An account holder of a bank applied for a Home loan and got loan application approval including the check for loan amount after 3 days. The bank works for 8 hours on each day. Based on the time study report for the employees of a similar bank for loan approval process, the following are the maximum time that may be spent for a loan approval process:

- Application receiving : 8 minutes

- Recording application information in the system : 30 minutes

- Credit checking : 2 minutes

- Approval of Loan based on Bank policy considerations: 1 hour

Determine process cycle efficiency(PCE) when above four items are the Value added times.

Now, say, you have collected the best-in-class loan application processing PCE to be 15%. Determine PLT based on the above value added time and the best in class PCE. Once you get the PLT, determine WIP cap to achieve desired PCE, ( Note: your ER or exit rate is 1/(VAT : 8+30+2+60) =0.01 application per minute )