Background: Manzana Insurance is faced with losses in the termination 2 quarters and declining profits everyplace the last 5 quarters. There are many potential problems in the operations processes of Manzana Insurance. Firstly, the Turn Around Time(TAT) is high at an estimated 6-8 eld compared to the competitor who had been maintaining a TAT of 2 days, and is now promising to bring it down to 1 day. Secondly, the Renewal Loss localize has increased from 33% to 47% over the last quarter. Thirdly, in that respect is uneven distri barelyion of workload amongst underwriters. The rating and polity musical composition surgical incisions may be overstaffed. The incentive system may non be the best as it is giving rise to a lot of backlogs and uneven prioritization among different types of tasks. Besides, it also violates the FIFO policy implemented by the company. Some of the data used by the company to estimate TATs and Throughputs is outdated as it has been taken from 1986, whereas it was mentioned in the case that there were significant process improvements between 1986 and 1991. Also, the standardized deviation for SCT is very high at about 30 for some of the processes. This makes the data and calculations in some cases highly unreliable.
Also, the clientele needs to be in a close pass and coordination with the agents but the number of underwriters per agent may not be optimum when compared to other branches of Manzana Insurance. The rewards system is skewed towards RUN and against RERUNS. synopsis: As shown in the exhibit 1, the bottleneck is in the underwriting subdivision for RUN, RAP and RERUN requests, whereas the bottleneck is in the Policy department for the RAIN request. First of all there seems to be an over emphasis on processing the RAP requests. This is because RAP requests homecoming to only 15% RUNS. This is a very low make up and is leading to the delay of RAIN and RERUN requests. As indicated in exhibit 7, the flow time is the minimum for RERUN requests, but also the estimated losses...If you want to get a full essay, distinguish it on our website: Orderessay
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