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OSCM - DAV Case

1) DAV was facing increased competition and losing good employees, so it implemented SPC to improve quality measurement and ensure processes were under control. 2) Some initial challenges in applying SPC to DAV's insurance services included determining appropriate sample sizes, measurement difficulties, and employee anxiety about public performance displays. 3) To address these issues, DAV increased rational sampling, automated charting, and made performance evaluations private between managers. This helped employees feel more comfortable with the new system.

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0% found this document useful (0 votes)
79 views9 pages

OSCM - DAV Case

1) DAV was facing increased competition and losing good employees, so it implemented SPC to improve quality measurement and ensure processes were under control. 2) Some initial challenges in applying SPC to DAV's insurance services included determining appropriate sample sizes, measurement difficulties, and employee anxiety about public performance displays. 3) To address these issues, DAV increased rational sampling, automated charting, and made performance evaluations private between managers. This helped employees feel more comfortable with the new system.

Uploaded by

nupurindus42893
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Operations and Supply Chain

Case Study

Deutsche Allgemeinversicherung
(DAV)
Why is DAV using SPC (Statistical Process Control)?

TO ENSURE QUALITY MEASUREMENT AND IMPROVEMENT

GOOD EMPLOYEES
INCRESED COMPETITION LEAVING/MOVING TO DAV'S TRADITIONAL WAYS
AND QUALITY IN MARKET OTHER FIRMS PROVING INEFFECTIVE

Insurance industry was DAV was known for DAV' traditional ways of
seeing an increase in the no. attracting effective managers working involved a lot of manual
of small players coming up but recently it saw its good work like transcribing hand-
and strengthening of the employees moving to others written policies and double
quality of customer service firms keying etc., which were time-
consuming and cost-ineffective.
What is SPC?
STATISTICAL METHOD TO CONSISTS VARIABLE CONTROL
MEASURE, MONITOR, AND CHARTS AND ATTRIBUTES
CONTROL A PROCESS. CONTROLL CHARTS.

Helps to improve quality, Attributes control charts are


efficiency, and cost reduction. used when it is not possible to
Helps organizations can easily measure the quality
predict the behavior of the characteristics of a product. It is
process and Match process based on the visual inspection
capability to product FUNCTIONS ON THE CONCEPT OF like accept or reject etc. Eg: P-
requirement VARIATION AND CONTROL charts.
LIMITS

The basic assumption is that all


processes are subject to variation.
Variation measures how data are
spread around the central
tendency. Control limits act as a
guide for what the process should
be doing.
What are the main challenges in applying SPC to a service industry?
ANXIETY AMONG
EMPLOYEES RELATED
TO THE NEW TOOL
PUBLIC DISPLAY OF
PERFORMANCE OF
EACH UNIT
DETERMINING
APPROPRIATE
SAMPLE SIZES
Challenges to
SPC in service AUTOMATIC
industry CHARTING
REQUIREMENT
UNFAIR
DISTRIBUTION
OF SAMPLING
WORK

MEASUREMENT
DIFFICULTIES
UNCLEAR
DEFINITION OF
WHAT CONSTITUTES
AN ERROR
How can DAV deal with the problems that arose in the initial phase of
implementation?

ACHIEVE EVEN/NON-BIAS, FOR THAT DEFECTIVE PROPORTION


SAMPLING NEEDS TO BE INCREASED SHOULD BE UNDER CONTROL

Rational Sampling: It is a The p-chart is a control chart


fundamental tool in SPC for used in statistical quality control
controlling a process and to track the proportion on
maintaining a quality defective items.
How can DAV deal with the problems that arose in the initial phase of
implementation?
PERFORMANCE EVALUATION
IMPROVE OVERALL AUTOMATION
OF SENIOR MANAGERS SHOULD
PROCESS CHARTING
BE 1-ON-1

Using process analysis Using a tool like RPA Senior managers evalutaion
tools to understand the (Robot Process will not be publicly disclosed
process flow. Automation) which will make them more
Eg Flowchart, Mistake- enthusiatic about the work
proofing
How to begin improving the performance of the processes after implementation
of SPC?

Applying p-chart to the project measurement phase


data we have the following analysis

Mean percent defective (p¯)= 0.05 and Standard


Deviation (σ) =0.01

Accordingly the upper(UCL) and lower control


limits(LCL) turn out to be 0.091 and 0.013 respectively.

Week 5 seems to be an outlier event where % defectives,


p, exceeds the UCL
How to begin improving the performance of the processes after implementation
of SPC?

Identify the causes behind such deviating performance. For eg:

1. Worker fatigue
2. Festive week leading to few people assigned greater work

Risk Mapping on the basis of Probability & Impact, Pareto


Analysis
Thank you!

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