Manzana Insurance: Fruitvale Branch
Case
Manzana Insurance: Fruitvale Branch
Manzana Insurance is one of the largest property-liability insurers in California (USA). Fruitvale is one of Manzana’s smaller branches, with three underwriting teams supporting 76 agents in three geographical territories. Fruitvale is at this moment facing deteriorating profits due to operational problems. The effect of these operational problems is (particularly in comparison with competing insurers like Golden Gate) a high Turnaround Time (TAT), a high percentage ‘Renewals late’ and a high ‘Renewal loss rate’. For managing the deteriorating profits an analysis of the operational problems Fruitvale faces is required. Questions / Answers: 1. Analyze and assess Manzana Operations (that process Insurance requests as depicted by exhibit 2) by taking the following questions as a lead: a. What is the capacity of the various resources? b. What is the utilization of the various resources? c. Does Manzana have adequate capacity to meet the demand? Ad a. In the following tables we present a calculation of the capacity of the four resources of Fruitvale.
Departments: a. Weighted average processing time per request (Exhibit 4) b. Requests per hour (60 minutes / a) c. Employees per team (Exhibit 2) d. Hours per day per fte (Page 2) e. Total amount of hours/day (c*d) f. Capacity, requests per day / resource (b*e) Distribution 41,00 1,46 4,00 7,50 30,00 43,90 Underwriting 28,40 2,11 3,00 7,50 22,50 47,54 Rating Policy Writing 70,40 0,85 8,00 7,50 60,00 51,14 54,80 1,09 5,00 7,50 37,50 41,06
The capacity of the four resources varies from 41,06 requests per day (Policy Writing) to 51,14 requests per day (Rating). Ad b. With the capacity of the four resources and the request data for 1991 (months) given in Exhibit 7, it is possible to calculate the utilization of the resources. Fruitvale is facing an average of about 41,28 requests per day, based on the first 6 months of 19911.
1
Requests:
Per year
Per day
1
Departments:
Manzana Insurance: Fruitvale Branch
Manzana Insurance is one of the largest property-liability insurers in California (USA). Fruitvale is one of Manzana’s smaller branches, with three underwriting teams supporting 76 agents in three geographical territories. Fruitvale is at this moment facing deteriorating profits due to operational problems. The effect of these operational problems is (particularly in comparison with competing insurers like Golden Gate) a high Turnaround Time (TAT), a high percentage ‘Renewals late’ and a high ‘Renewal loss rate’. For managing the deteriorating profits an analysis of the operational problems Fruitvale faces is required. Questions / Answers: 1. Analyze and assess Manzana Operations (that process Insurance requests as depicted by exhibit 2) by taking the following questions as a lead: a. What is the capacity of the various resources? b. What is the utilization of the various resources? c. Does Manzana have adequate capacity to meet the demand? Ad a. In the following tables we present a calculation of the capacity of the four resources of Fruitvale.
Departments: a. Weighted average processing time per request (Exhibit 4) b. Requests per hour (60 minutes / a) c. Employees per team (Exhibit 2) d. Hours per day per fte (Page 2) e. Total amount of hours/day (c*d) f. Capacity, requests per day / resource (b*e) Distribution 41,00 1,46 4,00 7,50 30,00 43,90 Underwriting 28,40 2,11 3,00 7,50 22,50 47,54 Rating Policy Writing 70,40 0,85 8,00 7,50 60,00 51,14 54,80 1,09 5,00 7,50 37,50 41,06
The capacity of the four resources varies from 41,06 requests per day (Policy Writing) to 51,14 requests per day (Rating). Ad b. With the capacity of the four resources and the request data for 1991 (months) given in Exhibit 7, it is possible to calculate the utilization of the resources. Fruitvale is facing an average of about 41,28 requests per day, based on the first 6 months of 19911.
1
Requests:
Per year
Per day
1
Departments: