MANZANA INSURANCE: FRUITVALE BRANCH
1. How is Fruitvale branch doing?
Fruiutvale branch is not doing well in their business since their service levels were falling.
Issues faced were:
•High turnaround time.
•Improper scheduling of work.
•Decline in profits.
2. What are the causes of these problems?
Causes:
•High Turnaround time.
•Uneven work pattern.
•Improper prioritization of operating procedures.
3. Can you identify the problems in the way Manzana is calculating turnaround time
in Exhibit 3?
•In order to calculate the average turnaround time, mean processing time can be
used instead of 95% SCT (95th percentile of the Standard Completion Time) to
obtain more precise values.
•The calculation for Underwriting teams isn’t accurate due to the variations in
workloads.
4. If you were Bill Pippen, what would you recommend that Fruitvale do?
•Decrease turnaround time – Automation of certain tasks and request processing to
make it more efficient thereby reducing turnaround time.
•Following concurrent engineering approach over FIFO thereby solving multiple
requests at a time.
•Uniformly distribute the workload of underwriters.
•Use new method for the calculation of turnaround time.