Running Head: PROJECT CHARTER 1

Project Charter

Name of the Student

Name of the Teacher

Date

Name of the Institute

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Project Charter

Introduction

Bajaj Allianz Life Insurance is considered as a joint venture amid Bajaj Finsery Limited

which was in the past the part of Bajaj auto limited and which was retained by Bajaj Group. As it

comes under the private insurance company of India, it provides the product of insurance for

security and financial planning. BALIC, as discussed is a branch of Allianz general insurance

whose main aim is to deal with different policies of life insurance (Gupta, & Jain 2018). In 2001,

the company is well-known to sell non-participating and participating plans of life insurance.

It’s headquartered is present in Pune, a city of India (Chakraborty, 2017). The company has also

obtained the certificate of “Insurance Regulatory and Development Authority” (IRDA)

certificate on the 3rd of August 2001 in order to conduct the business of life insurance in the

country of India. The company is present throughout the world (Joshi, 2018).

Into the insurance sales, there are at least 12 employees into a particular branch which

mainly aims at selling the policies of insurance to a particular area. The employees are generally

allowed the job of selling the policies of life insurance to the people. The resources are attained

through the customers of Bajaj ltd database(Joshi, 2018). The company has specifically

introduced the digital branches by the help of Mosambee. Mosambee is regarded as a handheld

device which providesa range of services associated with the branch of mobile and helps

customers with various customer services (Siddiqui, & Das, 2019).

Business Processes

Process of insurance policy business or workflow layouts several work steps in a

particular process to ensure improvements in productivity, risk management and customer

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experience. Some of the insurance processes are complex and vary with regards to the product

(Masayu & Dachyar, 2018). The basic insurance policy business process starts with an

interaction with the potential customer. After a thorough and detailed introduction of the

company, an appointment is fixed with the customer for meeting and building the repo of the

company. In the meeting,the customer gets familiar with the various family policies offered by

the company, the insurance agent explains the product and what the company is offering. Most

of the customer is reluctant to buy the insurance policy, so insurance agent needs to pitch and

convince the customer to buy the product. Then again insurance agent talks to the spouse with a

clear description of the policy and convinces her to buy the policy. Collection of all the

documentation from the office is significantly imperative to complete the documentation from

spouses 1 and spouse 2. Finally, a cheque is collected by the insurance agent after finalizing the

documentation from the customer (Ranjbar & Haratemeh, 2018). Setting the suitable scope, of a

lean project is essential for success. Articulating what is in scope and out of scope enables team

members to advance their guides and focus to operational activities. It also enables for the

tracking of transparent progress. Setting scope of a project of lean is the same with

implementation a document of scoping, which describes just the scope of the lean project.

Setting scope, along with the anticipiated results and metrics to be used, is supportive in

illuminating the nature of lean project as well as interactive to stakeholders.

Problem-solving through lean

A sustainable lean requires an ongoing problem-solving process by each one in an

organization. Success is flexibly linked and depends upon the training of the workforce.

Principle of lean and set of techniques supports management in terms of process improvements

that enable the management to recognize wastages and techniques to reduce them. A lean project
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means to directly analyze and observe the work and at the spot where the work has occurred.

Finally, construct and standardization the ongoing pattern of success (Worley & Doolen, 2015).

Purpose of the project

The main aim of lean management concepts in the service industry such as insurance

company is to eliminate wastages and defects while providing valuable services to the customers.

Even a partial lean project implementation is beneficial for service operations by reducing

wastages and defects to improve the performance of the services offered in an insurance

company (Nicoletti, 2016).

Business case

As discussed, the BALIC is the insurance company which mainly deals with various

policies of life insurance. It mainly deals with the policies of individual, couple policies to the

policies of a combined family (Siddiqui, & Das, 2019).

Importance and justification of lean for the success of the business

For the success of the insurance business, it is important to apply lean management

because it helps to solve various organization problems in a sustainable and easy way. Through

lean, the sector easily minimized the processes by cutting the steps of the processes (Sahoo &

Yadav, 2017). Through minimizing the step, added value for the customer enhances and further

contribute to improving the service quality.

Mapping technique, one of the lean tool assist to recognize the steps and activities hay do

not add any value and are considered as waste. The management of lean implies an all-around

impact on the insurance companies, in case if the company opts for the process of lean will
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greatly affect the techniques of business such as the performance of sales, the method of

management and on the budgetary (Kadarova, & Demecko, 2016).

