 80%

Thus, Server 2 operates at 80% utilization, indicating a high workload level but not full capacity.

Average Labor Utilization of All Servers

To evaluate overall staff utilization, we consider each server's activity times relative to the overall process rate I.e., the bottleneck throughput. Server 1 handles only Activity 1, which takes 1 minute per customer. Server 3 handles Activities 4 and 5, with total time of 10 + 4 = 14 minutes per customer.

Calculations for individual servers:

• Server 1: 1 minute per customer; utilization at throughput rate:

 1 minute / (60 minutes / 6 customers) = 1 / 10 = 10%

 8 / 10 = 80%

 14 / 10 = 140%

Note that Server 3's utilization exceeds 100%, indicating capacity constraints, which suggests that the process cannot sustain the current demand without adjustments. Since Server 3's utilization exceeds 100%, either demand must be reduced, or additional capacity must be added to handle the workload effectively. The overall labor utilization averages to:

 (10% + 80% + 140%) / 3 ≈ 76.7%

This average indicates an overall high utilization rate, underscoring room for efficiency improvements.

Calculating Direct Labor Costs Per Customer

At a wage rate of $12 per hour, labor costs for each server per customer can be computed based on activity times and the number of servers involved.

Per customer labor time:

• Server 1: 1 minute = 1/60 hours
• Server 2: 8 minutes = 8/60 hours
• Server 3: 14 minutes = 14/60 hours

Labor costs per customer are thus:

 Server 1: (1/60 hours) * $12/hour = $0.20
Server 2: (8/60 hours) * $12/hour = $1.60
Server 3: (14/60 hours) * $12/hour = $2.80

The total direct labor cost per customer is the sum of individual costs:

 $0.20 + $1.60 + $2.80 = $4.60

Therefore, the direct labor costs for serving one customer are approximately $4.60, considering the active staff time allocated during the process.

Conclusion

Analyzing the process flow reveals that the drying activity serves as the bottleneck, limiting the overall throughput to about 6 customers per hour. Server 2 operates at 80% utilization, reflecting efficient workload distribution, whereas Server 3 experiences over-utilization, indicating capacity limitations that require process adjustment or staffing enhancements. The average labor utilization across all servers is approximately 76.7%, with labor costs per customer amounting to approximately $4.60 based on the specified wage rate. To optimize the process, the salon might consider adding resources to capacity-constrained areas, such as increasing drying staff or equipment, to elevate throughput and reduce staff idle times in non-bottleneck activities. Continuous process monitoring and capacity planning are essential to maintain high service quality and profitability while managing operational efficiencies effectively.

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