In: Operations Management
How do I determine the bottleneck in the process?
See question below.
A home insurance application consists of two forms: F1, which relates to the homeowner, and F2, which relates to the property. On receipt, each application is processed, recorded, and separated into F1 and F2. This operation requires 10 minutes. F1 requires Activity A for 15 minutes per unit and then Activity B for 10 minutes per unit. F2 requires Activity C for 20 minutes per unit. F1 and F2 are then combined and further processed by a loan officer for 15 minutes. All the times mentioned represent flow time at the various activities and include the effects of waiting.
The sequence of processes for homeowners as follows :
Receipt/processing/recording/separation into F1 ( 10 minutes) --------activity A( 15 mins)---activity B(10 mins)-processing by loan officer ( 15 mins)
The sequence of processes for related to property:
Receipt/processing/ recording /separation into F2( 10 minutes) – Activity C ( 20 minutes) – processing by loan officer ( 15 mins)
Bottleneck in a process is that job which has maximum processing time.
For homeowners as will be clear from above sequence of events highest activity time is15 minutes at Activity A as well as activity involving processing by homeowners , Hence both of these two are bottlenecks for homeowners
For property related matter , highest time is taken in activity C of 20 minutes. Therefore , activity C will be the bottleneck .