Professional Documents
Culture Documents
2Q '89
$
Gross Premiums
8,218
Comm. + Exp.
933
Net Rev.
7,285
%
100.0%
11.4%
88.6%
2Q '91
$
8,901
1,126
7,775
%
100.0%
12.7%
87.3%
Variances
$
%
683
193
1.3%
490
-1.3%
Losses
Gross Profit
4,273
3,012
52.0%
36.7%
6,453
1,322
72.5%
14.9%
2,180
(1,690)
20.5%
-21.8%
Operating Expenses
Operating Profit
1,244
1,768
15.1%
21.5%
1,443
(121)
16.2%
-1.4%
199
(1,889)
1.1%
-22.9%
18.5%
1.4%
80.1%
2,172
133
6598
24.4%
1.5%
74.1%
1,523
113
6582
649
20
16
5.9%
0.1%
-6.0%
%
100%
25%
75%
Old
$
6,205
434
5,771
%
100%
7%
93%
RUN
RERUN
New
$
6,724
1,681
5,043
Dist.
68.5
28.0
UW
43.6
18.7
Rating Writing
75.5
71.0
75.5
50.1
Arrival Rates
('91 6 months)
RUNS
no. request
%
#days
rate (#/day)
350
7.5%
120
2.92
rate(#/min)
0.00648
RAPS convert.
RAPS*
RAINS
RERUNS to RUNS
1798
451
2081
274
38.4%
9.6%
44.5%
120
120
120
120
14.98
3.76
17.34
2.28
0.03330
0.00835
0.03854
0.00507
RUNS
RAPS
RAINS
RERUNS
68.5
50.0
43.5
28.0
43.6
38.0
22.6
18.7
75.5
64.7
65.5
75.5
71.0
na
54.0
50.1
Utilizations
Distribution
(4 clerks)
Underwriting Teams
Territory 1
no. request
rate (#/min)
Utilization
Territory 2
no. request
rate (#/min)
Utilization
Territory 3
no. request
rate (#/min)
Utilization
Rating
(8 clerks)
Policy Writing*
(5 writers)
RUNS
11.1%
RAPS
41.6%
RAINS RERUNS
9.1%
27.0%
RUNS
RAPS
RAINS
TOTAL
88.8%
RERUNS TOTAL
162
0.0030
13.1%
761
0.0141
53.6%
196
0.0036
8.2%
636
0.0118
22.0%
96.9%
100
0.0019
8.1%
513
0.0095
36.1%
125
0.0023
5.2%
840
0.0156
29.1%
78.5%
88
0.0016
7.1%
524
0.0097
36.9%
130
0.0024
5.4%
605
0.0112
21.0%
70.4%
6.1%
26.9%
6.8%
36.4%
TOTAL
76.3%
RAPS conv.
RUNS to RUNS
9.2%
7.2%
* The 274 RAPS converted to RUNS used for Policy Writing utilization.
NOTES:
1) Based on Exhibit 7, '91 number of requests
2) Assumes 4 wks/month, 5 days/week, 7.5 hrs/day operation
3) If you assumed the same 28.4 min. weighted avg. processing time in each territory,
then the utilizations for territory 1,2 and 3 are (resp.) 92.3%, 83.0% and 70.8%.
The above method is more accurate since it accounts for variations in mix across
territories.
Observations
40
Wq
30
20
Waiting time is
lower in pooled
system at any
given utilization.
s=1
s=2
s=3
Pooled
territories
10
0
0.80
0.85
0.90
Utilization ( )
0.95
1.00
Double counting
Example:
5 jobs
3 jobs
RERUNS
RERUNS
RERUNS
Releasing RERUNS 4
days prior to due date
is more than enough to
guarantee 100% ontime!