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Hrm/531 Week 4

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After analysis of the business process with the arena software I discovered that through more efficient and better paid employees we can eliminate our backups in our process and create more demand for our service. These discoveries were made due to running multiple simulations of our business process with each one becoming more realistic. In the end 4 cases were ran, with each one changing certain inputs that created different results. First, after the base case, the processes were changed and made to be more efficient and faster. Next, the wages of the employees were increased. And finally a simulation for heightened demand due to a more efficient system. In the end the both cost of the normal and contract bills decreased while allowing for increased production to create more profit. First in the base case, the problem was evident that there were major backups in both the registration of accounts receivable and the verification of bills. The backups seemed to be caused by undertrained or underqualified biller’s whose working duration per bill was 2.5 to 3 times slower then it could be. These wait times decreased demand in our products and hurt our net income. In this base case it was easy to find the issues in our business process, and in the second case those issues …show more content…
With this first change to the business process the wait time for registration of accounts receivable was cut from just over 13 minutes to under 2 minutes, a decrease of over 11 minutes. And for verification of bills it was cut from almost 5 minutes to becoming almost non-existent at around 3 seconds. These two major changes in wait times were caused by an increase in the ability of both the senior and account biller. However, these improvements in the efficiency of the business process must create higher cost which will be examined in case

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