Assessment task 2Analytical report

Due date: Weighting: Length: 1PM AEST, Thursday of Week 12 50% 3500 words 10% (excluding front matter and reference list)
ASSESSMENT

Objectives
This assessment item relates to course learning outcomes numbers 1 to 5 as stated in the course profile.

Purpose
The primary purpose of this assessment task is to help students develop skills in the use of Operations Management principles, theories and models in the analysis of the current operations of a service organisation. The assignment requires you to analyse the current situation, identify the operational problems within the organisation, and develop a set of recommendations that when implemented, will overcome the identified problems without creating new ones. In this assessment piece you are expected to solve the case. The secondary purpose of this assignment is to give students the opportunity to further develop analysis and problem identification skills, as well as skills in presenting an argument for change within the framework of a business report. Before starting this assessment please read the marking criteria (below) and Report Writing on the Communications Learning Centre website: http://www.cqu.edu.au/about-us/service-and-facilities/communications-learning-centre/academiccommunication/written-assessment-tasks/report-writing. You should also read the Assignment Writing Tips on the course website. The course website also provides useful information in regard to the development of this assessment item.

Description
Assessment task 2 requires the writing of a business report. The report should be designed as a management document that can be used to implement recommended changes. It should include a comprehensive analysis of the current situation using Operations Management theory, models and frameworks including a root cause analysis. The report should also contain recommendations and an implementation plan. Students are expected to engage in extensive research within the academic literature relating to operations management. Some research into the industry in question might also help students develop a more robust understanding of the information in the case.

Details
The assessment item is based on the case study titled Blueprinting the Service Profit Chain. The case itself, and assignment requirements should be accessed through the course website. You should read, and carefully analyse, the case and respond to the issues presented at the end of the case study within the context of a professionally presented business report.

Case study: Blueprinting the Service-Profit chain

With the continued growth of the mining sector in Western Australia, the Community Bank of Perth had experienced a strong growth in all areas of its business. One area that seemed to be booming was the refinancing of home loans. Prospective and current customers were searching for more economical loans, and the applications for refinancing were being received in ever-increasing numbers. In order to handle the increased volume, the bank developed a new loans approval process. The process was divided into five distinct stages and departments were created for each stage. Stage 1: Loan application The process begins with a customer completing a loan application for a loan agent. The loan agent discusses the refinancing option with the customer and performs quick calculations based on customerreported data to see if the customer qualifies for loan approval. If the numbers work, the customer signs a few papers to allow a credit check and goes home to wait for notification of the loans approval. Stage 2: Loan processing The customers file is then passed on to a loan processor, who requests a credit check, verification of loans or mortgages from other financial institutions, an appraisal of the property, and employment verification. If any problems are encountered, the loan processor goes to the loan agent for advice. If items appear on the credit report that are not on the application, or if other agencies have requested the credit report, the customer is required to explain the discrepancies in writing. If the explanation is acceptable, the letter is placed in the customers file and the file is sent to the loan agent (and sometimes the banks board) for final approval. Stage 3: Loan closing The customer receives a letter of loan approval and is asked to call the closing agent to schedule a closing date and to lock in a loan rate if the customer has not already done so. The closing agent requests the name of the customers lawyer to forward the loan packet. The lawyer is responsible for arranging a termite inspection, a survey, a title search, and insurance, as well as preparing the closing papers. The lawyer and the closing agent correspond back and forth to verify fees, payment schedules, and payoff amounts. Stage 4: New account establishment The loan-servicing specialist makes sure that the previous loan is paid off and the new loan is set up properly. Stage 5: Loan payment setup After the closing takes place, the banks loan-payment specialist takes care of issuing payment books or setting up the automatic withdrawal of mortgage fees and calculating the exact monthly payments. The loan-payment specialist also monitors late payment of mortgages. It is difficult to evaluate the success or failure of the process, since the volume of refinancing requests is so much greater than it has ever been before. However, customer comments solicited by the loanservicing specialist have been disturbing to management. Customer Comments
I refinanced with the same bank that held my original loan, thinking erroneously that I could save time and money. You took two months longer processing my loan than the other bank would have, and the money I saved on closing costs was more than eaten up by the extra months higher mortgage payments. I just got a call from someone at your bank claiming my mortgage payment was overdue. How can it be overdue when you withdraw it automatically from my cheque account? How come you do everything in writing and through the mail? If you would just call and ask me these questions instead of sending forms for me to fill out, things would go much more quickly.

