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Care-co In Los Angeles Case Solution & Answer

Care-co In Los Angeles Case Solution

In this scenario; FIFO will not use any tool to separate the policies according to their categories, because it decreases the time taken to segregate the prioritization of RUN policy. The new policy time calculated through mean time is 4.71, which means that the company is able to complete its activities within one week.

Number of Requests to be Processed RUNs RAPs RAINs RERUNs Workers per team Total in days
Distribution (4 clerks)              
Total # of requests at Distribution   1 3 1 11    
Mean Time   68.5 50 43 28    
Total Time taken   68.5 150 43 308 4 0.32
               
               
Underwriting (3 teams)              
Total # of requests at Underwriting   4 10 7 47    
Mean Time   43.6 38 22.6 18.7    
Total Time taken   174.4 380 158.2 878.9 3 1.18
               
Rating (8 clerks)              
Total # of requests at Rating   5 12 8 54    
Mean Time   75.5 64.7 65.5 75.5    
Total Time taken   377.5 776.4 524 4077 8 1.60
               
Policy Writing (5 Clerks)              
Total # of requests at Policy writing   5   9 56    
Mean Time   71 0 54 50    
Total Time taken   355 0 486 2800 5 1.62
TAT             4.71

Question 4

I would suggest Vijay the following changes to solve the issues and reduce the company’s  turnaround time:

  1. Right TAT Calculation

CareCo should use the right method to calculate TAT as Vijay should use the mean time for departments, i.e. mean time for distribution and underwriting and minimum time for policy writing and rating. Refer appendix 1. Along with that, the company should also rework on its service time.

  1. Arrange the prioritization of RERUNs

FIFO method is effective and the company should use it in all of its departments. RERUNs should be prioritized because there is no any particular reason to delay the RERUNs and process on last day. So, RERUNs should be released 2 days prior to the expiry date.

  1. Service Improvement

We would suggest Vijay to adopt quality management initiatives, such as: six-sigma, which would allow the company to reduce variations in the delivery timings and to reduce the mean time of processing the request. The inefficiencies in operations can be improved through six-sigma implementation.

  1. Restructuring

The company should restructure its activities and integrate automation in mechanical tasks. Integrating automation would allow the company to free few people in rating and policy department and these people can be trained to work in distribution department. Restructuring will allow the company to integrate the usage of technology in departments. And these departments would free some people, which would be helpful for the company.

Appendix 1

Number of Requests to be Processed RUNs RAPs RAINs RERUNs Workers per team Total in days
Distribution (4 clerks)              
Total # of requests at Distribution   1 3 1 11    
Mean Time   68.5 50 43 28    
Total Time taken   68.5 150 43 308 4 0.32
               
               
Underwriting (3 teams)              
Total # of requests at Underwriting   4 10 7 47    
Mean Time   43.6 38 22.6 18.7    
Total Time taken   174.4 380 158.2 878.9 3 1.18
               
Rating (8 clerks)              
Total # of requests at Rating   5 12 8 54    
Mean Time   75.5 64.7 65.5 75.5    
Total Time taken   377.5 776.4 524 4077 8 1.60
               
Policy Writing (5 Clerks)              
Total # of requests at Policy writing   5   9 56    
Mean Time   71 0 54 50    
Total Time taken   355 0 486 2800 5 1.62
TAT             4.7

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