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)
—————————————————————————————————————-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
—————————————————————————————————————-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?
