Please Use the case study and tools templates to complete the group project morning glory associates powerpoints. please let me know if you have any questions.
eBook_LeanSixSigmaBlackBelt_AI.pdf Project Overview This Project is based on a hypothetical company (Morning Glory Associates, "MGA") that faces many of the same issues that companies are dealing with today. The Project illustrates the entire business improvement effort through every phase of the DMAIC methodology. You will complete challenging exercises (project deliverables) that build on the tools and concepts taught in this course. You will understand what true business improvement is. Morning Glory “MGA” is a Business Insurance company that conducts business throughout the Pennsylvania Commonwealth. During the past 2 years, MGA has fallen from the second business insurance provider to 4th, in the Pennsylvania Commonwealth. The business Insurance industry has continued to grow in Pennsylvania. Poor customer service and process are the primary cause for MGA falling behind its competition. A Lean Six Sigma team has been formed to address their delivery issues. MGA identified that their process required 23 days to process insurance applications as compared to 16 days for the competition. The total process time of 16 days was what business insurance customers consider to be Critical to Quality (CTQ). By not meeting the CTQ of 16 days, MGA estimated that it was losing $105.5 million in lost revenues while incurring an additional 10.5 million in process inefficiencies. The primary goal for the Lean Six Sigma team is for MGA to meet customer expectations for the mortgage application/approval determination process throughout Pennsylvania. 2 | Page 2 | Page Project Scope Area of Focus: Processes in Harrisburg, Pittsburgh, and Philadelphia Includes: Customer, Insurance Agent, Underwriting, Credit Agency, processing of application, and approval/denial of application Accounts Payables and Receivables, re-finance Excludes: processes Start Point: When a customer requests Insurance Stop Point: Loan acceptance or rejection package is received by the customer 2 | Page PROJECT TEAM Team Members Function in the Business Project Role Time Dedicated to Project (Hrs./Week) Jeff Davidson Senior vice President Sponsor 2 Judy Waters Manager continuous Improvement Black Belt 3 Bob Decarten Project Manager Green Belt 25 Janice Pearl Finance Team Member 10-15 Norm Brossen Operations SME Team Member 10-15 Herald Gonzales Processing SME Team Member 10-15 Additional Support As required from other departments PROJECT MILESTONES Milestone Phase Start Date Completion Date Define June 15th In Progress Measure July15th August14th Analyze August 15th September 14th Improve September15th October14th Control October15th November 14th Closure November 15th December 14th Business Insurance Process Flow The MGA business insurance process starts when a customer contacts a local Insurance Agent (IA) to request insurance coverage for their business. The IAs are located across the state. The IA emails the customer a business insurance application to be completed and emailed back to the IA. The IA forwards the application to their Regional Office Manager (ROM). An Application Processor (AP) is assigned to the application. The AP reviews the application. The AP contacts the IA to request additional information (clarity on business, areas of commitment, potential liability areas, etc.). The IA contacts the customer to request further information and clarity. The customer gathers the additional information and emails it to the IA. The IA emails the information to the AP. With the additional information, the AP reviews the application and additional information to ensure that it is complete. If there is missing or incorrect information, the AP contacts the IA to make the necessary corrections. If the information is correct, the AP forwards the information to an Underwriting Officer (UO). The UO reviews the customer information to evaluate risks, and to determine pricing. The UO sends information to the ROM to determine insurance acceptance or not. ROM forwards the final determination to the AP. If the application is accepted, the AP creates an insurance policy. If the application is rejected, the AP creates a rejection letter. When this is complete, the AP forwards the final determination package to the Regional Officer for review and approval. The AP then sends the determination package to the IA and schedules a call with the IA to review the final determination package. The IA reviews the final determination package. The IA sends the final determination package to the customer and schedules call. When the customer reviews the final determination package, signs it, and sends payment. At this point the MGA Business Insurance Policy process is complete. Primary People and Departments Involved in the Application Process · Customer · Insurance Agent (IA) Regional Office Manager (ROM) Application Processor (AP) · Underwriting Officer (UO) Quick Win Opportunity Easy To Implement Reversible Fast To Implement Within Team’s Control Cheap To Implement Name Function / Organization Name Function / Organization Tammy Johnson GM Pittsburgh Office Susan Beal Regulation and Compliance Officer Joseph Petrini GM Philadelphia Office Laura Jones CFO Thomas Kerns GM Harrisburg Office LSS Team Members Various Bus. Insurance Customers NA Mark Canter VP Sales Karen Milnes Underwriting Manager Lu Suni Agents Manager, Pittsburgh Maria Bandleris Agents Manager, Harrisburg Mike Brown Agents Manager, Philadelphia Segment Customer Issue Customer Need CTQ External It takes too long to process loans Reduce loan processing cycle time 15-day loan processing cycle time External There are too many errors on the final determination packages External It is exceedingly difficult to reach anyone at SI Internal No clear roles and responsibilities to who owns the loan process Internal Too much time is spent reviewing the application Translate the following VOC into CTQ’s X/Y Matrix: Input, Process, And Output Measures This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Copyright © 2009 Acuity Institute LLC. All rights reserved.1 2 | Page 2 | Page Measure Operational Definitions Display Total Loan Processing Cycle Time The total time in days from when a customer submits the application to when the is mailed by location; Time stamp calculation in database Histogram, Run Chart, Control Chart # Of Final Determination Packages with Errors % Of Defective Incoming Applications Application Cycle Time Per Department Segment Process Improvements Previous Average Processing time (days) New Process Time (days) Process 1-Connect with IA to request mortgage insurance 1.4 Process 2-Email Mortgage Insurance application 1.2 Process 3- Complete Application 1.2 Process 4-Send Application to IA 1.2 Process 5- Forward Application to ROM 3.9 Process 6- Forward Application to AP 3.4 Process 7-Review Application 2.5 Process 8-contact Customer to request additional information 3.8 Process 10-Gathers additional information and sends to AP 1.3 Process 11- AP Reviews File 1.4 Process 12-Is the application complete? If not contacts AP 2.4 Process 13- UO Review risks and determines pricing 2.5 Process 14- Sends the application to the ROM for determination 3.7 Process 15-Is the application complete? 2.4 Process 16-Is the application Rejected or Accepted? Creates Acceptance 2.6 Process 18-Create Insurance policy 1.2 Process 19- ROM Review and approve the decision 2 Process 20-Sends determination package to IA and schedules a call with IA to review determination 1.4 Process 21-Is the determination accepted? 1.2 Process 22-Signs and send payment 1.1 This eBook is for personal use only. Please DO NOT use this eBook for presentations and training facilitation purposes. Copyright © 2009 Acuity Institute LLC. All rights reserved. 2 | Page 2 | Page As-IsProcessMapProjectName:BusinessInsuranceProcessBusinessInsurance CustomerInsurance Agent(IA)RegionalOffice Manager(ROM)Application Processor(AP)Underwriting Officer(UO)MailInsurance ApplicationTocustomerComplete ApplicationForwards Applicationto ROMMail Application ToIAForwards Applicationto APReviewsfileRequests additional information FromCust.Gathers additional informationSend Information ToAPReviewsfileIs Information Comp.12Con1tactsIATo requestInsurance31094156781112NoGoto Step13 As-Is Process Map Project Name: Business Insurance Process Business Insurance Customer Insurance Agent (IA) Regional Office Manager(ROM) Application Processor (AP) Underwriting Officer(UO) Mail Insurance Application To customer Complete Application Forwards Application to ROM Mail Application To IA Forwards Application to AP Reviews file Requests additional information From Cust. Gathers additional information Send Information To AP Reviews file Is Information Comp. 1 2 Con1tacts IA To request Insurance 3 10 9 4 1 5 6 7 8 11 12 No Go to Step 13 Morning Glory Associates, "MGA Insurance Company Prof. Conlon June 5, 2023 Morning Glory Associates, "MGA Insurance Company Prof. Conlon June 5, 2023 Team 1 Marty Céspedes Maria Godoy Helene Ohouo Krishna Saxena Tapshak Augustine 1 Introduction Morning Glory Associates ("MGA"), a fictional company, has many of the same problems as actual ones. The Project shows each DMAIC business development procedure. Project deliverables will be easier with this training. Business will grow. Morning Glory "MGA" in Pennsylvania insures businesses. MGA slipped from second to fourth in Pennsylvania business insurance in two years. Pennsylvania insurance grew. MGA lags in client service and technique. Lean Six Sigma fixes delivery concerns. MGA took 23 days to complete insurance applications, while competitors took 16. Business insurance consumers termed the 16-day process Critical to Quality (CTQ). MGA lost $105.5 million in income and $10.5 million in process inefficiency by missing the 16-day CTQ. 2 Project Charter 3 4 5 6 Flow Chart