...The Manzana Case Manzana Insurance- Fruitvale Branch Case Study The Manzana Case Manzana Insurance- Fruitvale Branch case study Executive Summary The Fruitvale Branch of Manzana is facing its bitter reality of declining profitability and potential loss of market shares to its main competitor-Golden Gates due to its rising renewal loss rate and expanding turnaround time. In our analysis, we dig into several issues that were possible causes for the problem and tend to provide readers with feasible solutions that may resolve the issues on hand. Examples of such issues as we have identified in the case include, but not limited to, various departments’ deviation from FIFO system, potential capacity and staffing problems, uneven workload among three underwriting teams, outdated SCT for computing TAT, and inaccurate computation process for TAT. In order to lower the number of late renewals and reduce turnaround time, our recommendations include, but not limited to, the following: 1) Making it mandatory for all departments to comply with the FIFO system and implementing monitoring plans for overseeing the entire underwriting process to ensure FIFO is strictly implemented; 2) Revising the incentive scheme for Fruitvale Branch employees to further assist with the successful implementation of FIFO system; 3) Expanding the number of days RERUNs are released to DCs prior to the due dates to ensure that there is sufficient time for relevant departments to complete the requests...
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...Harvard Business School 9-692-015 Rev. January 30, 1997 Manzana Insurance - Fruitvale Branch (Abridged) It was a Monday morning in early September 1991. Bill Pippin had been at Manzana for only a week, but already he was thinking that perhaps he should have taken a different job. He gazed at a note on his desk from John Lombard, his boss at the Fruitvale branch: "I'm giving a speech at a conference on property insurance, so I'll be out of the office until next week. Please give this some thought while I'm gone." The note was attached to a memo from Tom Jacobs, Manzana's senior vice president for underwriting operations: To: John Lombard From: Tom Jacobs Subject: Second Quarter Performance The performance figures on Property Insurance for the second quarter have just been completed, and Fruitvale is at the bottom of the list again. More important, Golden Gate is killing us in your territory, and they have just announced a promise of one-day turnaround time to all agents. If something isn't done immediately to improve your operating performance, a lot of our agents are going to defect to Golden Gate, and some of us are going to need new jobs. Here are some of the numbers: Manzana-Fruitvale This Quarter This Year New policies Endorsements Renewals Turnaround time (average) Renewals late Renewal loss rate 326 206 1,063 6 days 44% 47% This Quarter Last Year 278 235 1,253 5 days 20% 33% Golden Gate This Quarter (estimated) 375 300 1,400 2 days NA 15% Something has got to...
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...OM Manzana Case Study - Team 2 (Rishi, Geoff, Vimalan, Rose, and Jonathan) Manzana Insurance Fruitvale Branch case study Executive Summary Manzana’s Fruitvale branch is suffering from declining profitability. The main issuesresulting in this phenomenon are its falling renewal rate and rising turnaround time.There are systemic issues with the process for handling requests that have led to thisdeterioration, including the incorrect prioritization of requests and the unevendistribution of workload amongst its three underwriting teams. There are also problems of understaffing in the Distribution and Underwriting teams and possibleidle capacity in the Rating and Policy Writing teams. To compound matters, the branch is using an incorrect methodology for computing turnaround time. Addressingthese underlying issues is key to Manzana’s ability to compete with Golden Gate,whose quicker guaranteed turnaround time will generate loyalty among independentagents and result in further loss of business for Manzana. To prevent this, thefollowing steps are recommended:-(i)the FIFO system on all requests received should be strictly implemented;(ii)the reward system for employees should be reviewed and aligned to supportthe implementation of (i);(iii) RERUNs should be sent to Distribution Clerks at least three days prior to theexpiry of the old policy;(iv) The workload among the three underwriting teams should be better balanced;(v)The SCT for the rating and policy writing teams need to be reviewed...
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...Systems Analysis and Design Project Stage 3 New System Specifications And Prototype Based on Harvard Business School case 9-692-015 Manzana Insurance – Fruitvale Branch Presented to Professor Michael Palley Stevens Institute of Technology MGT 772 SB Analysis and Development of Information Systems By Team 3 TEAM 3 Systems Analysis and Design Project Stage 3 MGT 772SB Analysis and Development of Information Systems Professor Michael Palley Table of Contents SYSTEM OVERVIEW ...............................................................................................................................................4 DESCRIPTION .............................................................................................................................................................4 POLICY REQUEST TYPES ............................................................................................................................................4 BACKGROUND ...........................................................................................................................................................4 CURRENT ORGANIZATIONAL PROBLEMS AND GOALS FOR THE NEW SYSTEM ............................................................4 FILE DESIGN..............................................................................................................................................................7 BACHMAN DIAGRAMS IN THIRD NORMAL FORM (3NF)...................
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...Version 0.99 University of Illinois at Urbana-Champaign College of Commerce and Business Administration BADM 467 - Process Management Summer 2003 Dilip Chhajed Nick Petruzzi chhajed@uiuc.edu petruzzi@uiuc.edu 323 DKH 328D DKH office hours: office hours: Description Process Management includes a myriad of activities: insuring that a product or service is of high quality, choosing the appropriate design and technology for producing a good or service, planning and controlling the flow of materials or customers so that lead times are minimized, and distributing finished goods or services. Relevant decisions range from how much material to order for making a product, to determining how much capacity is needed to provide a good level of service, to evaluating which technology will best meet a company's needs. In short, this course focuses primarily on developing and applying tools and techniques to ensure that the right products and resources are at the right place at the right time so as to maximize profit within a business process or supply chain. The “products” could be either goods, services, or both; and the “resources” could be either material, people, money, information, or any combination of the four. In the first part of this course, we will focus on process design and improvement issues by studying the relationships between key process parameters such as capacity and throughput, and by analyzing processes in order...
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...2) Analyze and assess the operations system of Manzana (system for processing insurance requests as depicted in Exhibit 2) by taking the following questions as a lead: a) How do the various jobs (RUN, RERUN, RAIN, RAP) flow through the system? How much time do they take? The figure below shows the flow through the system of the various jobs (RUN, RERUN, RAIN and RAP) taken exhibit 2 into account. The red numbers in the figure show the daily processed requests on average based on the data of 1991 which can be found in exhibit 7. The daily requests that are coming into the system are calculated by adding all various jobs (RUN’s, RERUN’s, RAIN’s and RAP’s) processed in the first 6 months and dividing this outcome by 120 (E.g. 6 months x 4 weeks x 5 days). This means that the teams can process 39 requests on average per day. (350+1798+451+2081)/(6*4*5) = 4680 / 120 = 39 requests per day on average. All further calculations can be found in the table below. |Task |Calculation in # of requests per day |Outcome in # of requests per day | |Calculate generated RERUN |(2081)/(6*4*5) |17.3 | |RUN/RAP/RAIN |(350+1798+451)/(6*4*5) |21.7 | |Total # requests per day |(350+1798+451+2081)/(6*4*5) |39 ...
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