1991(6 months) Distribution 1 2 3 Rating Policy Writing

Agents 23 26 27
Policies in force 1151 1393 1402
RUNS originating as RUNS 162 100 88
RAPS converted to RUNS 112 79 83
Total RUNS 274 179 171
Total RAPS 761 513 524
Rejected RAPS 649 434 441
RAINS 196 125 130
RERUNS 636 840 605
Total Requests Processed 4680 1755 1578 1347 4680 3156
Renewals lost 403 227 296
Gross premiums 5915 6497 4988

Requests Processes per day 39 14.625 13.15 11.225 39 26.3

Due to rejection of RAPs

Capacity Utilisation
No. of Staf Avg time/req Avg time ofHours Capacity Capacity Utli
Distribution 4 41 0.683333 30 43.90244 0.888333
Underwriting Team 1 1+1 28.4 0.473333 7.5 15.84507 0.923
Underwriting Team 2 1+1 28.4 0.473333 7.5 15.84507 0.829911
Underwriting Team 3 1+1 28.4 0.473333 7.5 15.84507 0.708422
Rating 8 70.4 1.173333 60 51.13636 0.762667
Policy Writing 5 54.8 0.913333 37.5 41.05839 0.640551
1991(6 months) Distribution 1 Rating Policy Writing
Agents 23
Policies in force 1151
RUNS originating as RUNS 350
RAPS converted to RUNS 1798
Total RUNS 2148
Total RAPS 1798
Rejected RAPS 1524
RAINS 451
RERUNS 2081
Total Requests Processed 4680 4680 4680 3156
Renewals lost 926
Gross premiums 5915

Requests Processes per day 39 39 39 26.3

Capacity Utilisation
No. of Staf Avg time/rAvg time ofHours Capacity Capacity Utli
Distribution 4 41 0.683333 30 43.90244 0.888333
Underwriting Team 1 1+1 28.4 0.473333 22.5 47.53521 0.820444
Rating 8 70.4 1.173333 60 51.13636 0.762667
Policy Writing 5 54.8 0.913333 37.5 41.05839 0.640551

Though the capacity if policy writing is the minimum , the 85% rejection rate of RAPs will always result in lesser inflow to Poli
(From Exhibit 6, RAP consits of ~40% of the total; hence policy writing team would receive 34% less than the other tea
Hence Policy Writing team is not bottleneck as the capacity is only slightly less when compared to decreased number of reque
So the bottleneck is actually Distribution phase. Throughput if calucalted ny Little's formula 82/43.90 = 1.88 days
 Capacity Utli

ys result in lesser inflow to Policy writing.

ve 34% less than the other teams.)
to decreased number of requests they get.
formula 82/43.90 = 1.88 days