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.

Topic: operational analysis effectiveness
Paper instructions:
report
executive summary
Table of Contents
answer Q1 in this Q there is diagram
answer Q2 discussion
answer Q3 there is diagram
conclusion
references at least 10 resources
Length: 3500 words ±10% (excluding front matter and reference list) 2
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 loan’s approval.
Stage 2: Loan processing
The customer’s 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 customer’s file and the file is sent to the loan agent (and sometimes
the bank’s 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 customer’s 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 bank’s 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 month’s 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 haven’t 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 I’ve
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 lawyer’s 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 wouldn’t get to my file until the morning of the scheduled closing and that if
she hit a snag, the closing could be postponed! I’m 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 don’t 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—
don’t you read your own work? I’m worried that if I fill them out again you’ll 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