HW2 – Matteo Bonadies - 2019952564

Q1. For the two companies of your choice in Problem Set 1, compare their flow times by
considering their income statement and balance sheet.

DELIVEROO

Revenues/account and notes receivable (2017) = 14,07

Average time = 365/14,07=25,94
SOURCE: https://craft.co/deliveroo
JUST EAT (unable to find Glovo Financial Statement)
Revenues/account and notes receivable (2018) = 358.4/ 24.7 = 14,5
Average time = 365/14,5=25,17
Source: https://www.justeatplc.com/investors/results-reports

Q2. Ch3 Exercise 3.4

A hospital emergency room (ER) is currently organized so that all patients register through
an initial check-in process. At his or her turn, each patient is seen by a doctor and then
exits the process, either with a prescription or with admission to the hospital. Currently, 55
people per hour arrive at the ER, 10 percent of who are admitted to the hospital. On
average, 7 people are waiting to be registered and 34 are registered and waiting to see a
doctor. The registration process takes, on average, 2 minutes per patient. Among patients
who receive prescriptions, average time spent with a doctor is 5 minutes. Among those
admitted to the hospital, average time is 30 minutes.
On average, how long does a patient spend in the ER?
On average, how many patients are being examined by doctors?
On average, how many patients are there in the ER?
Assume the process to be stable; that is, average inflow rate equals average outflow rate.

Waiting time in buffer = 7/55 hr = 0.127 hour = 7.6 minutes.

Average inventory in registration = (55*2)/60= 1.83 people
Waiting time in buffer= 34/55 hr = 0.62 hour = 37.1 minutes.
Doctor time: 0.9*5+0.1*30=7.5
Time admission to hospital = 7.6+2+37.1+30=76.7
Time prescription= 7.6+2+37.1+5=51.7

T= 0.1* 76.7+ 0.9 * 51.7= 54.2minutes.

I= R*T=5.5*0.5=2.75 patients
I= R*T =(49.5)*(5/60)=4.125 patient

Inventory doctor 2.75+4.125=6.875 patients.

Inventory ER  7+1.83+34+6.875=49.705 patients.

Q3. Ch3 Exercise 3.5

A triage system has been proposed for the ER described in Exercise 3.4. Under the
proposed triage plan, entering patients will be registered as before. They will then be
quickly examined by a nurse practitioner who will classify them as Simple Prescriptions or
Potential Admits. While Simple Prescriptions will move on to an area staffed for regular
care, Potential Admits will be taken to the emergency area. Planners anticipate that the
initial examination will take 3 minutes. They expect that, on average, 20 patients will be
waiting to register and 5 will be waiting to be seen by the triage nurse. Recall that
registration takes an average of 2 minutes per patient. The triage nurse is expected to take
an average of 1 minute per patient. Planners expect the Simple Prescriptions area to
have, on average, 15 patients waiting to be seen. As before, once a patient’s turn comes,
each will take 5 minutes of a doctor’s time. The hospital anticipates that, on average, the
emergency area will have only 1 patient waiting to be seen. As before, once that patient’s
turn comes, he or she will take 30 minutes of a doctor’s time. Assume that, as before, 90
percent of all patients are Simple Prescriptions. Assume, too, that the triage nurse is 100
percent accurate in making classifications.

Under the proposed plan, how long, on average, will a patient spend in the ER? 57.2 min
On average, how long will a Potential Admit spend in the ER? 30 min
On average, how many patients will be in the ER? 52.5
Assume the process to be stable; that is, average inflow rate equals average outflow rate.

Average number of patients in the system = 20+1.8+5+0.9+1+2.8+15+4.1 = 50.6

Average flow time = 50.6/(55/60) = 46.38

Q4. Ch3 Exercise 3.11

3.11 ABC Corporation’s consolidated income statement and balance sheet for the years
2011 and 2012 is shown in Table 3.9 (in thousands of dollars).
How do you think cash flow performance in 2011 compares with that of 2012 in the factory
as well as accounts receivable? Do you think 2012 is an improvement over 2011? Why?

