Global Financial Corporation Essay

Global Financial Corporation (GF) a underling of Global Equipment attach to (GEC) is tasked with handling support for those customers who wish to purchase GEC hefty equipment. Currently GF completely processes 51% of the leases inside the 10 days or less sequence frame, with some loans taking up above 41 days. Ms. Rodriguez, the Vice president of GF has been directed to decrease loan touch on m to 10 days or less with the afoot(predicate) cater she has.The current structure of the analysis and paygrade decimal point does not maximize rung period hard-hittingly and as a consequence creates a blockade in the process. We recommend switching to a case manager structure. lLan covers kindle be processed and completed in close to 3 days. This would allow for an add in intensity level to 255 with place adding staff (assuming 60% atomic number 18 go on new applications), which is a 16.9% increase, exceeding the 10% anticipated application increase. mise en sceneGloba l Financial Corporation (GF) a subsidiary of Global Equipment Company (GEC) is tasked with handling financing for those customers who wish to purchase GEC heavy equipment. Due to the get down of the equipment many customers chose to finance the purchase with a lease agreement. Currently these loans ar processed at GF Bakersfield location, which employs 14 people. A competitor of GEC has promised processing of financing in 10 days or less. Currently GF only processes 51% of the leases within the 10 days or less time frame, with some loans taking up above 41 days. Ms. Rodriguez, the Vice President of GF has been directed to decrease loan processing time with the current staff she has.ProblemsThe Bakersfield office is operating at only 86% of capacity utilizing 2990.5 hours of processing time (full capacity 3485 hours). In October they processed 218 applications, 89 were standards and 129 were News. The analysis by region shows that component 1 is handling the most applications at 7 8 (52 new, highest number among the different regions), averaging 126.7 hours which, equates to 20.1 days. locality 2 is only handling a total of 66 applications (35 new) with an average processing time of 5.7 days, and Region 3 handling 74 applications (42 new), averaging 8.7 days. The Northeast office handles about 35% to a greater extent applications with essentially the same staff. Only 51% of the applications are processed within the 10 day or less requirement.Analysis of the Current bear upon Steps1. Analysis and evaluation defend is a single channel, liaison site multi channel, loan terms single channel, and final issuing a multichannel. (Exhibit A)The current structure of the analysis and evaluation stage does not maximize staff time effectively and as a consequence creates a embarrass in the process. With the single channel structure loan applications are unevenly distributed among teams and create higher godforsaken time for teams with less volume of loan applicatio ns to process. Utilization among regions varies greatly between 73% 95%. The quest observation of the current structure was achieved using the MMK model (See exhibit B)* anticipate wait time in the arrangement for an application in Region 1 is rough 37 days, with actual processing time of 14.10 hours. This is where the bottleneck occurs as it takes the evaluation team all over 16 days out of the 37 to perform the review of 78 applications. * Expected wait time in the system for an application in Region 2 is approximately 11 days, with an actual processing time of 13.40 hours. Of the three Regions, Region 2 processed the least applications of 66 during the quarter being reviewed. With a purpose rate of 73%, Region 2 experienced the most idle time in the evaluation process.* Expected wait time in the system for an application in Region 3 was approximately 15 days, with an actual processing time of 13.56 hours. With utilization rate of 84%, this Region has the ability to handle an increase in applications. * Each region utilise over ten days of average time in system and showed bottlenecks.2.Interest rate stage is a multi channel process and is working(a) effectively. Applications are processed quickly and are usually turned over to the next step within 30 minutes. The utilization rate is tenacious at 64%, which pisseds that this staff member raft comprehend to devote only half of his time to this task.3.Loan terms stage is a single channel and has similar issues as the analysis and evaluation department. It creates bottleneck and work is unevenly distributed.4. Final issuing stage is an effective multichannel process with a consistently high utilization percentage. Each application takes less than 4 hours to process and utilizes time consistently at 93% of capacity.AlternativesRedistribute the staff to eliminate the bottlenecks in the process. Automate the input of entropy into a computer database at the sales level eliminating duplicate entry. * g eneric queue would decrease processing time to 9 days. Evaluation get out drastically reduce to 2 days of processing, increasing utilization and lessen idle time. Active time in the system will be reduced to 13.72 hours. swap all stages to a multiple, multiphase channel (Exhibit C &D). There would still bottleneck from the evaluation stage.* Case manager would increase active time of application to 18.5 hours however, significantly reduce queuing time to approximately 3 days. This is assuming there are no teams during the evaluation stage and that the average time would double to 9.5 hours, which may not be the case. Change to multiple channel assignment multiphase. (Exhibit E &F) Eliminate bottleneck, service rate of 22.2 per FTE, per quarter.RecommendationWe recommend switching to a case manager structure. This would mean that one person will be responsible for the completion of a loan application (Exhibit E). This will provide for most efficient bureau to minimize idle time and maximize utilization rate. Loan applications can be processed and completed in approximately 3 days. This would allow for an increase in volume to 255 without adding staff (assuming 60% are die hard new applications), which is a 16.9% increase, exceeding the 10% anticipated application increase.