Dav Case Study
Assignment 4: Deutsche Allgemeinversicherung case study
Chancellor University
Abstract
Deutsche Allgemeinversicherung, the second largest insurance firm in Germany, had decided to adopt a new quality improvement initiative: PMV in order to maintain its prominent position due to the looming competition and increasingly customer demands.
Kluck, the architect behind Prozessmessung and Verbesserung, was head of Operation Development at Deutsche Allgemeinversicherung (DAV). The PMV project was a revolutionary effort to use manufacturing style improvement techniques in insurance services; it will differentiate DAV in the industry and hopefully, maintain its prominent position. Kluck, however, was facing a number of difficult problems with the improvement phase of the project.
Statistical Process Control is an effective method of monitoring a process through the use of control charts. It would involve using Statistical techniques to measure and analyze the variation in processes. It can detect the presence of special causes of variation. To make a chart, you first have to study the process and find out how what sort of results to expect. Plotting ongoing results of the process on the chart can alert you to changes that could signal problems.
One of DAV challenge was that they did not know the actual accuracy rate of the process. Kluck was more interested in improving the accuracy number than knowing exactly what it is. Second, Kluck needed to have people use a tool which would become part of their everyday job, so that quality management would be a part of that job. And last, is to record honest numbers.
Insurance was becoming more ubiquitous and customers were having a hard time differentiating one firm from another. Of all their core capabilities, DAV’s customer service was seen as the best way of standing out of the insurance crowd. DAV management believed that customer service was a critical element in DAV strategy to maintain current
Chancellor University
Abstract
Deutsche Allgemeinversicherung, the second largest insurance firm in Germany, had decided to adopt a new quality improvement initiative: PMV in order to maintain its prominent position due to the looming competition and increasingly customer demands.
Kluck, the architect behind Prozessmessung and Verbesserung, was head of Operation Development at Deutsche Allgemeinversicherung (DAV). The PMV project was a revolutionary effort to use manufacturing style improvement techniques in insurance services; it will differentiate DAV in the industry and hopefully, maintain its prominent position. Kluck, however, was facing a number of difficult problems with the improvement phase of the project.
Statistical Process Control is an effective method of monitoring a process through the use of control charts. It would involve using Statistical techniques to measure and analyze the variation in processes. It can detect the presence of special causes of variation. To make a chart, you first have to study the process and find out how what sort of results to expect. Plotting ongoing results of the process on the chart can alert you to changes that could signal problems.
One of DAV challenge was that they did not know the actual accuracy rate of the process. Kluck was more interested in improving the accuracy number than knowing exactly what it is. Second, Kluck needed to have people use a tool which would become part of their everyday job, so that quality management would be a part of that job. And last, is to record honest numbers.
Insurance was becoming more ubiquitous and customers were having a hard time differentiating one firm from another. Of all their core capabilities, DAV’s customer service was seen as the best way of standing out of the insurance crowd. DAV management believed that customer service was a critical element in DAV strategy to maintain current
References: Constructing and Using Process Control Charts (2007) Harvard Business School, 9 (686-1180 Upton, D. (1997) Deutsche Allgemeinversicherung. Harvard Business School, 9 (696-084). Deutsche Exec Summary (wikispace.com/Deutsche+Exec+Summrary)