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A home insurance application consists of two forms: F1, which relates to the home owner, 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.a. Draw a process flowchart for the processes. b. What is the flow time? c. What is the effect on flow time if 50 percent of Fl forms must repeat Activity A one more time due to quality problems?

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Answer:

a. The process flowchart for the processes is shown in the attached file.

b. The flow time is 50 minutes.

c. It will increase the flow time to 57.5 minutes.

Explanation:

a. A process flowchart is used to show all the necessary steps and processes in an operation. The flowchart for the operation above is shown in the attached file.

b.  Because F1 contains the critical path, the flow time is 50 minutes.

c. Because 50% of F1 is turned back to A, thus 100% of F1 will use approximately 15 mins in A and other 50% will use an additional 15 mins in A. Therefore:

On average F1 will use 15 + (50/100)*15 = 15 + 7.5 = 22.5 mins

This shows that Activity A will use an additional 7.5 mins. Because this is on the critical path, the flow time will change to 50 + 7.5 = 57.5 mins

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