Through the implementation of lean, the insurers can eliminate the low scalability as well

as increased cost. The implementation of lean makes sure all the steps involved are aligned and

focused on one piece at a time, eliminating any respected unnecessary and wasteful activities

form the process and also to adding value (Kadarova, &Demecko, 2016).It is important to

incorporate the project of lean management as due to its implementation, increased satisfaction

of the customer is obtained. According to the study of, lean in the insurance company can

enhance the satisfaction of customer amid points 10 and 15 (Kadarova, &Demecko, 2016).

Benefits of lean management

Lean management has various benefits for internal and external customers. Internally

lean management can assist the team to manage various risk factors and resources efficiently. By

the help of lean, knowledge is empowered to the team and the team can then make better

decisions for the company. One of the major element of visual and lean work management is

higher visibility, such as higher visibility of work progress for instance who is conducting the

work, the priorities of the task and the long plan. Through lean management, form team member

to the senior employees gets as much information they want (Bortolotti et al, 2015).

For external customers, the very first lean principle is recognizing values as perceived

through the customer. The success of a company takes place when the customer is satisfied.

When the customer is provided by the high-quality products as well as services, the customer

becomes happy and then keeps visiting the respected company for their needs (Furman, 2019).

Wastes and defects in the business process

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Wastes and defects in the business process of an insurance business which insurance

agent use to grow and improve the business. Initially, engage the workforce in the identification

of the activities that are wasteful in nature, after thorough identification management tends to

reduce or eliminate the wastages and defects. The activities considered as the wastages and

defects in the insurance company are as following in which 5 why analysis methology is defined

as definition, Measurement, Analysis, Improvement and Control are mentioned (Conger, 2015).

Defects: services, or information that are incorrect, inadequate, or late e.g., data entry mistakes

or missing data are defects in the business process. In this case, defects are categorized as, if an

insurance agent collects wrong documents from the client, and that could create confusion and

misunderstanding for both the parties and chances of defects can occur.

Motion

This type of waste comprises of employee unnecessary movements or machinery. which are

complicated and a possible causeof an injury, lengthy processing time and prolonged the

business process. In other words, do whatsoever is needed to organize a process where employee

less efforts output more and do little as possible to accomplish the job.in order to measure the

unnecessary motion waste, one need to analyse the over all business process and plan

accordingly to the analysis and eliminate unwanted movements to attain the optimal outcomes in

less time. Un necessary motions could be controlled by training the staff with deliverance of

through knowledge to sacure more time by avoiding unwanted motions and movements.

Transportation

This kind of waste is occurred when movement of material and resources doesn’t add a value to

the service. Additional and unwanted movements of resources and materials could be expensive

and time consuming to the business and might be the reaon of possible damage to quality of
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services. Transportation also force you to compensate the additional space, time and machinery.

Measurement and analyzing transport motion will require the analysis of business process where

the transportation is needed or where it is irrelevant. It could be improve or eliminate by focusing

to avoid unwanted and non value addition trips and transport. It is also control by regulating the

transport by making rules to avail the facility on demand and requirement.

Metrics in the lean project

Lean metrics are the measures that can help to control and monitor and the procedure of

developing process like continuous quality can be expedited to customers and by identifying the

development variations and opportunities (Vignesh, Suresh & Aramvalarthan, 2016)

Work in Process

External customers are satisfied with the quick processing of the service in insurance case

tracking of work that is initiated, but not yet accomplished. In the case of the this litratire lean

project in the insurance company, it is observed that work in process is interrupting the overall

flow of productivity. Work in process in the insurance industry is significant to be accomplished

at the time and it can also support to improve the flow of work value. Work could not add value

to the organization, customer or team unless the work is finished. The feature cannot be

beneficial until it is life for customer use. Consequently, it is advantageous to keep on working to

the task that is initialized it can be seen how it relates to the capacity of the system (Myerson,

2012).

Queues

Queues are formed in the business process when working delays between different

phases. Queues characterize as the majority of a work service overall life cycle, it is significant
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to recognize how queues influence the team and where they take place in the work process. In

insurance case limiting the time that queues wastes, reduction and minimizing the queues can aid

to decrease the total life cycle time and keep services flowing throughout the business process

(Myerson, 2012).

