Deutsche Allgemeinversicherung Solution
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Deutsche Allgemeinversicherung
Process Measurement and Improvement
Introduction
The case is based on an insurance service company which traced back to 1994. The company was facing problems in controlling and improving service quality and operation performance. This essay will stress on introducing the SPC (statistical process control) to DAV and providing suggestions on improving both the SPC and the company’s operation performance. The five questions required are covered and allocated into different parts of the essay.
DAV: Situations and Problems
1. Background Information
1) DAV was one of the world’s largest insurance companies whose main business is in Germany and in retail insurance. DAV knew that it was significant to maintain that position as smaller insurance companies armed themselves to attack their primary market and were seeking the way to improve the management process.
2) DAKG was the back office part of the operation, focusing on the retail side of the business and it processed applications from new customers for policies, changed policy information, carried out various legal registrations, and kept track of a customer’s personal information.
2. Problems and current methods
Problems: As DAV’s Business volumes were exposed to seasonal fluctuations and longer circle change in the economy, two critical problems emerged as a drawback to improve the operation performance:
1) A difficult capacity management problem emerged as in the heavy days the transaction volume will be twice of lighter days. The work quality decrease significantly during the heavy days; meanwhile, in order to monitor and control the quality, tremendous human resources (and possibly highly unpracticed and
| | |
| | |
Deutsche Allgemeinversicherung
Process Measurement and Improvement
Introduction
The case is based on an insurance service company which traced back to 1994. The company was facing problems in controlling and improving service quality and operation performance. This essay will stress on introducing the SPC (statistical process control) to DAV and providing suggestions on improving both the SPC and the company’s operation performance. The five questions required are covered and allocated into different parts of the essay.
DAV: Situations and Problems
1. Background Information
1) DAV was one of the world’s largest insurance companies whose main business is in Germany and in retail insurance. DAV knew that it was significant to maintain that position as smaller insurance companies armed themselves to attack their primary market and were seeking the way to improve the management process.
2) DAKG was the back office part of the operation, focusing on the retail side of the business and it processed applications from new customers for policies, changed policy information, carried out various legal registrations, and kept track of a customer’s personal information.
2. Problems and current methods
Problems: As DAV’s Business volumes were exposed to seasonal fluctuations and longer circle change in the economy, two critical problems emerged as a drawback to improve the operation performance:
1) A difficult capacity management problem emerged as in the heavy days the transaction volume will be twice of lighter days. The work quality decrease significantly during the heavy days; meanwhile, in order to monitor and control the quality, tremendous human resources (and possibly highly unpracticed and