11481 Workflow and Process Management
We consider the following process performed by a Loans provider that processes loans from home loan applicants. The Loan Assessment process starts upon the receipt of a loan application from an applicant. Once a loan application is received by the loan provider, it is checked for completeness. If the application is incomplete, it is returned to the applicant, so that they can fill out the missing information and send it back to the loan provider. This process is repeated until the application is found complete or terminated if an updated application is not received in 5 days from the date the incomplete application was sent back to the applicant.
Once the application has been deemed complete, it is approved if it passes two checks: i) the applicant’s loan risk assessment, done automatically by a service, and ii) the appraisal of the property for which the loan has been asked, carried out by a property appraiser. Before conducting the risk assessment, a credit history check is required on the applicant, which is performed by a financial officer. Once both the loan risk assessment and the property appraisal have been performed, a loan officer can assess the applicant’s eligibility. If the applicant is not eligible, the application is rejected, otherwise the loan officer prepares an acceptance pack, prints it and sends the printed copy to the applicant by post.
The acceptance pack includes a repayment agreement which the applicant needs to sign and send it back to the loan officer by post within two weeks. If this agreement is received on time, the loan officer verifies its content to check if the applicant agreed with both the loan conditions and the repayment schedule. Based on this check, a loan officer different from the one who verified the agreement takes the final decision on the application (i.e. a four-eye principle is enforced). If the applicant disagrees, the loan officer cancels the application, otherwise, the officer approves the application. In either case, the process completes with the applicant being notified of the final result.
A loan application may be coupled with a home insurance plan, which is offered at a discounted price. The applicant may express their interest in a home insurance plan at the time of submitting their loan application. This information is checked after sending the acceptance pack. If the insurance plan is required, an insurance sales representative sends a home insurance quote to the applicant. The acceptance of the insurance quote by the applicant and the subsequent insurance contract fall outside the scope of the Loan Assessment process.
Draw a BPMN diagram that accurately represents the business process described in the case study.
Explain and justify any relevant assumptions that you have made while answering this question.
Using the business process described in the case study:
2a. Perform a value-added analysis of the business process. Explain and justify any relevant assumptions that you have made while answering this question.
2b. Perform a waste analysis of the business process. Explain and justify any relevant assumptions that you have made while answering this question.
2c. Perform a root-cause analysis of an issue that results in many applications being terminated if an updated application is not received in 5 days from the date the incomplete application was sent back to the applicant. Explain and justify any relevant assumptions that you have made while answering this question.
2d. In your own words describe the benefit of using one analysis method (value-added OR the waste-analysis OR the root-cause analysis) in a discussion with the home loan provider business.
In relation to the business process described in the case study, describe, explain, and justify a set of changes to improve the process. Explain and justify any relevant assumptions that you have made while answering this question.
For the following process:
4a. Calculate the cycle time efficiency of the following process. Show all of your working, including process breakdown and formulas used. Perform your working and answer to two decimal places.
4b. An event log was taken and only the followed two processes were found.
Explain what is happening and describe in one paragraph the concerns you could raise with the business running this process.