OPERATIONS MANAGEMENT

profilemcsn00
hint_for_capital_one_case.xls

Sheet1

Activity Interview UW Approved QA Closing
Flow of Applications 1136.3636363636 379.5454545455 300
Processing time/ Application 70
Demand per month 26568.1818181818
Number of workers 6
Total total miunutes worked per day 312
Capacity
Implied Utilization
I have mentioned in the instructions for capital one case that you need analysis, this is a hint (or a partial example) of how it can look. I supposed 300 as monthly demand, that is just my plugin number for this example, you should do your own calculaton. The number of activities are clearly given in process steps in Exhibit 1, I took five activies for demonstration purpose. According to the Exhibit 6, If you start with 100 interviews you end-up booking just 26 loans. So number of flow of applications I have shown here reflect that Attrition rate. Demand is in minutes. So capacity is in minutes as well Capacity = number worker* work minutes per months. Look at the case and think how many hours a day and how many days a month the work. Implied utililization = ? Now I have given enough hints, read the case, the chapters and the questions. You should be able to answer all the questions I asked.