The claims department of Corrupt Insurance operates Monday through Friday, except on holidays. The effective workday...

The claims department of Corrupt Insurance operates Monday through Friday, except on holidays. The effective workday averages 6.5 hours, considering employee breaks. The department processes 10 different types of claims before they are accepted or denied. The estimated processing time per claim type, as well as their observed percentage, are shown in the table below. Based on reliable forecasts, the manager of this facility is expecting the throughput shown here for the second half of 2018. Estimate the number of FTEs (full-time equivalent) required every month and propose options to adjust the labor force accordingly.

Claim	Processing	%
Type	Time (hrs)	%
A	3.6	20
B	2	17
C	1.6	13
D	5.35	12
E	4.1	11
F	3	10
G	4	7
H	2	5
I	6.6	3
J	5.1	2

Month	Claims
Jul	700
Aug	850
Sep	850
Oct	800
Nov	1,100
Dec	650

Expert Solution

Below excel show the approach for solving this problem:

Final number of FTEs (full-time equivalent) required every month

Month	Total FTEs required (rounded)
Jul	18
Aug	22
Sep	22
Oct	21
Nov	29
Dec	17

Labor force can be adjusted by hiring fixed full employees based on the requirement and then balance requirement can be addressed through part time employees.Based on the FTE requirement calculated above, 17 full time FTEs can be hired as this is minimum labor force per month and balance requirement can be addressed through part time FTEs.

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keosha answered 4 months ago

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