Homework # 4

Business Operations Management

Flow-Time Analysis
Student: Jorge Y Gonzales-Lara

Instructor: John Noble Masi, MBA

Miami June 6, 2018

1. Examine a service encounter such a visit to a restaurant. Give a rough estimate of

the average flow time, the theoretical flow time, and the flow time efficiency.

Today I went to the restaurant La Carreta and the estimate of the average flow time was 8
minutes and estimate of the average flow time was 16 minutes.

The theoretical flow time for the counter at the restaurant is 8 minutes, the average flow time at a
restaurant is 16 minutes, and the flow time efficiency is:

 Flow time efficiency = 8 minutes/16 minutes = 50%

The theoretical flow time of a process is the minimum amount of time required for processing a
typical flow unit without any waiting.

2. Provide an example from your work environment of how flow time could be
improved using the following levers.
a. Work smarter
b. Do it right the first time
c. Work faster

The development and productivity process of our digital magazine, depends on time,
presentation, innovation, creativity of efficient information. The total time flow that is used in a
flow unit that is spent in a process is important.

Work Smarter Do it right the first time Work faster

Flow times = Activity time + Waiting Times

Worker smarter. Working more intelligently, the most important thing is to manage time,
strategic breaks and adequate sleep. Creativity and efficient information depends on how to
manage time and adequate breaks. The digital magazine requires dedication and creativity and it
is important to keep an open mind and control of the senses. By "doing it right the first time", the
company can carry out a production process without problems, without the need to carry an
excess inventory, which will help to reduce production costs. Work faster, implies I will increase
the speed of the activity; better training, advanced technology and better management.

3, Describe the process used by your bank for approving a home mortgage. In
particular, highlight the activities that are done or could be done in parallel. What
are the pros and cons of doing these activities in parallel?

 Bank of America offers Home Loan Navigator, an online mortgage portal.

 Completing a prequalification request will take less than 5 minutes

 The online portal allows me to be connected during the loan process. This is done
through an application in the Bank or Mobile office.
 I need to complete an initial application on line with the information of my credit and
type of loan.
 Then an agent of the official loan bank contact me to create an account and upload
documents, download loan disclosures, track the progress of your loan and sign electronic
documents.
o General loan details such as amount and property type
o Social Security number for customizing my rates
o Customized rates and payments
o Then an expert advice from a loan officer would contact.

 Bank of America bank also offers internal videoconferences with credit officers.
Two ways to accomplish this include working in parallel rather than sequentially, preparing all
the documentation required for a mortgage. Because the theoretical flow time can be
reduced by eliminating aspects that do not add value.

Exercises

1. The traffic Court of King James County operates between the hours of 9 A.M. and 1 P.M
Each morning, roughly at 9 p.m.; 200 defendants show up for trail involving traffic
violations, such as speeding, illegal parking, and ignoring a stop sign. On Monday, June
10, 2003, a sample of 10 defendants was selected at random by a consultant. For each
defendant, the consultant recorded the actual time spent in discussion with the judge and
the time paying the fine (not including waiting). Also record were the times the defendant
arrived and left the court. The date are summarized in table 7.
a. Estimate the flow time of the process.
b. Estimate the theoretical flow time of the process.
c. What is the flow-time efficiency?
a) Estimate the flow time of the process
a. The average flow time of the process can be estimated by taking the average of the total
time each defendant spent in the system.
b. (9:30-8:45) + (9:45-8:45) + …… + (12:55-9:00) + (9:20-9:00) = 1200.
c. Average Flow Time = 1200/10 = 120 min.
b) Estimate the theoretical flow time of the process
a. Average time with judge = (1+1.5+…..+ 1+1.5)/10 = 1.55 min.
b. The average time to pay fine = (5+2+…..+ 2+3)/10 = 2.4 min.
c. Theoretical flow time: 1.55 + 2.4 = 3.95 min.
c) What is the flow-time efficiency? Number only without % sign.
a. 3.95/120 = 3.3%

2. Wonder Shed Inc. (Example 3) produces, in addition to the standard model, a deluxe
version for the discriminating customer. The production process for the two models is
identical and is depicted in Figure 1. The activity times for deluxe models is listed in
Table 8. All times mentioned the effects of waiting.

 Path 1 (roof): Start -> 1 -> 3 -> 5 -> 7 -> 8 -> End

 Path 2 (Base): Start -> 1 -> 2 -> 4 -> 6 -> 7 -> 8 -> End
1. What is the process flow time for producing a deluxe shed (in minutes)?
o Path 1 (roof) : = 20+ 45 +45 +25+ 40 = 175 minutes

o Path 2 (base): = 20+35+10 +30+25+ 40= 160 minutes

2. What is the impact on flow time of the process if the flow time of Activity 2 is increased to 40
minutes?

o Activity 2 is not on the critical path even it is increased to 40 minutes. 175 minutes.

3. What is the impact on flow time of the process if the flow time of Activity 3 is reduced to
40 minutes?

a. The process flow time will be reduced to 170 minutes.