Lead time

It is total time consumed for the work to be processed from one activity to another on service

processing. It is measured as the time between two activities. In life insurance company total

lead time is measured by calculating the total time consumed for serving one client to sell a

service. From initial activity to the last, it includes the sum of all activities waiting time and lead

times in between several processes (Myerson, 2012).

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VSM

Meeting the
Fixing an Travelling
Talking to the customer and
appointment time
customer building repo

20 min 10 40 5

Talking Convincing to
about various Travelling
take the time
family
insurance
policies

15 10 20

Talk to the
spouse of the Convincing to Collect all the
Travelling
customer take the documents
time from office.
about the policy
policy

15 10 40 40

Do the Travelling
Travelling Documentation
documentation
time time with spouse 2
with spouse 1

40 30 20 30

Collect the
cheque

10
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Lead time
Lead time is defined as the time interval between initializing and accomplishment of a
production or service process.
Total Lead Time of the process 355 min.
Overall lead time from talking to the customer till assigning the check to insurance agent is total
lead time of the process.
Lead time for each process step
The lead time of each process varies due to the nature of the customer and product. However, an
estimated lead time
Total value-added time
Value-added time is defined as the time consumed to improve the result of a process. This is
usually the processing time linked with production or service. In the VSM chart addition of all
value-added activity time is total value-added time.Total value-added time is 195 minutes in the
sale process of an insurance policy.
Total non value-added time
Non-value-added timein a service or production process is the time consumed on a step in that
procedure that does not add value to the finished service or a product.Non-value added time is
160 minutes in the sale of an insurance policy.
Value-added ratio
Value-added time divided by total time spent in the sale of an insurance policy represents the
total value-added ratio i.e. 195/355=0.549295.
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References

Bortolotti, T., Boscari, S., & Danese, P. (2015). Successful lean implementation: Organizational

culture and soft lean practices. International Journal of Production Economics, 160, 182-

201.

Conger, S. (2015). Six sigma and business process management. In Handbook on Business

Process Management 1 (pp. 127-146). Springer, Berlin, Heidelberg.

Chakraborty, J. (2017). Firm Performances in Indian Life Insurance Industry: Non-Parametric

Analysis. SCMS Journal of Indian Management, 14(4), 95-111.

Furman, J. (2019). Impact of selected lean management tools on work safety. Multidisciplinary

Aspects of Production Engineering, 2(1), 253-264.

Gupta, H., & Jain, A. (2018). Disclosure of corporate governance practices in Indian life

insurance companies. Disclosure, 3(2).

Joshi, M. (2018). Job Stress and Employee Performance A Comparative Study of Public and

Private Sector Life Insurance Companies.

Kadarova, J., &Demecko, M. (2016). New approaches in lean management. Procedia Economics

and Finance, 39, 11-16.

Masayu, A. R., &Dachyar, M. (2018). Designing Improvement of Procurement Business Process

Reengineering Approach: A Study Case of Insurance Company. In MATEC Web of

Conferences (Vol. 248, p. 03003). EDP Sciences.

Myerson, P. (2012). Lean supply chain and logistics management. New York, NY: McGraw-
Hill.
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Nicoletti, B. (2016). Innovation in Insurance. In Digital Insurance (pp. 6-46). Palgrave

Macmillan, London.

Ranjbar, M., &Haratemeh, M. H. (2018). Examining the determinant factors affecting the sale of

life insurance.

Siddiqui, S. A., & Das, S. (2019). Evaluating the Efficiency of Leading Indian Life Insurance

Companies. Indian Journal of Economics and Development, 7(7), 1-4.

Sahoo, S., &Yadav, S. (2017). Analyzing the effectiveness of lean manufacturing practices in

Indian small and medium sized businesses. In 2017 IEEE International Conference on

Industrial Engineering and Engineering Management (IEEM) (pp. 6-10). IEEE.

Vignesh, V., Suresh, M., &Aramvalarthan, S. (2016). Lean in service industries: A literature

review. In IOP Conference Series: Materials Science and Engineering (Vol. 149, No. 1,

p. 012008). IOP Publishing.

Worley, J. M., &Doolen, T. L. (2015). Organizational structure, employee problem solving, and

lean implementation. International Journal of Lean Six Sigma, 6(1), 39-58.