Eastern University is modernizing its ID system. Beginning this term, all faculty, staff, and students will be required to carry a “smart” identification card, called a student passport. What makes it smart is a magnetic strip with information on club memberships, library usage, class schedules (for taking exams), restrictions (such as no alcohol), medical insurance, emergency contacts, and medical conditions. If desired, it can also be set up as a debit card to pay fines or purchase items from the bookstore, vending machines, cash machines, copy machines, and several local retailers. University administrators are excited about the revenue potential and increased control of the passport, but they are not looking forward to the process of issuing approximately 60,000 new cards. If applicants could be processed at the rate of 60 an hour, the entire university could be issued passports in a month’s time (with a little overtime). The steps in the process and approximate times follow. Steps 1 and 2 must be completed before Step 3 can begin. 1. How can Workout update its facility to attract new customers? What additional equipment or services would you suggest? How could something as simple as revising the layout help? 2. It is your job to design a new layout for Workout Plus. Visit a nearby gym to get ideas. Watch the customer flow, unused space, and bottlenecks. What aspects of a process layout do you see? a product layout? cells? Draw a simple diagram of your proposed layout. (Provide more details than the original layout.) How does your layout respond to the comments collected by Shannon? Steps 3 and 4 must precede Step 5, and Step 5 must be completed before Step 6. Steps in Process Time 1. Review application for correctness. 10 seconds 2. Verify information and check for outstanding debt. 60 seconds 3. Process and record payment. 30 seconds 4. Take photo. 20 seconds 5. Attach photo and laminate. 10 seconds 6. Magnetize and issue passport. 10 seconds a. Is it possible to process one applicant every minute? Explain. b. How would you assign tasks to workers to process 60 applicants an hour? c. How many workers are required? How efficient is your line?
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