Gfc Case Analysis

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Background Global Financial (GF) Corporation, a subsidiary of Global Equipment Company (GEC), provides financing GEC equipment for customers. Much of GEC’s large equipment purchased needs financing. The Bakersfield office of GF manages the loan application process for the Western United States and is comprised of fourteen people. The loan process starts with Evaluation and Analysis, Interest Rate determination, Loan terms determined, and then final issuing of the loan paperwork. GES sales department and Customers are dissatisfied with the current processing time for loan applications by GF. Problem statement & Objective GF Loan application processing and is sub optimal with its inefficient resources utilization and is unable to commit to meet GEC’s objective of promising its customers “10 business days or less” processing time for loan approval. The objective of this case study is to analyze and recommend optimal loan approval process for GF analyzing capacity and bottlenecks in the system. Case Analysis and recommendations Current Model The above table summarizes the Average waiting time in the system (Ws*) based on the current model of processing the applications for each region. The applications processed in different regions take processing times in the system ranging from 15.29 to 37.23 days. Also, further analysis of service rates (details in attached spreadsheet) we find that the service rates of interest rates processing (process 2) and final issuing (process 4) processes is much higher than the process evaluation (process 1) and loan terms (process 3) processes. Clearly processes 1 and 3 are unable to meet the demands of processes 2 and 4 making them the bottleneck processes. The available capacity in processes 2 and 3 is underutilized making the overall process sub optimal resulting in the decrease in the total number of applications

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