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Scenario 1.
SmallBiz, Inc. SmallBiz Inc. provides credit services to owners of small businesses with store fronts in Baltimore. An application for services consists of 2 forms: F1 relates to the business owner, and F2 relates to the location. Upon receipt, each application is processed, recorded, and separated into F1 and F2. This operation requires 10 minutes. F1 requires activity A for 15 minutes, followed by Activity B for 10 minutes. F2 requires Activity C for 20 minutes per unit. F1 and F2 are then combined and reviewed by a Risk Manager for 15 minutes (Activity D). All times listed here represent flow time at each activity and include associated waiting.
1. Make a flow chart for the process.
2. What is the Flow Time for a typical application given the description provided above?
3. In 50% of all cases the Risk Manager spots a problem which requires that Activity A be reworked for 15 minutes. How does this change the expected flow time?
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