Calculate the FTY and the RTY for this process?

[Wahid Ahmad]

A government agency handles application for assistance for local families. The process for each application includes:
– A representative enters the family’s information into a computer system
– A separate staff member reviews the information and uses an income scale to determine if the family is eligible for any assistance

All of the applications and customer feedback for MArch were reviewed, and the team found the following information:
– 643 families sought assistance in March
– 3 families were not able to complete the application process because the representative took too long to see them
-50 applications could not be passed to the second rep because of incomplete information
– 45 applications did not have complete information at first but that information was later received
– The second staff member was able to process all completed applications she received
– Of all letters that went out to families, 10 included incorrect information

Calculate the FTY and the RTY for this process?

Could anyone give me a step by step solution for this in detail?

[Ted Hessing]

Walid,

Here is how I would work it. Drawing the process first helps.

Step 1, intake: 643 families start. 3 drop out and 50 applications are incomplete, so 590 pass step 1 right the first time. FPY1 = 590 / 643 = 91.8%. 45 of the 50 are completed later (rework) and 5 are lost.

Step 2, eligibility: 635 applications arrive and all are processed. Of the 635 letters, 10 are wrong, so FPY2 = 625 / 635 = 98.4%.

Rolled throughput yield = 0.918 x 0.984 = 90.3%, the chance one application goes through every step right the first time. Traditional final yield = 625 good letters / 643 families = 97.2%, which hides the rework. Some texts call FPY “FTY”; check which your course uses.

You can learn more about the RTY & FPY concepts here.

Best, Ted.

[Author]

Posts