Manzana Insurance Fruitvale Branch - 3905 Words

Question 1. How important is turnaround time (TAT) in this business? In summary: The turnaround time (TAT) in the insurance business is very important. This because of the following arguments: - The most important factor to the agents in the insurance markets is the level of service provided. One of the most important aspects that determine the service level is the speed of handling the requests (TAT). - In addition, the factors that drive profitability in the industry are related to the needs of the customers: speed. Therefore, the TAT is also of great importance for the profitability in the industry. One additional comment, by optimizing the TAT the cost of handling requests is most likely to decrease what will increase†¦show more content†¦To which extent is TAT connected to the % loss rate (see Exhibit 6)? The increase in TAT is expected to be related to the increase in percentage loss rate. This because of the importance of this competitive factor in the current market situation. As the table below suggests there is an expected relation between the increase in the TAT and the increase in the loss rate. Particular in the loss rate of RERUN products. | |1990 | | | |1991 | | | |Q1 |Q2 |Q3 |Q4 |Q1 |Q2 | |As percentage of |18% |20% |27% |31% |42% |44% | |total RERUNS | | | | | | | *Exhibit 6. Shows the amount of loss rate in absolute numbers. *Page 7 is states that the average TAT is increased from around 3 days to more than 5 days. Question 2. Analyze and assess the operations system of Manzana. 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 inShow MoreRelatedManzana Insurance: Fruitvale Branch3103 Words   |  13 PagesCase Manzana Insurance: Fruitvale Branch Manzana Insurance is one of the largest property-liability insurers in California (USA). Fruitvale is one of Manzana’s smaller branches, with three underwriting teams supporting 76 agents in three geographical territories. Fruitvale is at this moment facing deteriorating profits due to operational problems. The effect of these operational problems is (particularly in comparison with competing insurers like Golden Gate) a high Turnaround Time (TAT), a highRead MoreManzana Essay5945 Words   |  24 Pagesotherwise—without the permission of Harvard Business School. 1 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: â€Å"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 Read MoreManzana Insurance Company991 Words   |  4 PagesCase: 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. ThroughRead MoreManzana Insurance Case3431 Words   |  14 PagesOPERATIONS 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 segmentRead MoreEssay on Manzana Fruitvale Case Study953 Words   |  4 Pagesproblem of Manzana Fruitvale is a significant loss in profits. It originates in operating performance failures characterized by a total throughput time of 8.2 days. This situation can be improved through structural changes in the underwriting process, reorganization of the incentive structure and redefinition of priorities concerning renewal policies. The total turnaround time (TAT) then decreases to 0.7 days. Industry Manzana Insurance is a leading player in the Californian commercial insurance spaceRead MoreManzana Case Operations1242 Words   |  5 PagesOperations Management Case Analysis - 2 Manzana Insurance (Fruitvale Branch) Group 13: â€Æ' ANALYSIS INTRODUCTION The Fruitvale branch of Manzana Insurance is facing stiff competition and is being severely outperformed by Golden Gate casualty Insurance. On every measure of performance, Fruitvale branch seems to be falling apart. Following are the problems faced by Fruitvale branch: 1) Turnaround Time (TAT) is too high TAT, or the number of days between theRead MoreManzana Insurance2137 Words   |  9 Pages____________________________________________________________ _________________________ 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 same. Their competitor Golden GateRead MoreManzana Insurance Case2311 Words   |  10 PagesManzana 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 runningRead MoreManzana Case7670 Words   |  31 PagesSystems 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