Process Design Matrix and Summary

Process Design Matrix and Summary

  • Submitted By: lboogie134
  • Date Submitted: 11/12/2013 9:59 PM
  • Category: Business
  • Words: 381
  • Page: 2
  • Views: 11

Process Design Matrix and Summary
Lauren Ware
OPS 571
October 16, 2013


Process Design Matrix and Summary
Executive Summary
Mortgage loans are produced by banks or mortgage firms and are provided to the borrower by financing a house they want to own. Handling mortgage loans and services would be the service provided to consumers and the house would be the product of the service. There are three different types of approaches which will be analyzed within this paper. The approaches are project, batch flow and line processes.
Project Process
Project process would entail the customization of the loan the borrower is applying for and what type of loan they need when trying to apply for the loan. The loan could be a refinance, newly originated loan or home equity loan. Each of these loans would be customized to produce the service that is needed; the borrower may be applying to purchase a new home, to lower their interest rate or to make repairs to their house. When using the project process the flow should be flexible and redefined with every project.
Batch Flow Process
Batch flow process produces higher volumes, variety and quantity. Volume is higher in this process due to same or similar products and variety is maintained through having the components assembled for the consumer or borrower and they are able to state what their goal is by what type of loan they are applying for, such as conventional, unconventional, FHA, and USDA loans. Quantity is maintained by grouping borrowers into a pool and having their loans processed around the same time. Pools can range from five loans to over a thousand loans, depending on the mortgage firm or bank that processes the loans.
Line Flow Process
Line flow process produces high volume but the services are unvarying. When a mortgage service company or bank is servicing loans there is a line flow process where loans go through different functions in order to be an active loan with the mortgage firm or...

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