Christine Joy Teves

MBA 201 (9847)

Case 3: Lucky: The Loan Officer

Activity Early Early Late Late Standard

Activity time start finish start finish Slack Deviation
Project 8 .47
A 1 0 1 1 2 1 .13
B 2 0 2 0 2 0 .21
C 3 2 5 2 5 0 .34
D 2 5 7 6 8 1 .13
E 3 5 8 5 8 0 .24

1. Is it possible to delay the fourth step? If yes, how many days?

The result shows that it is possible to delay the fourth step because it is not in the critical stage.
Which means, that the fourth step - loan closing or verification can be delayed in 1 day without delaying
the completion of the entire loan processing.

2. Are there anymore activities that they can afford to delay and if yes how may days?

The first step – application and approval can be delayed for 1 day based on the results
presented in the activity scheduled.

3. How many days can the cooperative process loan application?

The processing of loan can be completed for 8 days based on the results in the activity schedule
considering all the processing of the loan and also not delaying the critical path B-C-E.

Activity Early Early Late Late Standard

Activity time start finish start finish Slack Deviation
Project 7.9 .47
A 1.02 0 1.02 0.92 1.94 0.92 .13
B 1.94 0 1.94 0 1.94 0 .21
C 3.06 1.94 5 1.94 5 0 .34
D 2.02 5 7.02 5.88 7.9 0.88 .13
E 2.9 5 7.9 5 7.9 0 .24

4. Is the claim of Lucky that the probability of finishing the loan application is more than 50
percent?

Lucky is right in claiming that the loan processing will be finished more than 50 percent. The
results justify the claim of Lucky because the loan will be finished within 7.9 days chance that the loan
will be finished within 8 days and more than to the 50 percent probability by Lucky.
 5. How many days is the minimum loan processing?

Lucky’s team reduces the loan process by reducing the original number of days in each steps of
processing. The Board’s decision to reduce in 3 days would not attain. It shows that the minimum loan
processing is 4 days and it did not meet the required number of days set by the Board.

6. If they reduce the processing cost, how much is the additional cost per loan?

The number of days to finished loan processing is reduces from 8 days to 4 days. Since the
processing reduces there will be additional cost associated amounting to 117.50 on processing the loan.