2011:
Factory flow time = I/R = 20880/97380 = 0.2144 years
Accounts Receivables flow time = 21,596/99,621 = 0.2168 years

2012:
Factory flow time = I/R = 25200/98350 = 0.2562 years
Accounts Receivables flow time = 22,872/110,644 = 0.2067 years

In the factory, performance has worsened. On the other side, accounts receivables has
improved.

Moreover, the speed of the conversion of cost into cash has worsened, but net income has
increased, and ABC corporation is making more money.

Q5. Ch4 Exercise 4.3

The Evanstonian is an upscale independent hotel that caters to both business and leisure
travelers. When a guest calls room service at The Evanstonian, the room- service
manager takes down the order. The service manager then submits an order ticket to the
kitchen to begin preparing the food. She also gives an order to the sommelier (i.e., the
wine waiter) to fetch wine from the cellar and to prepare any other alcoholic beverages.
Finally, she assigns the order to a waiter.
It takes 4 minutes to take down the order and to assign the work to the kitchen, sommelier,
and waiter. It takes the kitchen 18 minutes to prepare the typical order. It takes the
sommelier 6 minutes to prepare the drinks for the order. While the kitchen and the
sommelier are doing their tasks, the waiter readies a cart (i.e., puts a tablecloth on the cart
and gathers silver- ware). This takes 10 minutes per order.
Once the food, wine, and cart are ready, the waiter delivers it to the guest’s room. It takes
the waiter 12 minutes to deliver the meal to the customer. It takes the waiter additional 4
minutes to return to the station and debit the guest’s account. All the times mentioned
represent flow time at the various activities and include the effects of waiting.

1. Draw a process map for the room-service process: from receipt of order to delivery
of food
2. What is the flow time of the process? 34 min, because food is the bottleneck
3. What is the effect on the process flow time if the waiter could prepare the cart in 8
minutes, instead of 10? It doesn’t change because food and wine are prepared at
the same time, so the waiter preparing the cart in just 8 minutes of 10 will be waiting
for the food to be ready, which is still the bottleneck
4. What is the effect on the process flow time if the waiter could deliver the order in 10
minutes, instead of 12? The overall flow time will be 2 minutes less, so 32 min.
5. Now redefine the process to begin upon receipt of order, and end upon debit of
account. Repeat parts A and B

4 min
Order and
billing

4 min
 drink
food Preparing
cart
18 min 6 min. 10 min
10 min

delivery

12 min

Q6. Ch5 Exercise 5.3

Three hairstylists, François, Bernard, and Mimi, run Fast Service Hair Salon for busy
professionals in the Gold Coast area of downtown Chicago (see Figure 5.1). They stay
open from 6:45 a.m. to 9:00 p.m. in order to accommodate as many people’s work
schedules as possible. They perform only shampooing and hairstyling activities. On
average, it takes 10 minutes to shampoo, 15 minutes to style the hair, and 5 minutes to bill
the customer. When a customer arrives, he or she first checks in with the receptionist
(Bernard’s younger sister LuLu). This takes only 3 minutes. One of the three stylists then
take charge of the customer and performs all three activities—shampooing, styling, and
billing— consecutively.

1. What is the number of customers that can be serviced per hour in this hair salon? 6
customers

resource load capacity Persons Process

capacity
Receptionist 3 min 20 per hr 1 20/hr
Styler 30 min 2 per hr 3 6/hr

2. A customer of Fast Service Hair Salon, an operations specialist, has suggested that
the billing operation be transferred to LuLu. What would be the impact on the
theoretical capacity?

resource load capacity Persons Process

capacity
Receptionist 8 min 7.5 per hr 1 7.5/hr
and billing
Styler 25 min 2.4 per hr 3 7.2/hr