This report is an analysis of the processes involved in the underwriting operations at the Fruitvale branch of Manzana Insurance and attempts to identify the reasons for the inefficient performance
MANZANA INSURANCE
- The Fruitvale Branch
A Case Analysis
Arjun Dev 0211083
Ashish Goel 0211185
Basumathary Anthony 0211086
Govind Agarwal 0211095
Manish Pansari 0211105
Sridhar Narasimhan 0211136
This report is an analysis of the processes involved in the underwriting operations at the Fruitvale branch of Manzana Insurance and attempts to identify the reasons for the inefficient performance and to suggest measures to improve the overall performance of the operations at the branch.
Objectives:
> To minimize the turnaround time
> To reduce the loss rate and the late rate for RERUNs
> To ensure an efficient staff allocation scheme
> To identify the reason(s) for the large Turn Around Times (TATs)
> To ensure a competitive TAT with respect to the time proposed by Golden Gate
WORK FLOW DIAGRAM:
The calculation of TAT is done with the 95% SCT. Considering the large standard deviations for times for each process, the SCT is much larger than the mean and this gives a skewed picture of the actual time taken for the process.
As per exhibit 3, which considers the scenario for the week ending September 6th, 1991, the Turn Around Time (TAT) is approximately 8.2 days. This calculation of the TAT ignores the overlapping of different stages. For example, the underwriting department does not start processing the request till the distribution clerk hands over the request to it i.e. the underwriting team is idle when the distribution clerk is busy. In reality this is not the case and the Underwriting team works in parallel on a request along with the rest of the department and is idle only when no request is pending with it.
An analysis of the Gantt chart shows that the Underwriting process seems to be the bottleneck in the whole operation. It can be seen from the chart that when the underwriting process in progress the Rating and the Policy Writing departments and idle for a long span of time. This is due to the comparatively larger time that the underwriting process takes (3.4 throughput days) when compared to the other departments (Rating - 2.0 and Policy Writing - 2.2). Hence, improvements must be targeted at the Underwriting process.
- The Fruitvale Branch
A Case Analysis
Arjun Dev 0211083
Ashish Goel 0211185
Basumathary Anthony 0211086
Govind Agarwal 0211095
Manish Pansari 0211105
Sridhar Narasimhan 0211136
This report is an analysis of the processes involved in the underwriting operations at the Fruitvale branch of Manzana Insurance and attempts to identify the reasons for the inefficient performance and to suggest measures to improve the overall performance of the operations at the branch.
Objectives:
> To minimize the turnaround time
> To reduce the loss rate and the late rate for RERUNs
> To ensure an efficient staff allocation scheme
> To identify the reason(s) for the large Turn Around Times (TATs)
> To ensure a competitive TAT with respect to the time proposed by Golden Gate
WORK FLOW DIAGRAM:
The calculation of TAT is done with the 95% SCT. Considering the large standard deviations for times for each process, the SCT is much larger than the mean and this gives a skewed picture of the actual time taken for the process.
As per exhibit 3, which considers the scenario for the week ending September 6th, 1991, the Turn Around Time (TAT) is approximately 8.2 days. This calculation of the TAT ignores the overlapping of different stages. For example, the underwriting department does not start processing the request till the distribution clerk hands over the request to it i.e. the underwriting team is idle when the distribution clerk is busy. In reality this is not the case and the Underwriting team works in parallel on a request along with the rest of the department and is idle only when no request is pending with it.
An analysis of the Gantt chart shows that the Underwriting process seems to be the bottleneck in the whole operation. It can be seen from the chart that when the underwriting process in progress the Rating and the Policy Writing departments and idle for a long span of time. This is due to the comparatively larger time that the underwriting process takes (3.4 throughput days) when compared to the other departments (Rating - 2.0 and Policy Writing - 2.2). Hence, improvements must be targeted at the Underwriting process.