System Capacity Analysis Application: Clearview County Bank

There are three employees at Clearview County bank:

Administrative Assistant

Loan Processor

Bank Manager

The Clearview County Bank receives many loan applications from individuals and local businesses, and must decide which loans to grant. The administrative assistant at the bank creates a profile for each potential client in the computer system. She prepares $16$ loan profiles per day without interruption. Each client meets with the loan processor for $30$ minutes.

On average, $75\%$ of clients are granted a loan. If the loan is granted, the loan processor prepares a formal statement detailing the specifics of the loan. The processor can prepare $8$ of these formal statements per day without interruption. The bank manager must spend $12$ minutes reviewing each formal statement. Lastly, the administrative assistant must spend $10$ minutes putting the loan details in good form.

If the loan application is denied, the assistant must relay this information to the party, which takes $4$ minutes. The administrative assistant, the loan processor, and the manager work $8$ hours a day, $20$ days a month.

Because home loan interest rate goes down dramatically this month, the bank manager forecasts that the number of loan application will go up to $500$ applications per month soon. Clearview County Bank sells its approved loans to Citi Bank immediately and gets $$500$ profit for each loan.

Image yourself as the bank manager, draw a process flow chart and analyze your current system capacity. How would you invest wisely on expanding system capacity? i$.$e$.,$ How many extra administrative assistants and loan processors would you hire? What is the extra revenue added to the bank by each resource you hired?

$2.$ Lean Process Application: Identify a process that you have encountered or might encounter in your career or in your life. Draw a process flowchart. How to improve the process by applying the principles or tools of lean process? $($Lean process will be covered during next class$)$