Read the Case Study: The Loans Processing Centre.
With respect to this case study, a major Australian Bank – OZBank (not their real name) with operations based in all Australian capital cities is considering establishing a centralised “back office” operations centre for processing all home loan applications, origination and settlements.
Observation of industry trends and attendance at industry “best practice” conferences have convinced senior management that significant economies of scale may be gained by consolidating all of their home loans processing into a single operations centre. Reductions in processing costs of the order of 30% or more per load have been quoted as normal.
Prepare a report no longer than 2,500 words by answering the questions at the end of the case study.
Note: Focus your analysis and recommendations mainly on issues related to operations strategy and strategy implementation. Your report should provide an appropriate mix of qualitative and quantitative assessment required to support any statements or recommendations.