OMGT1039: A well-known commercial bank in Australia is interested in estimating the number of new bank accounts opened by customers each year: Operations Management Assignment, RMIT, Singapore

Case 1: Bank Account Forecast

A well-known commercial bank in Australia is interested in estimating the number of new bank accounts opened by customers each year. The number of new accounts opened in this bank has increased slowly over years even during the global financial crisis (2008–2009).

Top management strongly believes that they need a long-term strategic plan for the bank which is a 5-year forecast for the number of new accounts opened. To achieve this aim, the bank operations manager examined past account data and also extracted the employment rate over 30 years (1991-2020). The resulting data are shown in below table:

• Using the following methods forecast for all possible periods. Show the graph of actual and forecast
  a. Moving average
  b. Linear trend
  c. Linear regression
• Discuss which method fits best for the bank strategic plan to forecast the number of new accounts. You need to justify the selection of one method over another.
• Do you think that the exclusion of a part of data (for example, the first 5-10 years) would affect the accuracy of the forecast? Briefly explain. Would such exclusion change your choice of the forecasting method in Question 2? Briefly explain

Case 2: Quality management

Completed forms from a particular department of an insurance company were sampled daily to check the performance quality of that department. To establish a tentative norm for the department, one sample of 100 units was collected each day for 15 days, with these results:

• Conduct a brief literature review of quality management in the service industries.
• Justify the tool in statistical process control to be used in this case, conduct the quality control process, and make the conclusion of its stability.