Session 11 - Onnie Jewelers

Onnie Jewlers

As always, we begin with a size-up

Size up

• PEST

Competitive Priorities

• Cost
• Quality
• Flexibility
• Delivery/Service

Process Flow Analysis

First we choose out units:

• Flow unit: customer
• Time unit: min
• Capacity: customer/hour

Activity	Num Workers	Cycle Time	Capacity	Demand	Utilization
Greeting	1	$0.5$ min/c	$12$ c/hr
Bar	1	$0.75$ min/c	$80$ c/hr
Sales	4	$5\min /4\mathrm{c}=1.25$ min/c	$48$ c/hr
Receipts	1	$1.5$ min/c	$40$ c/hr
Payments	1	$0.85$ min/c	$\approx 70.6$ c/hr

Cycle time calculation for Payments

We know that $70\%$ of people pay by card and require a terminal, a total time of $1$ min. The remaining $30\%$ pay by cash, taking $0.5$ min. Taking a weighted average, we have:

$$\mathrm{Cycle}\mathrm{Time}=0.7\times 1+0.3\times 0.5=0.85min/c$$