Opmt 620: Dav Operations Management

Case Study

Sedigheh Ziaei (Dorri) (1711036)

University Canada West

Professor: Larry Earnhart

OPMT 620: Operations Management

  May 6, 2018

Abstract:

• This case is about an insurance company, which was established by Andreas Steininger in Germany in 1966. Despite the fact that the company was one the best insurance service companies in the world, it had to deal with the major issue of performing operations along with conducting and developing the quality of services. In this paper, I will concentrate on the statistical process control (SPC) throughout DAV and also present some approaches to improve upon the way the company is acting and doing the SPC. In fact, DAV as a successful and big insurance service company encountered a problem due to instability and fluctuations in economy. To deal with the issue, which was based on information accuracy, the company applied the statistical technique named SPC to improve accuracy and performance. Furthermore, there were some challenges to use SPC and the company could improve the processes much better by using an application system based on Internet to reduce inaccuracy.

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•    Table of Content:

• Introduction……………………………………………………..page: 5
• Problems…………………………………………………………page: 6
• Solutions………………………………………………………….page: 8
• Conclusion………………………………………………………..page: 9
• References………………………………………………………..page: 10

• Deutsche Allgemeinversicheung
• Introduction:
• This case is about an insurance company, which was established by Andreas Steininger in Germany in 1966. Despite the fact that the company was one the best insurance service companies in the world, it had to deal with the major issue of performing operations along with conducting and developing the quality of services. In this paper, I will concentrate on the statistical process control (SPC) throughout DAV and also present some approaches to improve upon the way the company is acting and doing the SPC. The critical situations and suggested solutions are covered below.
• Situations and Problems:
• DAV as a successful and big insurance company decided to keep its great position by making steady progress towards managing the company due to the fact that a couple of small rival companies struggling hard to defeat the main company’s market. The back office of the company named DAKG considered the retail part of the company by performing a number of new activities including processing new customers’ applications, altering some information related to policies, implementing new rules, and recording personal information of the clients. As a matter of fact, two serious problems occurred owing to ailing economy that was not stable enough then. The first problem was that the quality of work reduced tremendously on busy days as the transaction volume was twice of regular days. To tackle this problem the company increase the number of staff who were unpracticed and untrained. The second problem was related to the information accuracy. To make the operation performance better the company needed to know what to do with the data such as numbers when they got them. Therefore, to solve the problem DAV used SPC as a technique of process measurement and improvements to measure accuracy rate perfectly. Actually, SPC is a statistical method to assess the project’s variation. It is used to control processes to check any out of control variations. Although ,for the service company, it was difficult to figure out what to measure and avoid errors because of human behavior, the company used SPC as it facilitates measuring and improving processes. Ultimately, the company applied this statistical technique to improve not only the accuracy of processes but also the performance of operations (J. Lim, 2018).
• Solution:
• For process improvement before applying SPC, I can offer an Internet application for the customers to use for entering their personal information to increase accuracy rate of information. This system will work in a way that if there is any incorrect or missed information, the customers cannot submit the information unless they correct it.  In fact, this system is significantly effective as it can check the data to figure out any inaccurate information and the company staff do not need to be worried about accuracy.
• Conclusion:  
• In conclusion, DAV as a successful and big insurance service company encountered a problem due to instability and fluctuations in economy. To deal with the issue, which was based on information accuracy, the company applied the statistical technique named SPC to improve accuracy and performance. Furthermore, there were some challenges to use SPC and the company could improve the processes much better by using an application system based on Internet to reduce inaccuracy.
• References:
• J. Lim, 2018, Deutsche Allgemeinversicheung, Harvard Business School
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