Case Rate Improvement and Solution

Providing Workshop

Six Sigma transforming life

When a problem comes to you, study it until you are completely
knowledgeable. Then find that weak spot, break the problem
apart, and the rest will be easy.
Good Luck…
AGENDA

Module Content Time Duration Time

Context Setting ,Where we are. 90 Mins 9.30 AM - 11.00AM

Tea Break 15 Mins 11.00- 11.15

Improvement Approach.
To be Changed
What is Problem solving and Process
60 Mins 11.15AM-12.15PM

Define a problem Area/ Project. (

Voice of customer ,Scope 60 Mins 12.15PM-1.15PM
,Charter,DPMO,Process Analysis )

Lunch Break 30 Mins 1.15PM - 1.45PM

Identifying the factors Leading to Problem

60 Mins 1.45PM-2.45PM
( Cause and Effect ,Graphs ,Pareto Diagram)

Identifying critical factors Leading to Problem

45 Mins 2.45PM-3.30PM
( 5 Why Analysis,Control Impact Matrix))

Creating Solution 45 mins 3.30PM-4.15PM

Tea Break 15 Mins 4.15PM-4.30PM

Sustain Improvement and Closure (
60 Mins 4.30PM-5.30PM
FMEA)
Way Forward 60 Mins 5.30PM-6.30PM
Why We Need to Do It :
Total Agents AFYP/ Agent ('000)
2,676 3,013
7,120

29,909 31,175 22,905

Current Class Current Class
1st Prior 1st Prior
9,757
2nd Prior 2nd Prior
42,554 9,157
3rd Prior 17,223 3rd Prior
Established Class Established Class

Lower per agent contribution by Prior 1 and Prior 2

Agents .
WHERE WE ARE..
ActiveAgents
100% 88 76 41 135
169 110 282 60 46 49
91 99 91 134
183 205 175
90%
255
80%
1656
883 714
1392 1282
70% 1703

60% Established Class

3rdPrior
50%
2ndPrior
40% 1st Prior

30% 3164 Current Class

2475 2786 1673 1303
2307
20%

10%

0%
North1 North2 West 1 West 2 East South

Only 36% of total Active Agents are from Prior 1 and Prior 2.
WHERE WE ARE..

CaseActive Ratio
100%

90% 22% 26% 28% 24%

32% 30%

80%
16% 20%
70% 23% 21% 17%
24%
60% 12% 13% Established Class
14%
14% 15%
15% 3rdPrior
50% 16% 18% 2ndPrior
19% 17% 20%
40% 18% 1st Prior
Current Class
30%

20% 47% 50%

44% 45% 46%
42%
10%

0%
North1 North2 West 1 West 2 East South

Low “Case Activity ratio” across Prior 1 and Prior 2 .

 A Conversation - Characters
• RM
• Office Head
• Training Head
• Quality Manager
 A Conversation
• RM - So how are we doing?
• Office Head - Business was better compared to last month.
We are now on 79% of our YTD Plan
• RM – That’s great job. What have you done?
• Office Head - We had few big policies that helped improve
the performance. However, Activisation is a concern.
Activisation is at 55%.
• RM - What is the issue behind this low Activisation?
• Office Head - Mostly the agents in first prior are getting
inactive.
• Training Head - I think, agents are not getting adequate
handholding from SM and ASMs
• RM - OK, that is one of the concern areas and we need to
dig deeper into the issue.
 A Conversation (Contd.)
• SM - Boss, as a member of a Six Sigma Project when Quality Manager & I spoke to a few 1st Prior
Agents. They said that did not earn enough, hence they are not so positive about agency as a
career.
• RM - Do you have some data around this?
• Quality Manager - Sir, I can share with you the details analytics around this.
• RM - Khusboo, please make a note of this and book my calendar for a meeting with the QL.
• Training Head - I also have experienced that agents with less than 3 GIDs are more likely to get
inactive.
• RM – Also, when the agent’s natural market dies in 3 – 6 months, he is not getting adequate
mentoring and support from SMs and ASMs to do business.
• SM - Boss, It is my observation that too many young agent advisors are joining our company and
their aspiration in life are not aligned with the current MNYL Job.
• Office Head - I will recommend looking into number of young agents we have in the system as I
believe we need to up-skill them.
• RM - I think, we have had a good discussion on this, before we meet in the next OLT, we need to
finalize an action plan to improve this. Khusboo, please circulate the MOMs and keep me updated.
 Exercise
• What is the Branch Head
complaining about?
• Why is he complaining?
• What is his requirement?
• Improving what parameter
will help solving his
problem?

