GENERAL FINDINGS ACCORDING TO THE CASE STUDY (ARAPU)
Minimize the proportion of turnover that is spent on administration. Increase visibility and increase lead time of application process.
Funds are not getting delivered quickly.
Increase in costs of the running operation.
Delays over the processing of application.
No status was available when a representative called on a telephone.
Transactions record :
300 new applications per week.
300 applications responded per week.
Financial target is good, but cost application is increasing. Target turnaround from receipt of application to response was 20 days. Files waiting within the process (WIP) are about 2000.
Receipt clerk - Coding clerk - Assessor - Payment officer - Dispatch clerk
Failed applications are sent to the decline officer once they are accessed.
Problem Analysis :
Let us calculate the Cycle time with respect to the work in process, The Work in process is about 2000 applications.
WIP = 2000 applications
Cycle time = (time producing)/(No. of produced)
We know that units operate 35 hours a week,
Let us assume the units work 7 hours a day and 5 days a week.
Time producing is 7 hours ( 420 minutes )
No of applications responded in a week as per the case are 300. Let us assume 60 of each applications are responded in a day.
No. of applications produced in a day are 60.
Now, cycle time = (time producing)/(No. of produced)
Cycles time is about 7 minutes for the process.
From Littles’ Law,
Throughput time = WIP x Cycle time
= 2000 x 7
= 14000 minutes ( 10 days working )
So the throughput time is about 10 days of working which is 2 weeks of the working process.
According to the throughput time, it is clearly visible that the new incoming applications...
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