An Analysis of the Turn-Around Time in Processing of Simple and Complex Auto Loans of Bank Xyz

4425 Words Sep 24th, 2010 18 Pages
An Analysis of the Turn-around Time in Processing of Simple and Complex Auto Loans of BANK XYZ

A Paper in Management Statistics

Presented by:
Jeffrey Tabangcura
Diana Grace Taruc
Flor Melodie Suyat
Elaine Sunit

Presented to:
Prof. Marian Angeli Reyes

TABLE OF CONTENTS Page Introduction 3

Problem Definition 4 Methodology 7

Survey Results-Data Presentation 10

Statistical Analysis 16

Recommendation 25

INTRODUCTION
A bank, being in the business of lending, evaluates its performance in the market based on feedback and evaluation. Bank XYZ, in particular, monitors its Turnaround Time (TAT) or the amount of time within which a specific process is completed. The Auto Loans Department, in particular, monitors its TAT through
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With this in mind, the management can do necessary corrective actions in the process of loan application so as to minimize the operational cost and properly utilize the resources that they have. For the first problem, it is known that the standard turnaround time for a credit analyst to process a simple auto loan is 3 hours or less while, for a complex auto loan should not exceed 8 hours. The management will provide recommendation for promotion and/or team incentive should they meet the above mentioned criteria otherwise the team will be undergo further training and the management will take corrective actions for the team’s performance rating. For the second problem, it is known that there are only two possible outcomes for the loan application, approved or disapproved. The applications are taken independently and each loan is likely to be approved as it is likely to be disapproved. The plan is to determine the probability that a credit analyst spends more time in processing application that are disapproved compared to the contrary. And for the third problem, it is known that simple auto loans are those that can be processed

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