# What is the minimum throughput time for application processing?

Question 1 XVZ is managing vehicle insurance application processing for an insurance company . Insurance application processing requires sequential processing of three different tasks ( A, B &C respectively in that order) . XYZ has dedicated resource for processing each of the three tasks. XYZ processes applications for two types of vehicles ( cars & trucks) and time required per application is as follows: Type of vehicle Task A Task B Task C* Car 6 minutes 15 minutes 5 minutes Truck 6 minutes 20 minutes 10 minutes * To be carried out by officer. Assume that each resource works for 8 hours per day. All resources except for officer are paid Rs. 200 per day while Officer is paid Rs. 300 per day. XYZ would like to calculate capacity of its system under following scenarios: ( Insurance company has enough business and will send required applications ( based on capacity work out by XYZ) for processing on daily basis ). a) Scenario 1 : Let us assume that XYZ is only processing car insurance applications. What is the capacity ( per day) of XYZ? What is the minimum throughput time for application processing? What is the labour cost per application? b) Scenario 2 : Let us assume that XYZ is only processing Truck insurance applications. What is the capacity ( per day) of XYZ? What is the minimum throughput time for application processing? What is labour cost per application? c) Scenario 3 : Let us assume that XYZ is processing mix of car and truck applications. Insurance company informs XYZ that on the average 80% of applications are likely to be for car insurance. What is the capacity ( per day) of XYZ? What is the minimum throughput time for application processing? Compare efficiency across three scenarios : 1, 2 & 3 .

d) Scenario 4 : Let us assume that XYZ is processing mix of car and truck applications ( car applications accounting for 80% of applications). For Task B XYZ decides to dedicate separate resource for car applications and separate resource for truck

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