DESI_PANDA
case study: Canucks Insurance Company (CIC) offers a wide range of…
case study:
Canucks Insurance Company (CIC) offers a wide range of insurance products and services including life insurance, health insurance, annuities, credit insurance, property and casualty insurance, and pension plan services. The company prides itself for providing a complete range of personal insurance products with quality service. It is a credible name in market for over 110 years and positively reviewed and rated well by top rating agencies. It is listed by Forbes Magazine in its “100 Most Trustworthy Companies” in Canada. Its robust and diverse product portfolio as well as good customer service and high service offering ensured long term success of CIC. It can bank upon its credibility to acquire new customers. It has been successful with more product offering and services and trying to attract clients who are looking to switch their existing Insurance Carrier. Despite its success, CIC management is concerned about its future. In recent years, due to low interest rate scenario in Canada hurts the profitability of the insurers. CIC is also facing highly competitive market leading to declining market share. Increase in complexity in the regulatory framework that company must comply with poses a threat to company. Rick Meyers, Vice President of Eastern region of CIC has been hearing lots of complaints from Corporate customers on Group Benefits (GB) plan setup. It appears that Quality is declining. He asked Linda McArther, Director of Corporate accounts to investigate to better assess the situation. ARGON is CIC’s proprietary application software for setting up and update group benefits (GB) policy for claim processing. GB Plan Setup Team is experiencing high volume of errors due to ARGON coding/data entry. For example, during April-June time period, ARGON error rate for Corporate clients was 32.61%, highest among all other system specific errors. ARGON error rate for small and medium size business was only 2% during the same period. The operation manager Alex Rodriguez reviewed historical data with Linda and concluded that the problem started beginning of this year. Error rate higher than 5% will cause extreme customer dissatisfaction. Rick and Linda set the goal of reducing error rate by at least 25% by end of Q3 of this year. If this goal is met, Plan Setup team will experience less customer complaints, rework, over time and will be able to reduce Lead Time. New Corporate clients will have positive onboarding experience. A recent report from Finance indicates that Plan Setup team can reduce over $560,000 in overtime if they can achieve this goal. The excessive overtime is due to 100% quality audit to detect mistakes and then correct those errors. Objectives are to come up with a set of prioritized short term and long term actionable, achievable, and measurable recommendations that will reduce ARGON specific error rate by 25% for Corporate plan setup. However, there are potential challenges with a DMAIC project. CIC has employee presence internationally and most of the subject matter experts (SME) work in a different time zone. A trend analysis reveals that most of the errors are committed by CIC’s Manila location employees. Six Sigma core team resides in Kitchener, Ontario. Moreover, due to peak season, SMEs have very limited availability. CIC’s GB Plan setup team also has very limited Data available. Both Rick and Linda decided to launch a DMAIC Six Sigma project to reduce number of errors. They have appointed you, a Six Sigma Green Belt, to execute the project. They have asked that you work with Emily Kirkland and Ronnie Beaver from Manila branch to do root cause analysis. Both Emily and Ronnie will be your Subject matter experts (SME). You will also work with Stephanie Roy, a Financial analysist to validate project cost and benefits. Using the template provided, an Argon Specific Error Reduction Project charter for CIC.
fill teh below template
Benefits
Required resources
Phase completion schedule
DMAIC phase
Phase completion date
Define (includes as-is process mapping)
Measure
Analyze
Improve
Control