Voice of Business/ Internal

Customer
 VOC – Customer Issues – CCR – CTQ

Voice of Business Business Issues Critical Business Critical for Processes /Quality
Requirement

Eg. Busines is dipping month Case size has dipped in Minimum case size should beMTD Case Size (MTD AFYP in
on month last six month 20,000 office/MTD Total policy paid in
office)

Remark
1. Voice of business to be prioritized to those which are related to project objective
The Approach

Practical
Problem

Statistical
Problem

Statistical
Solution

Practical
Solution
The Approach

Low Activisation Practical

Problem

Low 1st /2nd prior

Activization Statistical
Problem

Improve re-assigned
agent productivity Statistical
by X % Solution

Exclusive
Reassignment Practical
Manager Solution
Methodology

D Identify and state the practical problem

Define

Validate the practical problem by collecting data

M
Measure
Convert the practical problem to a statistical one,
A define statistical goal and identify potential statistical
Analyze solution

I Confirm and test the statistical solution

Improve

C Convert the statistical solution to a practical solution

Control
 Team Charter
Project Title
Business Case Opportunity Statement
Pain

Impact of pain in Rs. (or soft)

Goal statement Project scope

Metric Current level Goal / Target Target date Process under improvement:

Starts with

Ends with
Project plan Team Selection
Phase Start End Remarks
Define Champion:
Measure Project Coach:
Analyze Project Leader:
Improve Member
Control Member
 Team Charter
Project Title: To improve the case rate of the office
Business Case Opportunity Statement
58% of Zone agents falls in Prior 1 and Prior 2 with respective YTD Case rate as on Dec 2009 is A. Which will
case activity ratio of 24 % and 13 % which is very well below the lead us with business of Rs Z. By Improving
planned figure. This project is to arrest declining case activity Case rate by B% for agent will enhance the
ratio and enhance it to achieve 2009 Business Plan business by Rs Z +.

Impact of pain in Rs. (or soft)

Goal statement Project scope

Metric Current level Goal / Target Target date Process under improvement: Agent development
and sales
Case A 1.75 30th May Starts with Agent is contracted
Rate(MTD) Ends with Agent is terminated
Project plan Team Selection
Phase Start End Remarks Sponsor Regional Manager
Define 6thFeb 10th Feb Sponsor: RM/ MPML
Measure 11h Feb 30th March Champion: ZTH/RSDM
Analyze 1st Apr 30th April Project Coach: Q& BE Manager
Improve 1st May 30th May Project Leader: Training Manager
Control 1st June 30th June Member : TM/AP
Why Six Sigma( DMAIC) – It is Data Driven

Y = f(X)

• Y • X1 . . . Xn
• Dependent • Independent
• Output • Input-Process
• Effect • Cause
• Symptom • Problem
• Monitor • Control

The focus of Six sigma is to identify and control Xs

Identify Potential Causes–
Brainstorming
Machine Material Environment

Lack of Office Ambience

Not enough resources
Information AA bonding with Office
Support Not enough R&R
Lack data support

Low Productivity
of Prior-1 & Prior-
2 Agents
SM Attrition
Relation with SM Lack of Training
Conflicting Goals
Agent Skill & Knowledge
Agents Not Personality Fit
Reassignment of Agent
Agent Attrition
People Method

To be done as an exercise in the session

Prioritize Potential Causes – C–E
Matrix Input/ Process indicators Output Indicators

