Question

A small mortgage lender has one receptionist, four loan officers, and two office managers. When applicants apply for a new loan in person, they first fill out paperwork with the receptionist. Then the applicants meet with one of the loan officers to discuss their needs. The loan officer spends additional time processing the application after the applicants leave the office. Finally, the application must be reviewed by an office manager before it can be approved. The following table lists the processing times at each stage. The office is open for eight hours per day, five days per week.

Resource	Staffing (Number of Employees)	Activity Time (Hours per Loan)
Receptionist	1	1
Loan Officer	4	7
Office Manager	2	4

Round your answer to 3 digits after the decimal point if it is not an integer. Do NOT use comma in your numeric answers.

The total resource capacity of all receptionists is  loans per hour.

The total resource capacity of all loan officers is  loans per hour.

The total resource capacity of all office managers is  loans per week.

The process capacity is  loans per week.

Where is the bottleneck?  (Receptionist, or Loan Officer, or Office Manager?)

Assuming unlimited demand, the process flow rate is  loans per week.

Assuming unlimited demand, the cycle time is  hours per loan.

If the customer demand is 18 loans per week, the utilization of the office manager resource is %.

Assuming that the office currently has no backlog of loans that it is processing, it will take the first loan  hours to go through the process, and it will take the office a total of  hours to complete 10 loans.

Answer 1

	Resource	Number of	activity time	Capacity
	type	employees	(hours/loan)	loans/hour	loans/week
	receptionist	1	1	1	40
	loan officer	4	7	0.571	22.857
	office manager	2	4	0.5	20

solution:

a) The total resource capacity of all receptionists = number of employees / activity time in loans per hour

= 1 / 1

= 1 loan per hour

similarly

b) The total resource capacity of all loan officers = number of employees / activity time in loans per hour

= 4 / 7

= 0.571 loans per hour

c) The total resource capacity of office managers in loans per week

= (number of employees * number of days per week * number of working hours per day)/ activity time in loans per hr

= (2 * 5 * 8) / 4

= 20 loans per week

d) The total resource capacity of receptionist  in loans per week

= (number of employees * number of days per week * number of working hours per day)/ activity time in loans per hr

= ( 1 * 5 * 8) / 1

= 40 loans per week

similarly

The total resource capacity of loan officer  in loans per week = (4 * 8 * 5) / 7 = 22.857 loans per week

therefore

The process capacity = least resource capacity amongst receptionist , loan officer and office manager

= 20 loans per week

e) bottleneck = resource with least capacity = office manager [highlighted in the table ]

As per chegg guidelines four subparts to be answered but we have already answered five i,e [a, b, c, d, e]. hence please ask remaining sub-parts as seperate question.