Then there are 3 minutes per application for

the exam, and 20 minutes for the road test.

There's a hidden assumption in here,

I have to reveal that we are really assuming there are enough computers so

that the computers will never become the bottleneck.

And so we can focus just on the 3 minutes that it takes the people

to administer the exam and get the people ready.

The next one is the number of people,

the number of resources at each of the three stations here.

There would be 4, then there would be 2, and then there would be 15.

And that allows us to compute the capacity and remember,

capacity is the number of resources divided by the processing time.

Now careful here that this is expressed in applications per minute.

And if you want to get to the capacity in terms of applications per day,

we to multiply this with the 60 minutes that are in an hour and

the 8 hours in a day that they work.

So that would be this cell here,

times 480 minutes in a day,

which gets me a daily capacity of 384.

All right, the next thing I have to figure out is demand, right?

So demand is, we know, for the identity check,

there are 400 people showing up to get the demand check, excuse me, identity check.

We have, on the process flow diagram,

a moment ago identified that there would be 396 coming to the written exam.

And then because of failure in the written exam,

there will be 336.6 people showing up for the road test, okay?

And so that allows us now to compute an implied utilization.

Remember, the implied utilization is the ratio between the amount and the capacity.

And that is 104% here, 123% here,

and 93% at the last step.

So you might now say, well look, wait a minute.

Really the identity, the capacity shortage at the identity check is

really keeping the flow from these people to the written exam,

because you have already a capacity constraint upstream to the written exam.

That doesn't matter for the implied utilization.

Implied utilization is demand by capacity.

And the most binding constraint on this process is where the implied utilization

is at its highest, and you see that that is at the written exam.

So this is going to be the constraint on the system.

That means that the system can only handle 320

applications per day that are going to be processed as a written exam.

Okay, so 320 folks can take the written exam.

And we know from the case, we know from the question,

that 85% of them will succeed and show up for the driver's test.

And then another 70% again will succeed of passing the road test.

And that leaves a total of 190.4 people who will succeed getting their licence,

acknowledging now that there is a capacity constraint.

All right, that concludes the review session.

You saw these four types of questions that I think I can ask you in the homework and

the exam.

And I hope I also reviewed the basic calculations and

definitions that we covered in this first module.