SM Attrition 9

Conflicting Goals 3

Agents Not Personality Fit 3

Agent Attrition 9

Relation with SM 9

Lack of Training 9

Agent Skill & Knowledge 9

Reassignment of Agent 3

Lack data support 1

Not enough R&R 3

Office Ambience 9

AA bonding with Office 3

Not enough resources 1

Can be done once Cause & Effect completed. To be done as an exercise

Scale: 0=None, 1=Low, 3=Moderate, 9=Strong
5 Why Investigative
Process
Define Problem
Root Cause Corrective Actions Date
Why did we
Why? have the
problem?
A
Agent foot fall
in GO meet
Why? No exitement
Why the Why? No value add/no
Problem was innovation
not detected? Why?
Lack of A
preparation
Lack of
Why?
Accountability
Why? Why?
B
Why?
Why did the Why? B
Process Fail
Why?

Why?
Why?

Why? C

Why? C
Why?
Why?

To be done as an exercise
Control Impact Matrix
P ra c tic a l/
F e a s i b l We i t h i n T e a m s Im p le m e n t
S r N o R o o t C a u Ss eo l u t i o n ( H / M / L )C o n t r o l ( HI m/ Mp /aLc) t ( H / M( Y/ L/ )N ) R e s p o n s iTb gi lt i tDy a t
H a ve p rio rw is e
A c t i v i t i s a tai oc nt i vi sz a t i o n
1 lo w week H H H Y es M a y a n k G 1a5n- dA hu i g -

1 s t P r i o r G ID t o
b e c a lle d . T M s
L o w a t t e nhdeal pn ct eo b e t a k e n
2 i n G ID t o c a l l A gHe n t s h H Y es N e e r a j S i n g1 0h - J u l - 0
N o R n R sHp Oe c liefi vc e l
fo r 1 s t p r ico or n t e s t fo r 1 s t
3 a g e n t s p r i o r a g e nH t s L H No
G O s i z z l e r fo r
1 s t p r i o r aH g e n t s H M Y es A k h i l P a r a s1 0a r- J u l - 0
 Define Data Collection Plan
Performance Measure (Y) Operational Definition Data Source and Sample Who will When will Data be How will Data be Other data that should be
Location Size collect the Data collected Collected collected at the same time

Case Activity Ratio of Prior-1 Proportion of AA in Prior-1 & Prior-2 MIS Pack-1 from 500 Project Leader July-Aug’09 Through Exl at TBD
& Prior-2 doing a business of a case per month Distribution MIS at Office
HO

Performance Measure (Y) Operational Definition Data Source and Sample Who will When will Data be How will Data be Other data that should be
Location Size collect the Data collected Collected collected at the same time

SM Attrition SM Resigned / terminated from C0 500 Project Leader July-Aug’09 Through Exl TBD

Conflicting Goals Agents doing multiple jobs 500 Project Leader July-Aug’09 Through Exl TBD

Agents Not Personality 500 Project Leader July-Aug’09 Through Exl TBD
Fit

Agent Attrition 500 Project Leader July-Aug’09 Through Exl TBD

Relation with SM 500 Project Leader July-Aug’09 Through Exl TBD

Lack of Training 500 Project Leader July-Aug’09 Through Exl TBD

Agent Skill & Knowledge 500 Project Leader July-Aug’09 Through Exl TBD

Reassignment of Agent 500 Project Leader July-Aug’09 Through Exl TBD

Lack data support 500 Project Leader July-Aug’09 Through Exl TBD

Not enough R&R 500 Project Leader July-Aug’09 Through Exl TBD

Office Ambience 500 Project Leader July-Aug’09 Through Exl TBD

AA bonding with Office 500 Project Leader July-Aug’09 Through Exl TBD

Not enough resources 500 Project Leader July-Aug’09 Through Exl TBD
Understanding Critical Areas - Pareto
Diagram
Pareto Diagram is made to quickly identify critical areas that
deserve
immediate attention.

Grouping the problem areas into two categories, they are

labeled as the
vital few and the trivial many.

Pareto Diagram lends support to the 80/20 rule, which states

that 80%
Of
Canthe problems
be done once Data(nonconformities or To
Collection completed. defects)
be are Pareto
created
and Fish by
20% of exercise
the
bone analysis
done as an with the help of attached Exl.
causes.
Graphs
Graphs are a tool for organization, summarization, and
statistical display
to aid in the analysis of data.

