risk surveys lean six sigma storybook. so what is a risk survey?

Risk Surveys

Lean Six Sigma Storybook

So what is a Risk Survey?

Project Charter

Problem Statement

Anecdotal evidence suggested that the turnaround of Risk Surveys was up to;

10 months for new business,

12-18 months for renewals

This was due to a substantial backlog.

Project Charter

Project Goal:

To reduce the completed Risk Survey Report cycle time and ensure that

90% are processed within the turnaround targets of

10 days for new business,

30 days for renewals and

Project Charter

Project Constraints:.

Project Scope:

In Scope: All Risk Surveys

Out of Scope: The Underwriting functionBranch Processes

Process Map of the current processRisk Survey Process

RA

Reg

iona

l Mgr

RA

Reg

iona

l Mgr

Ris

k A

dvis

orR

isk

Adv

isor

P&

R (

Mic

helle

)P

&R

(M

iche

lle)

A/c

Mgr

/ B

ranc

hA

/c M

gr /

Bra

nch

Clie

ntC

lient

Bro

ker

Bro

ker

Bus

ines

s S

uppo

rtB

usin

ess

Sup

port

No

Yes

Leave as quote

Issue

Issue or leave as Quote?

Quote and Rate

Requires RA?

Apply UW Guidelines

??? See Comments

Log Survey Request in

Lotus Notes

Update Survey Request

(PolNo) ??

Complete Quote/Sale 2

Complete Quote/Sale 1

Process Sale 1

??1

Application:Client Contact

and Risk Details

START

Quote documentation?

Quote Only

Process Sale 2

??2

Produce Priorisation list for outstanding Risk

Surveys (monthly)

Send to RA Regional Manager

(via Email)

Make any changes regarding

allocation of RA

Send to relevent RAs

Receive Prioritisation

list

Receive list from Regional RA Manager

Contact Client / Broker to arrange

appointment

Appointment Arranged

Appointment Arranged

Travel to Site for Risk Survey

Conduct Survey

Record findings on Survey Report from SR Template (Short Survey

Form vs Miltipurpose Survey Form)

Save to ‘S’ Drive

Survey Uploaded

to LN

25days

Diary ‘bring up’ for 25 days time

Prepare Business Support update /

Client letter describing changes to terms

At ‘bring up’: Ascertain what has/not been completed.

Adjust policy terms accordingly

Approval (SUM?) of letter and

recommendations

Prepare Business Support ‘update’

Assess, draft Client letter of

Recommendations

Update LN and Polisy

(?)END

Recomm.s for client

Provide details of completed

recommendations (or not)

Engage Client to effect Recomm.s

(?) New (?) policy terms advice to

client ??

??3

Process date update and

policy changes if applicable

??4

Process Policy changes if applicable.

In Scope

Voice of Customer Matrix

Lean Six Sigma Fundamentals

Data Collection Plan

Baseline Data - Completed Surveys

6005004003002001000

Median

Mean

240225210195180165150

1st Quartile 71.00Median 195.003rd Quartile 335.00Maximum 567.00

196.07 230.03

155.06 202.00

149.67 173.76

A-Squared 6.94P-Value < 0.005

Mean 213.05StDev 160.81Variance 25860.88Skewness 0.543418Kurtosis -0.811502N 347

Minimum 0.00

Anderson-Darling Normality Test

95% Confidence I nterval for Mean

95% Confidence I nterval for Median

95% Confidence I nterval for StDev95% Confidence I ntervals

Days to Complete Re Surveys

Time (Days) Taken to Complete Surveys

Sept 2010

595 days or 20 months - The greatest time taken to complete a New Survey.

Currently 97% defect rate

Sept 2010

567 days or 19 months - The greatest time taken to complete a Re Survey.

6005004003002001000

Median

Mean

1751501251007550

1st Quartile 38.00Median 97.003rd Quartile 248.00Maximum 595.00

132.05 171.63

62.91 123.09

131.70 159.83

A-Squared 10.15P-Value < 0.005

Mean 151.84StDev 144.40Variance 20851.88Skewness 0.975082Kurtosis -0.120055N 207

Minimum 0.00

Anderson-Darling Normality Test

95% Confidence I nterval for Mean

95% Confidence I nterval for Median

95% Confidence I nterval for StDev95% Confidence I ntervals

Days to Complete New Surveys

New Survey goal of 10 days is about here. Everything to the right of the red line is a defect.

Re Survey goal of 30 days is about here. Everything to the right of the red line is a defect.

Value Stream Map of the Process

Branch

Beg Aug ’10 · 347 Risk Surveys

submitted.· 161 New Surveys· 186 Re Surveys· BackLog currently at

2425 requests outstanding

Branch submit request

for Survey

Input Mechanisms(Branch fillout request

via LN Form)

Risk Advisor Processing

Output Mechanisms(Risk Advisor advises Branch of Completion) Branch

P & R Team prioritise and send list to

Regional Manager(Monthly)

Regional Mgr passes to

RA’s (monthly)

RA preps survey

visit

RA Travels to Location

RA On Site

RA Uploads to LN

Database

End Aug ‘10· 587 Risk Surveys

Completed.· 255 New Surveys· 363 Re Surveys· Backlog currently at

2154 requests outstanding

31 Mins19 Mins30Mins30 Mins170

Days10

Mins 65 mins 112 Mins 15 Mins

Q Time:Avg = 170 days. Min = 1 daysMax = 656 days

RA Report Writing

Avg = 19 Mins Min = 5 MinsMax = 49 Mins




Potential Root Causes

Survey Report Cycle Time

MaterialsPeople

Methods

Machines

Environment

Time to fill out

Navigation of templates

Infopath vs Lotus Notes

Survey Report Forms

Format of Input

Content required for Branch / Underwriters

Travel Times

TabletsStorage Issues

Battery LifePriortisation

Ease of Use

More use On Site?

Surveyor Experience

Multiple site visits per trip

Age of Requests increasing

Engagement

Incentives Mis-aligned

Career Developement

Training

Incentives

InductionSkill level

Lack of Feedback

Guidance

Workrate expectations

Driving right behaviours

More emphasis on aged requests

Dont use Tablet PC at all?

Improvement Workshop

Survey Report Forms

The Risk Survey report forms have been modified. The new versions capture slightly less info than previously, but require 30% less time to produce.

Visual Controls

Example of map showing

outstanding requests from a 6 week period in the

Auckland Area.

Each Surveyor has a different colour

Visual Controls

Map zoomed in on requests from East Auckland showing multiple requests

allocated to different surveyors. These can now be

allocated to just one surveyor, thus saving travel time

and cost.

Controls – Risk Survey Dashboard

The Dashboard is shared between the Risk Survey Team and Branches to allow better communication of Surveyor work in progress and resource availability

Controls – Results so far

Average time to complete surveys has fallen by 33% in last 4 months (based on sample timings taken in August ’10 vs timing taken in Dec ’10).

The Range has also decreased significantly

736557494133251791

9

8

7

6

5

4

3

2

Observation

Hours

to C

om

ple

te

_X=3.470

UCL=4.883

LCL=2.057

July December

Time to Complete by Month

Back in July 10 the range

(highest minus lowest)

was 4 ½ hours

The range now is at 2 ½

hours

The average

completion time has

fallen from here

to here

risk surveys lean six sigma storybook. so what is a risk survey?

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