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An insurance claim processing department needs to handle 36 claims daily on an average. They work for 9 hours daily. The claim processing involves 6

An insurance claim processing department needs to handle 36 claims daily on an average. They work for 9 hours daily. The claim processing involves 6 consecutive steps or tasks and these 6 tasks are assigned to 4 workstations as shown below. Tasks Assigned Workstation Task Time (minutes) A 1 10 B 2 4 C 2 11 D 3 10 E 3 5 F 4 9 a) (3 pts) What is the required cycle time to meet the daily demand of 36 claims? b) (3 pts) What is the efficiency of the current setup in the claim processing department? c) (3 pts) If on a given day a demand pull signal of 18 claims is sent (i.e., 18 claims are to be processed on that day), what will be the utilization of workstation 1 on that day? d) (3 pts) If daily demand is increased by 2 per day (i.e. from 36 to 38 per day), will the current setup in the claim processing department be able to handle it? Justify your answer. e) (5 pts) Suppose the facility has to handle 38 claims daily on average and the management likes to reassign tasks with a minimum number of workstations. How should it be done and why? State clearly how many workstations are needed and which tasks should be assigned where. Hint: This requires some easy logical reasoning. f) (3 pts) The Benihana simulation demonstrated that reducing demand variability is efficient for managing business operations. Can you give another example that utilizes the same idea?

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