OM5 C8 IM
The case describes a department in the investment and trust operations area of a major
bank that processes “information-intensive transactions (wires).” Notice the ALB
problem is described for a service industry. The wires are initiated by a paper-based
process. The case analysis requires a blend of numerical analysis as well as qualitative
Case Questions and Brief Answers
1. What is the best way to group the work represented by the 16 work groups
for an average demand of 306 outgoing wires per day? What is your line balance
if peak demand is 450 wires per day? What is assembly-line efficiency for each
line balance solution?
How to group work tasks most efficiently is best done with assembly line
balancing methods. Please note that this process is best described as having
dominant line flows (i.e., a flow shop) with considerable customization per
transaction (widget). The high volumes and fair degree of customization per
The cycle time at 306 wires/day is 1.47 min/wire as shown in the case. At about
150% of average demand, the cycle time in Equation 8.2 is C = A/R or C = 1/[(306
wires/day*1.5)(1/7.5 hours/day)(1 hr./60 minutes)] = 1/1.02 = 0.98 min/wire ≈ 1
You may also want to explain to students that if demand is greater than 457
wires/day, you have to redefine the work and break the 16 steps and times into
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