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    Manzana

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    Devendra Aher
    Manzana Insurance is a property and commercial insurance company founded in 1902 in California. It faces stiff competition from another insurer offering higher commissions and faster turnaround times. The document analyzes Manzana's policy processing operations, which includes new policies, renewals, endorsements, and quotes. A process flow diagram shows the stages: distribution clerks, underwriting team, requests, and post-work. Distribution clerks have the highest capacity utilization at over 90%, making them the bottleneck. Increasing the capacity of this stage by hiring more clerks is recommended to improve throughput.

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    Manzana

    Uploaded by

    Devendra Aher
    283 views9 pages
    Manzana Insurance is a property and commercial insurance company founded in 1902 in California. It faces stiff competition from another insurer offering higher commissions and faster turnaround times. The document analyzes Manzana's policy processing operations, which includes new policies, renewals, endorsements, and quotes. A process flow diagram shows the stages: distribution clerks, underwriting team, requests, and post-work. Distribution clerks have the highest capacity utilization at over 90%, making them the bottleneck. Increasing the capacity of this stage by hiring more clerks is recommended to improve throughput.

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    manzana

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    Manzana Insurance is a property and commercial insurance company founded in 1902 in California. It faces stiff competition from another insurer offering higher commissions and faster turnaround times. The document analyzes Manzana's policy processing operations, which includes new policies, renewals, endorsements, and quotes. A process flow diagram shows the stages: distribution clerks, underwriting team, requests, and post-work. Distribution clerks have the highest capacity utilization at over 90%, making them the bottleneck. Increasing the capacity of this stage by hiring more clerks is recommended to improve throughput.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    283 views9 pages

    Manzana

    Uploaded by

    Devendra Aher
    Manzana Insurance is a property and commercial insurance company founded in 1902 in California. It faces stiff competition from another insurer offering higher commissions and faster turnaround times. The document analyzes Manzana's policy processing operations, which includes new policies, renewals, endorsements, and quotes. A process flow diagram shows the stages: distribution clerks, underwriting team, requests, and post-work. Distribution clerks have the highest capacity utilization at over 90%, making them the bottleneck. Increasing the capacity of this stage by hiring more clerks is recommended to improve throughput.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
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    At a glance
    Powered by AI
    The key takeaways are that the Distribution Clerks stage is the bottleneck in Manzana Insurance's policy processing operations and increasing the capacity of this stage is recommended.

    Manzana Insurance's main focus is on property, flood and commercial property insurances. Its main competitor is Golden Gate, another property insurance company.

    The four types of policies are RUNS, RERUNS, RAIN and RAP. They are prioritized and dealt with in the order of RUN, RAP, RAIN and RERUN.

    Manzana Insurance

    A Case Analysis

    Abhishek Kumar (0411024) Ankit Tripathi (0511005) Prashanth Kumar A (0511030) Thangarasu Sridhar (0511049) Vivek R (0511056)

    Agenda
    Company Overview Operations Process Flow Analysis Inference

    The Company overview


    Founded in Sebastapol, California in 1902 Main Focus: property, flood and commercial property insurances Stiff competition from Golden Gate, another property insurance company AGENTS: 128 independent agents: commission per new policy sold is 25% and renewal is 7% Agents defecting since Golden Gate offering more premium and less turn around time (TAT)

    Operations - Policy Processing


    Processes 4 types of policies:
    RUNS (Request for Underwriting) RERUNS (Policy renewal) RAIN (Policy endorsement RAP (Price Quotes)

    Policies dealt on a First In First Out (FIFO) basis Underwriting team prioritizes them in order: RUN, RAP, RAIN and RERUN

    Process Flow Diagram

    Process Flow Analysis


    Stage Avg. Processing Time (min.) 41 28.4 70.4 54.8 Capacity Capacity Utilization
    (%)

    DC UT R PW

    43.90 47.54 51.14 41.06

    88.83 82.04 76.27 63.97

    Capacity = No: of hours available / Avg. processing time

    Capacity Utilization of a stage = Demand for stage / Capacity Distribution Clerks Stage is the Bottleneck of the system since the capacity utilization is maximum for this stage

    Process Flow Analysis (Revised)


    Stage Avg. Processing Time (min.) 41 28.4 70.4 54.8 Capacity Capacity Utilization
    (%)

    DC UT R PW

    41.95 47.54 51.14 41.06

    92.96 82.04 76.27 63.97

    DCs also responsible for analyzing and distributing monthly data, researching and verifying insurance rates Assuming this takes 7.5 hours/month/clerk or 20min/day/clerk Further reduction in capacity of DCs hence an increase in their capacity utilization

    Inferences
    Distribution Clerks stage is the bottleneck for the operations Leads to subsequent stages being starved of policies and hence underutilized Demand peaking by more than 10% will result in an increase in processing time Recommendation: Increase the capacity of DC stage Recruit one or more clerks or increase their working hours

    THANK YOU !

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