A Crew of Mechanics at the Highway Department Garage Repair

question 23

Essay

A crew of mechanics at the Highway Department garage repair vehicles that break down at an average of λ = 8 vehicles per day (approximately Poisson in nature). The mechanic crew can service an average of μ= 11 vehicles per day with a repair time distribution that approximates an exponential distribution. The crew cost is approximately $300 per day. The cost associated with lost productivity from the breakdown is estimated at $150 per vehicle per day (or any fraction thereof). Which is cheaper, the existing system with one service crew, or a revised system with two service crews?

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Definitions:

Performance Management

A continuous process by which managers and employees work together to plan, monitor, and review an individual's work objectives and overall contribution to the organization.

Biased Source

A source of information that shows prejudice towards one side of an argument or issue, often leading to a lack of impartiality.

Performance Information

Data and metrics related to the effectiveness and efficiency of an employee's or organization's work performance.

Power Relationships

The dynamics of control, influence, and authority among individuals and groups within an organization or society.