Del, every wire transfer request is processed firstcome-first-served. Some of these wires are for millions of dollars,

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“Del, every wire transfer request is processed firstcome-first-served. Some of these wires are for millions of dollars, while others are under $100,” said Betty Kelly, a 28-year-old manager of Cash Movement (CM). She continued, “I’m also concerned that all wires regardless of dollar amount go through the same quality checkpoints and whether we are staffed correctly.”
Betty left her boss Del Carr’s office with many related issues on her mind. As Betty sat down in her office chair, Steve Breslin, supervisor of outgoing wires, said, “Betty, last week we processed a wire for $80,000 incorrectly to Houston Oaks Bank, and now they won’t give it back. What should we do?” “Steve, give me the information, and I’ll call the bank now,” said Betty. The rest of Betty’s day was spent recovering this money and discussing several personnel issues.
The Cash Movement (CM) operating unit is responsible for transferring money for BankUSA and any of its customers. Over 80 percent of all transaction requests are for individual customers, and the remaining requests are for commercial (business) customers. For example, a customer will sell stock and request that cash funds be sent to another institution such as a mutual fund, credit union, or another bank. The customer will request his or her local customer investment manager (CIM) to transfer money into or out of the account. The CIM will then request by e-mail or fax that Cash Movement process the transaction.
All wires must be settled on the same day.

Case Questions for Discussion:
1. What is the best way to group the work represented by the 16 workgroups for an average demand of 306 outgoing wires per day? What is your line balance if peak demand is 450 wires per day? What is assembly-line efficiency for each line-balance solution?
2. How many people are needed for the outgoing wire process using assembly-line-balancing methods versus the current staffing level of 11 full-timeequivalent employees?
3. How many staff members do you need for the outgoing wire process if you eliminate all rework?
4. What are your final recommendations?

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