Deutsche Allgemeinversicherung Case Study

Table of Contents

Executive Summary Page 3

Issues Identification Page 4

Environmental and Root Cause Analysis Page 5

Alternatives and Options Page 7

Recommendation and Implementation Plan Page 9

Monitor and Control Page 10

Appendix A Page 12

Executive Summary

Deutsche Allgemeinversicherung (DAV) is one of the world’s largest insurance companies with 51% business in Germany. Although DAV is the second largest firm in Germany, the insurance industry is a competitive market where DAV is carefully thinking about how to maintain its market position with smaller companies entering in the marketplace.

With high competition for any goods and services businesses, there is an ever-increasing demand for high quality products and services at low costs. Therefore, it is logical that if a company remain competitive in the modern market place, one of its main focuses should be to consistently provide outstanding customer service to differentiate itself from its competition with minimal errors.

In order for a firm like DAV to determine its service levels and error rate, DAV requires reliable data in order to evaluate company’s performance as well as in comparison to its competitors. As a result, the PMV program was established by Annette Kluck and it was rolled out on an experiment basis in May of 1995. Problems immediately surfaced; for example: definition of what is right/wrong, excessive sampling by some groups, and process checklist is different between the 15 groups.

Through the results of the pilot program, my recommendation is to implement an online application website and continuation of the SPC pilot study program.

Short-Term Issues:

a) Lack of education around SPC: Various departments are thrilled to be involved with the PMV pilot project. However, management did not focus on the importance of providing education and training to all involved around the purpose of SPC and its benefits / values.

b) Another short-term issue is around the increase hiring of temporary labour due to business volatility and to keep costs down. Although, this practice is cost effective