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23 January, 09:30

An insurance application consists of two forms, F1 and F2. Upon receipt, each application is processed, recorded and separated into F1 and F2. This operation is done by a data-entry clerk and requires 6 minutes. F1 is processed by professional A for 20 minutes per unit and then by professional B for 10 minutes per unit. Professional C processes F2 for 20 minutes per unit. F1 and F2 are then combined and further processed by a loan officer for 15 minutes. The staffing of the process utilizes one each of professionals A, B, and C, one data entry clerk, and one loan officer.

Facing the coming busy season, two new staffs E and F are recently hired. Both of them can do data entry in 10 min, screening F1 in 30 min, rating F1 in 20 min, rating F2 in 20 min. Each of them will be asked to perform a single task.

Required: which positions should E and F be asked to take, respectively?

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  1. 23 January, 11:18
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    Checking the flow per staff:

    data entry clerk = 8 mins/application = 60/8 = 7.5 applications per hour

    Staff A = 20 mins = 60/20 = 3 F1 screening/hour

    Staff B = 10 mins = 60/10 = 6 F1 rating/hour

    Staff C = 15 mins = 60/15 = 4 F2 rating/hour

    2 loan officers = 15 mins = 60/15 = 4 (but 2 officers) = 8 applications/hour

    the minimum flow comes in Staff A, F1 screening with just 3 / hour, and next minimum is at Staff C at 4/hour

    one new staff E is put for Screening F1 = 30 mins = 2 applications/hour, this would increase the flow to 5 applications/hour

    after this the bottle neck is at F2 rating, hence F is placed at F2 rating with staff C = 20 mins = 3 applications / hour

    increasing the flow to 4+3 = 7 applications/hour.
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