Introduction
The case discusses the role of applying the operation management tools and techniques into the related company in order to decrease the additional cost associated with the running operations as well as increase the overall profit margins. So under the case, it has been analyzed that Manzana Insurance was considered to be a target company for applying different roles of operation management tools and techniques because the company was in a serious trouble maintaining the position for the future due to the fact that it was pressurized by its competitor regarding the use of proper operational performance in order to boost the profits overtime.
So it shows that to manage the things in a proper way, Manzana's management should take critical assessment regarding improve the operational efficiency and compete against the targeted competitor of the market. Therefore, from the case, it is determined that Bill Pippin (Manager at Fruitvale Branch) was considering a change in the overall operational activities.
He analyzed the current performance of the company and concluded that it would suffer a huge loss if necessary changes would not be implemented immediately. So he wrote a memo to the vice president of the company, where he explained that a company might look for the loss if the situation would be based on the current performance.
MANZANA INSURANCE FRUITVALE BRANCH (ABRIDGED) Harvard Case Solution & Analysis
Thus he took a serious assessment under which, he analyzed the whole operation with the use of operation management techniques. The annual summary that he showed to the top management reflected the negative impact over the company's entire performance. Under which, it illustrated the lack of new policies as compared to the standard level. Also, he showed the renewal loss of the underwriting based on more spending time to cover.
These all bullet points clearly indicated that the company would not participate in competition with the Golden Gate because it's performance was far away from the counter one. Therefore, it is concluded that with all these issues discussed in a case, Manzana should reorganize and re-change its current operational activities by utilizing the more RUNS and RAPs under the minimum period.
For that, a minimum level of employee contribution would decrease the necessary costs overtime, but the problem was that less employee would incur more time. Thus to manage the things under control, Bill Pippin would first analyze the utilization rate each processing unit performed; then he would contribute equal distribution among the departments to manage the things related to the company's objective to reduce the cost.
This would decrease the overall turnaround time and also reflect a decrease in the renewal loss that could be directly proportional to the company's overall loss. With all these required changes, the case clearly shows all the steps that would need to consider in order to reduce the cost of the company...................
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