PA 3-7 A small mortgage lender has one receptionist... A small mortgage lender h
ID: 419722 • Letter: P
Question
PA 3-7 A small mortgage lender has one receptionist... A small mortgage lender has one receptionist, four loan officers, and two office managers. When applicants apply for a new loan in person, they first fill out paperwork with the receptionist. Then the applicants meet with one of the loan officers to discuss their needs. The loan officer spends additional time processing the application after the applicants leave the office. Finally, the application must be reviewed by an office manager before it can be approved. The following table lists the processing times at each stage. The office is open for eight hours per day, five days per week. Staffing (Number of Employees) Activity Time (Hours per Loan) Resource Receptionist Loan officers Office managers 4 2 4 Round "Utilization rate" to a whole percent. a. What is the bottleneck of the process? Assuming unlimited demand, what is the process flow rate (in loans per week)? loans per week If the customer demand is 18 loans per week, what is the utilization of the office managers resource? percent Assuming that the office currently has no backlog of d. loans that it is processing, how long will it take to hours complete 10 loans?Explanation / Answer
a)
Throughput rate of Receptionist = Staffing / Activity time = 1/1 = 1 loan per hour
Throughput rate of Loan officers = Staffing / Activity time = 4/7 = 0.57 loan per hour
Throughput rate of Officer manegers = Staffing / Activity time = 2/4 = 0.5 loan per hour
Throughput rate of Office manager is the lowest.
Therefore, bottleneck of the process is Office managers
b) Assuming unlimited demand, the process flow rate = 0.5 loan per hour * 8 hours per day * 5 days per week = 20 loans per week
c) Utiilzation rate of office manager resource = (customer demand / process flow rate)*100 = (18/20)*100 = 90
d)
Receptionist will process the first loan at 1 hour. Other resources will remain idle during this time. Loan officers resource will process the first loan at 1+7 = 8 hours. Office managers will remain until a loan is processed by loan officer resource. After the first loan is processed by loan officer, office manager resource will process the loan at 8+4 = 12 hour. Similarly, the flow time for 10 loans is calculated below:
Total time it takes to complete 10 loans = 29 hours
Loan Receptionist Loan officers Office managers 1 1 8 12 2 2 9 13 3 3 10 16 4 4 11 17 5 5 15 20 6 6 16 21 7 7 17 24 8 8 18 25 9 9 22 28 10 10 23 29Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.