If I havent made any additions to my house or property in the last year, you appraised it last year, and you have access to my tax assessment, why bother with another appraisal? You guys just like to pass around the business. I never know who to call for what. You have so many people working on my file. I know Ive repeated the same thing to a dozen different people. It took so long to get my loan approved that my credit report, appraisal report, and termite inspection report expired. You should pay for the new reports, not me. I drove down to your office in person today to deliver the lawyers papers, and I hoped to return them with your signature and whatever else you add to the closing packet. The loan specialist said that the closing agent wouldnt get to my file until the morning of the scheduled closing and that if she hit a snag, the closing could be postponed! Im taking off half a day from work to attend the closing and rescheduling is not convenient. I know you have lots of business, but I dont like being treated this way. I received a letter from one of your loan-payment specialists today, along with a stack of forms to complete specifying how I want to set up my mortgage payments. I signed all these at closing dont you read your own work? Im worried that if I fill them out again youll withdraw the payment twice from my account!

Task
As the newly appointed Manager Retail Banking at the Community Bank of Perth, you have been asked to review the current process, and taking customer comments into account, redesign the process so that it is customer friendly, efficient and protective of bank assets. Your report should:
use the service blueprint concept to analyse the current refinancing process giving an explanation as to why the bank might have originally designed it this way. describe, from an operations management perspective, the problems that have been caused by this process. use both the service-profit chain concept and service blueprinting to redesign the process so that value-adding steps are reinforced and cost-adding steps are reduced or eliminated. Construct a new service blueprint showing how the overall process can be improved.

The report should be a confidential report for the Chief Executive Officer of the Bank, and be presented as a suitably professional document.
This assessment item involves researching your assigned topic to enhance your understanding of Production and Operations Management (POM) concepts and utilisation of academic literature. Whilst you should AVOID using only textbooks, the prescribed textbook for the course should be cited in regard to broad operations management principles. You will be expected to present information and evidence from, and cite, at LEAST eight (8) relevant peer-reviewed, academic journal articles (minimum requirement). Refer to your recommended readings for examples of academic journals. While you can cite these articles, you must find eight (8) peer reviewed journal articles not listed in the course materials. The quality and number of citations will demonstrate the breadth and depth of the literature used to answer the questions. Your marker is interested in the analysis that you have developed from YOUR review of the literature and how well you use the literature to respond to the topic. AVOID presenting a descriptive account ONLY of your readings. What is required in this assessment is a critical evaluation of the academic literature as it relates to the specific details of the case study. Your marker is interested in the conclusions that YOU arrive at from YOUR evaluation of the literature and of the case study.

MGMT20085 OPERATIONAL ANALYSIS AND EFFECTIVENESS Assessment item 2 Marking criteria for case study analysis

Name: ...........

Student No.....

Your assignment will be assessed on the extent to which it meets each of the following criteria: CONTENT: Does your report demonstrate:
a thorough knowledge and understanding of the problem(s) identified in the case study expressed in the language of operations management? a critical review of the academic literature relevant to the operations management problem(s) identified in the case study? appropriateness of responses to the case study topic questions including an effective technical analysis of the operational situation along with accurate problem identification and specification? a well structured, concise and clear presentation of appropriate recommendations and implementation plan? appropriate use of argument within the paper, including a properly structured introduction and comprehensive conclusion? relevant and accurate literature (cited at LEAST eight (8) academic journal articles)? Weighting 15%

15%

15% 15% 10% 15% 5% 5%

PRESENTATION: Does your report demonstrate:

clarity of expression, grammar and spelling? strict conformity to referencing style of the Author-date system of referencing as set out in the Australian Government Publishing Service 2002, Style Manual for Authors, Editors and Printers, 6th edn, AGPS, Canberra? (Refer to Guide for students) appropriate presentation format (short business report) as required by the Assignment Writing Guidelines and presented within the word limit of 3500 words ( 10%)?

5%