Measure Phase They offer a place to start when taking process measurements. Data collection gather information about the time it takes to apply for and be approved for insurance. Establish a baseline for process performance using the data. Measurement Standards: Total Loan Processing Cycle Time (a): The number of days it takes from the time an application is submitted until the final determination packet is mailed. How many final determination packets included errors. The quantity of received incomplete applications. Application Processing Time by Department Application cycle process timings split by departments. SIPOC FMEA Cpk – Average App Cycle Time RESULTS: Based on the results, the capability of the process needs improvement to enhance its capability and produce products that consistently meet the required specifications. That is why it will be recommended to do a root cause investigation, and process optimization may be necessary to achieve this improvement. Cpk – Loan Time Processing Summary Report for Total Loan Time Harrisburg Summary Report for Total Loan Time Philly Summary Report for Total Loan Time Pittsburg Run Chart of Total loan Time Harrisburg Run Chart of Total Loan Time Philly Run Chart of Total Loan Time Pittsburg Fitted Line: Philadelphia Total Cycle Time versus Philadelphia App Cycle Time Two-Sample T-Test and CI: Accuracy, Location Project Takeaways/Lessons Learned Importance of Customer satisfaction and expectations Importance of identifying the CTQ Proper process documentation Communication improvement Cross-training and collaboration between departments Understand the financial impact due to inefficiencies Determination of roles and responsibilities DMAIC_Roadmap Lean Six Sigma DMAIC Roadmap PurposeKey ToolsKey Outputs DefineTo establish a quantified problem statement, objective and business case that will become the foundation to your Six Sigma project. Conduct stakeholder analysis, select team members and kick-off your project.Primary MetricProcess MapProject CharterProject Plan* Process Map * Gather VOC * Translate VOC to CTQ's * QFD/HOQ * COPQ * Primary & Secondary Metrics * Establish Project Charter * Stakeholder Analysis * Team Selection * Project Plan MeasureRefine your understanding of the process. Assess process capability relative to customer specifications. Validate measurement systems. Brainstorm potential x's.C&ESIPOCFMEACpk* Early Y=f(x) Hypothesis * Detailed Process Map * SIPOC * Cause & Effect Diagram * Cause & Effect Matrix * FMEA * Basic Statistics * Normality Test * Capability Analysis * Gage R&R AnalyzeConduct data collection and planned studies in order to eliminate non-critical x's and validate critical x's. Establish a stronger and quantified Y=f(x) equation.Normality TestANOVA2 Sample t-testEqual Variances* Narrowed Y=f(x) * 1 & 2 Sample t-tests * 1 & 2 Proportions tests * Equal variance tests * Normality tests * ANOVA * Moods Median * Mann Whitney * Paired t-test * Chi-Squared test ImproveDesign, test and implement your new process or product under live operating conditions. Pilot solutions if feasible before broadly deploying expensive improvements or products. Pugh MatrixLinear RegressionBinary Logistic RegressionDOE* Refined Y=f(x) * Pugh Matrix * Correlation * Simple Linear Regression * Multiple Linear Regression * Binary Logistic Regression * Full Factorial DOE * Fractional Factorial DOE ControlPlan, communicate, train and implement your product or process solutions. Ensure control mechanisms are established. Use Poke Yoke, visual controls, SOP's and SPC wherever possible.Control PlanSOP'sCommunication PlanSPC* Control Plan * Training Plan * Refined FMEA * Communication Plan * Standard Operating Procedures * Five-S Audit * Poke Yoke * Visual Controls * Statistical Process Control DMAIC_Project_Checklist D.M.A.I.C Project Checklist DEFINEIMPROVE 2Projecct Charter2Potential Solutions Developed 2Business Case (why is this project important)2Potential Solutions Prioritized 3Problem Statement & Objective2Solution Selected 2Baseline Data (Primary Metric "Y")2Improvement Pilot/Test Plan 2Target2Improvement Pilot/Test Execution 2COPQ Estimate2Improvement Verified 2Project Team2New Process Capability 2Project Scope2Updated Process Map 2Project Timeline2Solution Implementation Plan 2Project Constraints/Dependencies2Primary Metric Updated 2High Level Process Map2COPQ Revision 2Customer Requirements Identified2Improve Phase Report 2Define Phase Report MEASURECONTROL 2Detailed Process Map2Full Solution Implementation 2SIPOC2Standard Operating Procedures Developed 3Data Collection Plan (Potential X's)2Communication Plan 2Measurement Systems Analysis (Primary Y)2Training Plan 2Process Capability Analysis2Audit Plan 2List of Possible X's2Control Charts 2Prioritized List of X's to be Analyzed2Control Plan 2Primary Metric Updated2Primary Metric Updated 2COPQ Revision2COPQ Revision 2Measure Phase Report2Full Project Report ANALYZE 2Sources of Variation Identified 2Potential X's