MGSC 485 Spring 2011- Exam 1 STUDY GUIDE Problem Solutions

MGSC 485 Spring 2011- Exam 1 STUDY GUIDE Problem Solutions...

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MGSC 485 – Spring 2011 - Exam 1 – STUDY GUIDE SOLUTIONS DO NOT LOOK UNTIL YOU HAVE TRIED THESE YOURSELF!! Process Flow Time Analysis Problem Portland Insurance specializes in home insurance business. The Columbia, SC office handles all Southeast applications. When an application comes in, it consists of two forms, F1 and F2 that must be reviewed. Form F1 relates to the homeowner and form F2 relates to the property. The application is separated by the “reception” department into the two forms F1 and F2. It takes 10 minutes to do the “separate forms” task (Task “Separate”). Then Form F1 is sent to the Department that reviews it and Form F2 is sent to the Department that reviews it. Form F1 is reviewed by the Department-F1 (Task “Review F1”). Sixty percent of the forms F1 are filled out correctly and take 20 minutes to review. Thirty percent of the forms F1 have minor errors for which the department has to call the customer. It takes on the average 60 minutes to correct the errors and complete the review for these forms (including the initial 20 minutes). Ten percent of the F1 forms are a complete mess, and it takes 3 hours to process these F1 forms (including the initial 20 minutes). Form F2 is reviewed by the Department-F2 (Task “Review F2”). Fifty percent of the forms F2 are filled out correctly and take 30 minutes to review. Forty percent of the forms F2 have minor errors for which the department has to call the customer. It takes on the average 80 minutes to correct the errors and complete the review for these forms (including the initial 30 minutes). Ten percent of the F2 forms are a complete mess, and it takes 10 hours to process these F2 forms (including the initial 30 minutes). Finally, the reviewed forms F1 and F2 are sent to the Approval Department which decides the fate of the combined and reviewed application (Task “Decide”). It takes 25 minutes to make the decision. However, the Approval Department makes mistake and has to reprocess the final step on 20% of the applications. Compute the “Theoretical Flow Time” for the Columbia, SC office of Portland Insurance for the “Home Insurance Application Approval” process.
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Separate Forms Form F2 Form F1 Approve Process Flow Time Analysis Solution STEP 1: Draw Process Map. STEP 2: Compute Work Content of Each Activity. Activity A = 10 minutes.
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Activity F1 = (0.6*20) + (0.3*60) + (0.1*180) = 48 minutes. Explanation: 60% forms take 20 minutes, 30% forms take 60 minutes and 10% forms take 180 minutes. Activity F2 = (0.5 * 30) + (0.4 * 80) + (0.1 * 600) = 107 minutes. Explanation: 50% forms take 30 minutes, 40% forms take 80 minutes and 10% forms take 600 minutes. Activity Approve = 25 * 1.2 = 30 minutes. (Explanation: 20% rework).
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This note was uploaded on 07/02/2011 for the course MGSC 485 taught by Professor Ahire during the Spring '10 term at South Carolina.

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MGSC 485 Spring 2011- Exam 1 STUDY GUIDE Problem Solutions...

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