Spartan Billing Case Study Solution

990 Words4 Pages
As the head of the Spartan Billing Department, I have been tasked to improve the process efficiency and reduce cycle time so that the bills can go out quicker; however, there are queues that are building up in many areas. This is causing inefficiencies in the entire process. In order to create a detailed plan for modifying the process to improve efficiency and reduce the cycle time so that the bills can go out on time, I have chosen to use Arena and go step by step to explain the changes and their purpose. This application allows me to simulate processes and calculate the differences in results between alternative business processes. The problem that we are faced with is the fact that we have two separate types of bills, normal and contract, that are handled…show more content…
Now, we are able to create an increase in demand of both normal and contract bills. This simulation shows the affect of implementing a quicker arrival rate for both normal bills at 4 minutes from 6 minutes and contract bills at 15 minutes from 20 minutes. Because the process can now support the increase in the arrival rate we can see that the number out has increased by about 44% while the total cost has stayed relatively constant. This was made possible by the hiring of skilled workers and investing in the process by increasing the total cost. Recommendation: One of my recommendations to increase the efficiency for the process as a whole is to invest in a second printer to separate the normal bills from the contract bills, thus cutting down on one process that is constantly piling up due to the convergence of normal and contract bills and their increased arrival rate. The next recommendation that I have is to implement a way to separate the normal bills from the contract bills in the mailing process. This will cut down on the cycle time and overall efficiency of the entire process.
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