State Automobile License Renewals

Victoria Aleksina

Sara Gibson

Larry Jernigan

TK Johnson

Eve Martin

Marney Sherrill

Introduction

Henry CoupeBranch manager

Analyze the current driver's license renewal

process

Increase productivity

Decrease cost Increase customer satisfaction

Process Flow ChartStep 1 2 3 4 5 6 7

Time Utilized

(in seconds)

% of TimeUtilized

Applicant 0 N/A

General Clerk 1 15 25%

General Clerk 2 30 50%

General Clerk 3 60 100%

General Clerk 4 40 67%

Photographer 20 33%

Officer 30 50%

Capacity Infinity 240 120 60 90 180 120 60RenewalCapacity

Time(in seconds)

0 15 30 60 40 20 30 195ProcessTime

bottleneckcontributory

issue

Review Application for Correctness

Process & Record

Payment

Check for Violations & Restrictions

Conduct Eye Test

Photograph Applicant

Issue Temporary

License

Complete Application

Analysis of the Situation• Primary issue is bottleneck at steps 3 and 4

resulting in low customer satisfaction, low employee productivity, and low employee morale.

• Secondary issue (and secondary bottleneck) is the eye exam. Delays affect the overall wait time and decrease the volume of renewals.

Goals and Objectives

Increase efficiency

Cut costs

Improve customer satisfactio

n

•120 renewal applications per hour

•Increase employee utilization to 70%

•Cut cost by 50%

Alternative Courses of Action

Change order/responsibility

of process tasks

•Reduce daily expenses by $96 and 60 seconds

Purchase camera system

•Reduce daily expenses by $288 •Camera system costs $2,488

Create two lines

•Combination of Option 1 and 2•Expenses total $9,360•Daily revenues $14,280

New designback wall

Clerk 4Clerk 1 Clerk 3Clerk 2 Officer Clerk 6

eye chart

table holding renewal applications,pens, & clipboards

wall for picture backdrop

camera & tripod

eye chart

wall for picture backdrop

Clerk 5

go to side with smallest line

Quality Management Definition: high volume (120) of processed renewals per hour high efficiency increase revenue while lower costs TQM & Dimensions of Quality: customer focus well-designed process performance dimension: meet goal efficiently, no short-cuts aesthetics dimension: space layout facilitate seamless process

Cost of Quality

External Failure

Long lines

Low customer satisfaction

Poka-yokes

Stickers reminding applicants and clerks to review data

Visual signs and verbal effort to direct traffic

Reminder to smile for clerks

Evaluation and ControlCurrent wait line analysis

Make the changes

Compare results

Ongoing evaluation

• Measures:

1. Average employee utilization

2. Average # of applicants in line and in the system

3. Average waiting time in line and in system

• During one week:

Analysis of the employee utilization, applicant wait lines, and applicant processing times.

• One month after the implementing the changes – another analysis covering one-week period.

Questions?