Manzana Insurance Case write-up Introduction This study is designed to determine why the Fruitvale branch of Manzana Insurance is performing so poorly for Property Insurance. Golden Gates‚ a competitor of Manzana‚ numbers are estimated to outperform Manzana Fruitvale branch as well. There are several problems that are leading to the poor performance at this branch. This past quarter turnaround time increased again reaching 6 days‚ where Golden Gate is sitting at 2 days. Also the system is running
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OPERATIONS MANAGEMENT GROUP ASSIGNMENT MANZANA INSURANCE CASE ANALYSIS OPERATIONS MANAGEMENT CASE ANALYSIS Case Background About the firm Manzana Insurance was founded in Sebastapol‚ California in 1902. It originally specialized in orchard and farm insurance. In 1906‚ after the San Francisco Fire‚ it saw an opportunity and expanded into a number of areas. The main lines of business initially were Commercial property insurance only. Then Manzana dabbled into commercial liability segment
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1. How is the Fruitvale branch doing? On viewing the financial performance of Manzana Ltd.‚ we see that the branch profitability is decreasing. There is a huge backlog of policies‚ which is resulting in delays for current orders too. The number of new policies and endorsements appeared to be stagnating‚ whereas the rest of the industry reported moderate growth rates. According to the figures of the present quarter‚ Fruitvale had shown a decline in insuring new policies whereas Golden Gate
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Management ____________________________________________________________ _________________________ Case Study Manzana Insurance [pic] Presented to: Prof B. Mahadevan Submitted By Group 12 (Section B) Peeyush Razdan (0811115) Shalekh Banka (0811124) Shalem Anand Tirkey (0811125) Shreshth Sharma (0811128) Sumeet Mittal (0811131) Manzana Insurance As per the case facts‚ Manzana Insurance’s Fruitvale branch is the least performing branch and the senior VP seeks a report on the
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PROD 529 Fall 2010 Manzana Insurance: Fruitvale Branch Case Executive Summary In 1991‚ Manzana Insurance’s Fruitvale branch was suffering on many performance measures including obtaining new policies‚ retaining current policies‚ long turnaround times‚ and the accumulation of a backlog of renewal policies. There are a number of problems leading to these poor performance measures including unbalanced work load on the underwriting teams‚ department utilization‚ work prioritization‚ and some
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correctly the TAT. In exhibit #3 shows that the TAT for a particular week is 8.2 days (0‚6+3.4+2.0+2.2)‚ but this means that the process is carried as a batch process‚ every process must be finished in order to go to the next one‚ and that is not the case (The possibility is very slim (5%)4) Other observation is that the 95% STC (Standard Completion Time) used is too conservative‚ using the Little’s law‚ we can estimate a theoretical lead time of 2‚1 days ( Inventory (I) = 82 requests‚ Job’s arrival
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1.How is the Fruitvale Branch doing? How the branch is doing according to key external performance measures-financial performance‚ turnaround times‚ late renewals‚ and renewal rates. Fruitvale encounters a significant loss of business due to late renewals‚ and long lead times on new policies and quotes. From the following perspectives‚ we can have a better view of what Fruitvale Branch’s problems are:Financial performance: Profitability is declining. It suffered a loss of $174 and $121 in 1st and
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Case: Manzana Insurance - Fruitvale Branch (Abridged) Harvard Business School Executive Summary Fruitvale ’s core management problem is the low performance due to an unacceptable long turnaround times (TAT). Especially because of the late Renewals many of Fruitvale´s customers are turning to its major competitor Golden Gate. The operating performance needs to be improved by eradicating the bottleneck in Underwriting. This will be achieved by restructuring and simplifying the process. Through
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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)
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A. Get the Big Picture: At Manzana the new policies (RUNs) are believed to be more profitable because they “commanded the highest premiums” and also because they considered that costumers would renew their policies anyway so they didn’t need to pay as much attention to the RERUNs. Nevertheless‚ we consider that these are not the most profitable policies and for instance they should not be given high priority. Table 1: Manzana Profit for 2nd quarters Looking at the profits we can see that there
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