Manzana Case Study
Manzana Insurance-Fruitvale branch Case Study
A. Get the Big Picture:
1) Why have been Manzana’s profit deteriorating? Analyze by taking the following questions as lead.
It is commonly believed at that RERUNs is less profitable than RUN and given less priority.Do you agree with this policy? Why?
We don’t agree. Reasons are as below:
1) Working Time (Refer to Exhibit 3).
RUN(mins) RERUN(Mins)
DC 128 43.2 (95%SCT per request)
UT 107.2 62.8
R 112.3 92.2
PW 89.3 67
Total 436.8 265.2 0.91Days 0.55 Days each person completion time per request
Summary: Standard completion time of RUN is more than RERUN.
2) Annualized Premium (Refer to P5 )
Annualized Premium revenue of RUN are $6724 average in 1991, $5706 average in 1989 and $6101 average in 1990 while RERUN are $6205 in 1991, $5130 in 1989 and $5630 in 1990.
Summary: Premium of RUN average is more than RERUN about $500 each.
3) Commission (Refer to P3)
RUN commission=25% premium +Bonus
RERUN commission=7% premium+Bonus
Base on annualized premium of RUN average is $6724 while RERUN is $6205 in 1991,
RUN commission=$6724*25%+B=$1681 RERUN commission=$6205*7%+B=$434.35 (Bonus of both are nearly identical)
Summary: RUN commission is more than RERUN by $1250 each.
4) Profitability in figures of Premium and Commission (Based on 2) 3)),
Profitability of RUN=$6724-$1681=$5043 each
Profitability of RERUN=$6205-$434.35=$5770.65 each
Summary: Profitability of RERUN is more than RUN.
5)Operating Steps (Refer to P5)
Operating Steps of RUNs and RERUNs are almost the same except reevaluation in RERUNs. But the rest steps are much more simple in RERUNs than RUNs because the old ones have original pages only needed to be amended slightly.
Summary: Processing in
A. Get the Big Picture:
1) Why have been Manzana’s profit deteriorating? Analyze by taking the following questions as lead.
It is commonly believed at that RERUNs is less profitable than RUN and given less priority.Do you agree with this policy? Why?
We don’t agree. Reasons are as below:
1) Working Time (Refer to Exhibit 3).
RUN(mins) RERUN(Mins)
DC 128 43.2 (95%SCT per request)
UT 107.2 62.8
R 112.3 92.2
PW 89.3 67
Total 436.8 265.2 0.91Days 0.55 Days each person completion time per request
Summary: Standard completion time of RUN is more than RERUN.
2) Annualized Premium (Refer to P5 )
Annualized Premium revenue of RUN are $6724 average in 1991, $5706 average in 1989 and $6101 average in 1990 while RERUN are $6205 in 1991, $5130 in 1989 and $5630 in 1990.
Summary: Premium of RUN average is more than RERUN about $500 each.
3) Commission (Refer to P3)
RUN commission=25% premium +Bonus
RERUN commission=7% premium+Bonus
Base on annualized premium of RUN average is $6724 while RERUN is $6205 in 1991,
RUN commission=$6724*25%+B=$1681 RERUN commission=$6205*7%+B=$434.35 (Bonus of both are nearly identical)
Summary: RUN commission is more than RERUN by $1250 each.
4) Profitability in figures of Premium and Commission (Based on 2) 3)),
Profitability of RUN=$6724-$1681=$5043 each
Profitability of RERUN=$6205-$434.35=$5770.65 each
Summary: Profitability of RERUN is more than RUN.
5)Operating Steps (Refer to P5)
Operating Steps of RUNs and RERUNs are almost the same except reevaluation in RERUNs. But the rest steps are much more simple in RERUNs than RUNs because the old ones have original pages only needed to be amended slightly.
Summary: Processing in