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Process Measurement and Improvement
The case is based on an insurance service company which traced back to 1994. The company was facing problems in controlling and improving service quality and operation performance. This essay will stress on introducing the SPC (statistical process control) to DAV and providing suggestions on improving both the SPC and the company’s operation performance. The five questions required are covered and allocated…show more content… The average of fraction defective is merely a number which cannot tell us what to do with it even when we get it. Thus SPC is more accurate and systematic to analyze the process of customer service operation.
2. Primary challenges
There are basically two challenges that implementing the SPC to a service company:
1) Difficulties of deciding and selecting what to measure and
2) Too much uncertainty because of the human behavior
3. Sample: how SPC works
Here is an example of employing SPC (P-Chart) for DAV’s PMV project.
The first 12 weeks of the data displayed in Appendix I represent the diagnostic period for the Policy Extension Group.
From the calculation (See Appendix I), we get the 3-sigma control limits for the process, i.e. UCL=0.091, LCL=0.014. These control limits indicate that if the error proportion is within the range of [0.014, 0.091], the process is under control; if not, the process is out of control.
Here is the P-Chart for the data from Week 13 to Week 30.
It is then clear that the process is out of control in Week 23 and Week 24.
In addition to process control, SPC can also help lower rank employees to better understand the different standards of the services and draw their attention to self-control of fraction