Deutsche Allgemeinversicherung
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- Date Submitted: 03/10/2013 05:28 AM
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DEUTSCHE ALLGEMEINVERSICHERUNG
OPERATIONS MANAGEMENT MGT 653
1) Why is DAV using Statistical Process Control (SPC)?
DAV is using SPC because they know that the industry’s quoted accuracy numbers for their firm was incorrect and to maintain their status as industry leaders they wanted to know their true accuracy so that they could make improvements and maintain quality throughout their operation.
The Head of Operations also noted that SPC was being used in his opinion because it was important to use a tool that measured the process rather than the people and one that protected employees from the wrath of senior managers.
Furthermore, it was noted that within the Insurance industry ‘exceeding customer expectations for the quality of service was an important way to maintain current customers and attract new ones’. Quality in customer service was becoming an important differentiation tool and a critical element in DAV’s strategy.
To this end, DAV became aware that they needed to develop capabilities that were not only valued by customers but distributed throughout the company. Therefore, in an aim to achieve their strategy of delivering quality service and maintaining their status as industry leaders they sought the use of the SPC tool to measure and hopefully improve their processes and achieve more accuracy in their data.
2) What are the challenges in applying SPC to a service industry compared with manufacturing?
SPC is designed to measure and analyze variations in a consistent process and is typically used in the manufacturing industry. In this case, it was applied to measure inconsistencies in customer service activities.
Some of the challenges however, in applying SPC to the service industry, compared to the manufacturing industry, lies in the intangibility and inseparability characteristics of providing a service, and in the variability of how,...
OPERATIONS MANAGEMENT MGT 653
1) Why is DAV using Statistical Process Control (SPC)?
DAV is using SPC because they know that the industry’s quoted accuracy numbers for their firm was incorrect and to maintain their status as industry leaders they wanted to know their true accuracy so that they could make improvements and maintain quality throughout their operation.
The Head of Operations also noted that SPC was being used in his opinion because it was important to use a tool that measured the process rather than the people and one that protected employees from the wrath of senior managers.
Furthermore, it was noted that within the Insurance industry ‘exceeding customer expectations for the quality of service was an important way to maintain current customers and attract new ones’. Quality in customer service was becoming an important differentiation tool and a critical element in DAV’s strategy.
To this end, DAV became aware that they needed to develop capabilities that were not only valued by customers but distributed throughout the company. Therefore, in an aim to achieve their strategy of delivering quality service and maintaining their status as industry leaders they sought the use of the SPC tool to measure and hopefully improve their processes and achieve more accuracy in their data.
2) What are the challenges in applying SPC to a service industry compared with manufacturing?
SPC is designed to measure and analyze variations in a consistent process and is typically used in the manufacturing industry. In this case, it was applied to measure inconsistencies in customer service activities.
Some of the challenges however, in applying SPC to the service industry, compared to the manufacturing industry, lies in the intangibility and inseparability characteristics of providing a service, and in the variability of how,...