Question

QUESTION 2 One Hour Loan offers customized loans. Customers call a toll free number with a specific loan request, and obtain a response within an hour One Hour Loan's business process includes tv sequence described below. (Theme required for each activity is shown in parenthesis: which must be conducted Activity 1. Answer customer call and record key information 4 minutes) Activity 2: Other and format the information obtain credit scores, organize Bustomer specie need for analysis 5 minutes Activity 3: Analyze the information. Check the credit worthiness and decide loan amount and APR to offer (11 minutes Activity 4: Perform final checks on loan offer 2 minutes Activity 5: Call customer back with the new loan offer and close 2 minutes) The whole process is conducted by the workers in a worker paced in The m ent of tasks to work is the following: w does Activity 1 W2 does Activities 2 and 3 W3 does Activities 4 and 5. How much time will take to process 100 loans? Assume that the proces starts with an empty production line

Answer 1

First, we need to find the capacity of each worker in terms of Loans/hour

W1: (Activity 1)

Total time per loan = 4 mins

Capacity of W1 = 60/4 = 15 loans/hour

W2: (Activity 2 and 3)

Total time per loan = 5 + 11 = 16 mins

Capacity of W2 = 60/16 = 3.75 loans/hour

W3: (Activity 4 and 5)

Total time per loan = 2 + 2 = 4 mins

Capacity of W3 = 60/4 = 15 loans/hour

Process Capacity = Lowest Capacity of Worker = Capacity of W2 = 3.75 Loans/hour.

Time taken to process 100 loan application (T)

T = 100/Process Capacity = 100/3.75 = 26.67 hours or 1600 minutes