Description Detailed Process Map SIPOC Data Collection Plan (Potential X's) Hypothesis test of dat ...

---

Description Detailed Process Map SIPOC Data Collection Plan (Potential X's) Hypothesis test of data  1 attachments Slide 1 of 1 attachment_1 attachment_1 UNFORMATTED ATTACHMENT PREVIEW This Project is based on a hypothetical company (Morning Glory Associates, "MGA") that faces many of the same issues that companies are dealing with today. The Project illustrates the entire business improvement effort through every phase of the DMAIC methodology. You will complete challenging exercises (project deliverables) that build on the tools and concepts taught in this course. You will understand what true business improvement is. Morning Glory “MGA” is a Business Insurance company that conducts business throughout the Pennsylvania Commonwealth. During the past 2 years, MGA has fallen from the second business insurance provider to 4th, in the Pennsylvania Commonwealth. The business Insurance industry has continued to grow in Pennsylvania. Poor customer service and process are the primary cause for MGA falling behind its competition. A Lean Six Sigma team has been formed to address their delivery issues. MGA identified that their process required 23 days to process insurance applications as compared to 16 days for the competition. The total process time of 16 days was what business insurance customers consider to be Critical to Quality (CTQ). By not meeting the CTQ of 16 days, MGA estimated that it was losing $105.5 million in lost revenues while incurring an additional 10.5 million in process inefficiencies. The primary goal for the Lean Six Sigma team is for MGA to meet customer expectations for the mortgage application/approval determination process throughout Pennsylvania. 1|Page PROJECT TEAM Project Role Time Dedicated to Project (Hrs./Week) Team Members Function in the Business Jeff Davidson Senior vice President Sponsor 2 Judy Waters Manager continuous Improvement Black Belt 3 Bob Decarten Project Manager Green Belt 25 Janice Pearl Finance Team Member 10-15 Norm Brossen Operations SME Team Member 10-15 Herald Gonzales Processing SME Team Member 10-15 Additional Support As required from other departments PROJECT MILESTONES Milestone Phase Start Date Completion Date Define June 15th In Progress Measure July15th August14th Analyze August 15th September 14th Improve September15th October14th Control October15th November 14th Closure November 15th December 14th 3|Page Business Insurance Process Flow The MGA business insurance process starts when a customer contacts a local Insurance Agent (IA) to request insurance coverage for their business. The IAs are located across the state. The IA emails the customer a business insurance application to be completed and emailed back to the IA. The IA forwards the application to their Regional Office Manager (ROM). An Application Processor (AP) is assigned to the application. The AP reviews the application. The AP contacts the IA to request additional information (clarity on business, areas of commitment, potential liability areas, etc.). The IA contacts the customer to request further information and clarity. The customer gathers the additional information and emails it to the IA. The IA emails the information to the AP. With the additional information, the AP reviews the application and additional information to ensure that it is complete. If there is missing or incorrect information, the AP contacts the IA to make the necessary corrections. If the information is correct, the AP forwards the information to an Underwriting Officer (UO). The UO reviews the customer information to evaluate risks, and to determine pricing. The UO sends information to the ROM to determine insurance acceptance or not. ROM forwards the final determination to the AP. If the application is accepted, the AP creates an insurance policy. If the application is rejected, the AP creates a rejection letter. When this is complete, the AP forwards the final determination package to the Regional Officer for review and approval. The AP then sends the determination package to the IA and schedules a call with the IA to review the final determination package. The IA reviews the final determination package. The IA sends the final determination package to the customer and schedules call. When the customer reviews the final determination package, signs it, and sends payment. At this point the MGA Business Insurance Policy process is complete. Primary People and Departments Involved in the Application Process Customer Insurance Agent (IA) Regional Office Manager (ROM) Application Processor (AP) Underwriting Officer (UO) 4|Page Business Insurance Customer 2 Application Processor (AP) Regional Office Manager(ROM) 1 Insurance Agent (IA) Project Name: Business Insurance Process 3 Con1 tacts IA To request Insurance 4 As-Is Process Map 9 10 Gathers additional information Mail Application To IA Complete Application Send Information To AP 1 5 Mail Insurance Application To customer Forwards Application to ROM 6 Forwards Application to AP 8 7 Reviews file 12 11 Requests additional information From Cust. Reviews file Is Information Comp. Underwriting Officer(UO) No 5|Page Go to Step 13 Quick Win Opportunity 6|Page Easy To Implement Reversible Fast To Implement Within Team’s Control Cheap To Implement Name Function / Organization Name Function / Organization Tammy Johnson GM Pittsburgh Office Susan Beal Regulation and Compliance Officer Joseph Petrini GM Philadelphia Office Laura Jones CFO Thomas Kerns GM Harrisburg Office LSS Team Members Various Bus. Insurance Customers NA Mark Canter VP Sales Karen Milnes Underwriting Manager Lu Suni Agents Manager, Pittsburgh Maria Bandleris Agents Manager, Harrisburg Mike Brown Agents Manager, Philadelphia 7|Page Segment Customer Issue External It takes too long to process loans External There are too many errors on the final determination packages External It is exceedingly difficult to reach anyone at SI Internal No clear roles and responsibilities to who owns the loan process Internal Too much time is spent reviewing the application Customer Need Reduce loan processing cycle time Translate the following VOC into CTQ’s 8|Page CTQ 15-day loan processing cycle time Measure Total Loan Processing Cycle Time # Of Final Determination Packages with Errors % Of Defective Incoming Applications Application Cycle Time Per Department Segment 9|Page Operational Definitions The total time in days from when a customer submits the application to when the is mailed by location; Time stamp calculation in database Display Histogram, Run Chart, Control Chart Process Improvements Previous Average Processing time (days) Process 1-Connect with IA to request mortgage insurance 1.4 Process 2-Email Mortgage Insurance application 1.2 Process 3- Complete Application 1.2 Process 4-Send Application to IA 1.2 Process 5- Forward Application to ROM 3.9 Process 6- Forward Application to AP 3.4 Process 7-Review Application 2.5 Process 8-contact Customer to request additional information 3.8 Process 10-Gathers additional information and sends to AP 1.3 Process 11- AP Reviews File 1.4 Process 12-Is the application complete? If not contacts AP 2.4 10 | P a g e New Process Time (days) Process 13- UO Review risks and determines pricing 2.5 Process 14- Sends the application to the ROM for determination 3.7 Process 15-Is the application complete? 2.4 Process 16-Is the application Rejected or Accepted? Creates Acceptance 2.6 Process 18-Create Insurance policy 1.2 Process 19- ROM Review and approve the decision 2 Process 20-Sends determination package to IA and schedules a call with IA to review determination 1.4 Process 21-Is the determination accepted? 1.2 Process 22-Signs and send payment 1.1 11 | P a g e Purchase answer to see full attachment User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.