Mr. K’s is a very popular hair salon. It offers high-quality hairstyling and physical relaxation services at a reasonable price, so it always has unlimited demand. The service process includes five activities that are conducted in the sequence described next (the time required for each activity is shown in parentheses): 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 hairstyle and do the hair (25 minutes). Activity 5: Check out the guest (6 minutes).Three servers (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 activities 2 and 3, and S3 does activities 4 and 5. a. What is the labor content? b. What is the average labor utilization? c. At a wage rate of $15 per hour, what is the cost of direct labor per customer? d. Mr. K considers hiring a new employee to help any one (and only one) of the servers without changing the tasks performed by each server. How would this change his cost of direct labor? e. Mr. K also contemplates redesigning the assignment of tasks to servers. For this, Mr. K is evaluating the reassignment of activity 5 from S3 to S1. How would this change his cost of direct labor?
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Mr. K’s is a very popular hair salon. It offers high-quality hairstyling and physical relaxation ser...
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