1.1. Objective of the Simulation
The purpose of this research is to analyze the SAMS financial institution’s probably increase in effectiveness and efficiency through implementation of an electronic document system. We make estimates about what changes to timing will occur from the proposed changes in the work process, and measure improvement in terms of customers cases served per week. Serving more customers per week increases the competitiveness and profitability of SAMS financial company. 1.2. Definitions and Abbreviations
NLC: No Liability Certificate: is a certificate given to the customer stating that the customer doesn’t have any due to the institution
NOC: No Objection Certificate: is a certificate given to the customer after release of final payments to the developer and given to the customer for collection of unit keys
CU: Customer Relationship Unit: The customer services unit submits the approval or rejection letter to the concerned relationship handling officer at the front desk in order to communicate the same to the respective customer. OP: Operations unit: Executes banking related transactions
CR: Credit unit: Credit unit assesses the credit worthiness of the client and issues preliminary approvals/ final approvals
Mailing Unit: Mailing unit after receiving the documents from the concerned departments arranges for the dispatch to the next concerned department.
Document handing point: where customer collects documents from. 1.3. Description
1.3.1.Description of bank procedure
Our simulation runs for 5 working days. To model the flow of customers, we use a time dependent distribution from 8 am to 5 pm each day. Peak hours are from 10am to 2pm. After monitoring customer traffic at a branch of SAMS, we came up with following data. On average, customer enters every 5 minutes and 50 customers enter per day. 35 customers enter in peak hours and 15 customers in normal hours.
In peak hours:
Since peak hours are from 10am to 2 pm = 4 hours
And we have 35 customers in peak hours
4hr * 60/35 = 7 min. inter-arrival time for customers in peak hours In normal hours:
Normal hours are from 8 am to 10 am & from 2 pm to 5 pm = 5 hours And we have 15 customers in normal hours
5hr * 60/15 = 20 min. inter-arrival time for customers in normal hours
There are 6 desks for customer service. After monitoring, we discovered that 80% comes for Finance facility (FF) and 20% comes for Loan Settlement (LS). Of these two main scenarios, the customer returns at different points in the process, which we will call “sub-scenarios”. In our simulation, we labeled each customer entering the branch with a “work type” numerical label to keep track of which sub-scenario they have entered for. The breakdown for this 80% (FF) is as follows:
1-24% new request.
2-13% collecting primary approval from front desk and gives it to the customer and requests him to get all the required documents. 24% is dropped to 13% because some people exit and they weren’t approved so they won’t come for the next step. 3- 13% customer comes with primary approval along with the requested documentations. 4-10% collects final approval from front desk and gives it to the customer. 13% has dropped to 10% because there were 3% declined cases. 5-10% of customers comes back with final approval & completed documents. 6-10% of customers collect NOC from front desk.
The breakdown for this 20% (LS) is as follows:
1-7% existing customers applying for new loan, or people coming for loan settlement 2-5% customer collects liability certificate from front desk. 3-4% customer brings the cheque book for settlement
4-4% customer collect NOC no objection certificate
Fig 1.1 The screenshot for SAMS financial institute in our simulation system
1.3.2.First Main Scenario -- Loan Settlement (LS) 20%
220.127.116.11.First Sub-scenario – New loan settlement request
Looking into figure 1.1, the customer enters the bank,...