Compute the cycle time and throughput rate

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Reference no: EM13229378

A government office processes two types of applications, Basic and Special, for an agency responsible for awarding funds for projects. Separate departments within the office process the two types of applications. The office manager is interested in finding out whether it is possible to reduce the processing times of each application and has asked you to evaluate each process. He would like each process to be 50% efficient. After reviewing both processes you have found the following information:

Basic application process (per application)	Special application process (per application)
60 minutes required to input information	140 minutes required to input information
60 minutes required to verify information	100 minutes required to verify information
20 minutes required to double-check work	60 minutes required to double-check work
30 minutes spent in mailroom	30 minutes spent in mailroom
10 minutes moving between stations	30 minutes moving between stations

Additional information	Additional information
2 employees work on Basic applications	3 employees work on Special applications
10 Basic applications wait to be processed	20 Special applications wait to be processed

For each application type, compute the cycle time, throughput rate, and throughput efficiency.
According to your calculations, which process appears to be more efficient? Why do you think this is? What suggestions would you provide the manager for improvement? What areas seem to be non-value adding and why?
Suppose that you have identified an improvement that would reduce the work-in-progress (WIP) for Basic applications to 4 and for Special applications to 7. What effect does this have on throughput rate and throughput efficiency (show your calculations)? If these are the absolute lowest levels of WIP possible, what implications does this have for increasing efficiency to reach the office manager's goal?

Reference no: EM13229378

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