Reference no: EM132080820
• Flow Loans has a customer demand of 600 loan fixed rate loan refinancings per week (approximately $100M)
• The office operates:
– 5 days per week, 1 shift per day, 9 hours per shift
– Each shift receives a 30 minute paid lunch
– Each shift receives 2 - 15 minute paid breaks
– This includes appraisers who work in the field
• The average process uptime is 95% (due to network failures and system downtime)
• The capacity of each step in the process is:
Process step/ Gross capacity/ # people
– Application/ 2 apps/hour/person/ 8 people
– Processing/ 1.5 apps/hour/person/ 12 people
– Appraising/ 0.5 apps/hour/person/ 24 people
– Closing/ 1 apps/hour/person/ 16 people
Questions:
1) What is the net operating time (hours per week)?
2) What are the takt rate (applications/hour) and takt time (minutes/application)?
3) Where is the bottleneck in the process?
4) What is the current capacity of the process (applications per hour)?
5) What could be done to increase capacity?