Q1. Discuss the symptoms and three distinct causes of problems at Manzanas Fruitvale branch.
Manzanas Fruitvale Branch is suffering from a number of problems. First and first of all sympton is the net loss of $174,000 and $121,000 during the first two quarters of 1991, respectively. These ar the first losses reported by their commercial insurance business in the last three years. Next, not further is the frequency of policy renewal requests being processed deep steadily increasing but they have also see an uptick in lost renewals as a result. The culprit is Fruitvales turnaround time (TAT).
The calculated TAT for the week terminate 9/6/1991 is 8.2 days which, when compared to the 1-day TAT promised by their largest competitor, flourishing Gate, is exceptionally high. Their backlog of policy requests (WIPs) for said week is 82 and the number of new policies and endorsements do not seem to be generating as much revenue as in the past. As pricing and commission differences among insurance firms have narrowed, agents have increasingly made referrals based on customer service (i.e. mobile TAT).
Fruitvales backlog and TAT indicate the presence of a bottleneck which is resulting in idle time for some employees epoch overburdening others.
Moreover, they are losing renewal business to competitors while trying to detect their employees, especially the senior underwriters with many years of experience, from going to halcyon Gate. Fruitvale Branch is in serious trouble and in wishing of major changes if they wish to become profitable again.
We focused on three major causes of the problems at Fruitvale. First, the FIFO method is not strictly enforced at Fruitvale. Employees prioritize RUNs and RAPs over RAINs and RERUNs. The universal belief is that new policies are more profitable for the lodge so employees give the highest priority to RUNs and RAPs. RERUNs are placed at the bottom of the list. The pervasive belief among underwriters that RERUNs will take care...If you urgency to get a full essay, order it on our website: Orderessay
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