Class Insurance 4 U - Modern Operations Management...

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1 Modern Operations Management Inventory (Complex Flow Structures) Assembly Line/Continuous Flow Job Shop/Batch Process Types One employee is assigned to cover each of the following tasks: information gathering, underwriting, rating and posting. Insurance 4 U Information Gathering (I) Posting (P) Underwriting (U) Rating (R)
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2 Insurance 4 U Products and Processes Endorsement I R U P Renewal I R U P Quote I R U P New Policy I R U P Each time product is processed by a resource, the processing time Is one day, so each product requires a total of 4 days of processing. ProductCards Insurance 4 U Operation Scheduler Releases cards for processing . Flow Monitor Records TAT when a card is completed. I R U P
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3 The Game: Each team has to process a total of 24 cards: 6 endorsements, 6 renewals, 6 new policies and 6 quotes. At the beginning of the game, all 24 of the cards are held by the scheduler. The GOAL is to is gets all 24 cards out of the job shop as fast as possible (i.e., minimizes the makespan of the 24 cards). During the first round, the scheduler releases a card into the system at the rate of one card per day. In the second round, the scheduler delays the release of cards into the system. Your team needs to decide: The order in which the scheduler releases cards into the system (i.e., which product will be release on day 1, which product on day 2, day 3, …) Insurance 4 U – Round 1 0 1 2 3 4 5 6 7 8 9 10 11 12 0 1 2 3 4 5 6 7 8 9 101112131415161718192021222324252627282930313233343536 Manufacturing Lead Time (MLT) # of cards/jobs Static Picture of Turnaround Times (High Inventory) If on the 25 th day a new policy were released into the system, what turnaround time would you predict? Turnaround Time (TAT) Dynamic Picture of Turnaround Times (High Inventory)
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4 What was happening to the TATs overtime? Why? Where was the bottleneck? How long did it take to process all 24 cards (i.e., what was the makespan)? I U R P Endorsement New Policy Renewal Quote Total days Resource Total # of days of processing required at each desk to process 6 units of each product.
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