Some examples of various graphs are:

Line graph (Use to Identify Trends over Time)

Bar Graphs (Simple and compound)

Pie Charts (Use to show Share / Proportion)

Can be done with real data. To be done as an exercise
with the help of attached Exl.
Example of Graphs
T r e n d in C a s e A c t iv it y R a t io in Ea s t
S h a r e o f P r io r - 1 in T o t a l A g e n c y

45%
100%
40%
35% 80%
30%
60%
25%
20% 40%
15%
20%
10%
5% 0%
0% A B B N A1 K O L A1 K O L 2A A S N 1A R A I1A R A N A1 P T N A1 B R M 1
A B B N 1 A K O L 1 A K O L 2 A A S N 1 A R A I1 A R A N 1 A PT N 1 A B R M 1
Jan Feb M ar A pr Ja n F e b M a r A p r
Time Series Chart
What are Time Series Chart?
Time Plot of Number of Web Site Hits
Time Series Chart showing
Junethe
1-30 number of calls answered daily

140

130
Number of calls

120

110

100

90

80

70
0 10 20 30

Days

A time series chart is a graph with time plotted on the horizontal axis and a
measurement of the process results plotted on the vertical axis.
Time Series Chart Features
Time Series Chart showing the number of calls answered daily

Vertical axis shows the

numerical value or count
Data points plotted
140 in time order
130
Number of Calls

120

110

100

90 Points are connected by a line

80
to aid in visual interpretation

70
0 10 20 30
Days

Horizontal axis reflects passage of time

Usage of Time Series
Chart
 Provide a graphical picture of process performance

 Help in identifying any shifts and trends in the process

 Help in identifying possible causes of changes within a process

 Help in improving process performance

Microsoft Excel
Worksheet
 Example of Time Series
Chart Acquisition Daily Volume
Daily Volumes
12000 Weekday
12000
Friday
Monday
10000
10000 Thursday

Volume (Numbers)
Tuesday
Volume (Number)

8000 8000 Wednesday

6000 6000

4000 _ 4000
X=3201
2000 2000

0 0

1-Mar-06

8-Mar-06

16-Mar-06

24-Mar-06

3-Apr-06

11-Apr-06

21-Apr-06

1-May-06

9-May-06

17-May-06

25-May-06
1-Mar-06

8-Mar-06

16-Mar-06

24-Mar-06

3-Apr-06

11-Apr-06

21-Apr-06

1-May-06

9-May-06

17-May-06

25-May-06

Date Date

Control Chart Weekday Volume Distribution

 Daily Volumes for Acquisition has been very erratic  There is no consistent weekday trend available
 March and April suggest increase in volumes  March shows Tuesday as the lowest volume days;
towards the second half of the month; however, however April and May suggest Friday as the lowest
May has reverse trend volume days
 Defect & Defective
Defect :- Anything that results in customer dissatisfaction.
Anything that results in a Nonconformance Eg. Printing on Marker
Pen, Tip of a Marker Pen, Cap of Marker Pen, etc

Defective :- Anything that has a defect is DEFECTIVE. A defective

can have one or many defects. Eg. A Marker Pen

Opportunity :- No of different kind of defect in a single unit which

can make defective product Eg Tip of marker is broken, colour
coding mistake on pen, Broken cap
Unit :- Anything that can be defective is a UNIT. Eg. A Marker
Pen
Calculating Sigma Capability – An
Example
Let take an example of a Agent
Productivity.
What are the things which make Prior Agent Productive??

Agent Skill & Knowledge Relation with SM

Training

Office Ambience
Agent Attrition
SM Attrition
Conflicting Goals of AA

Service AA Personality

Proper Reassignment
 Calculating Sigma Capability – An
Example
What happens when the SM Attrition is High & Agents are not Properly
Reassigned??

Out of 10 parameters
• Defectsonly
= 2 8 get fulfilled
• Opportunities = 10
•
10 Opportunities & 2 Defects Unit = 1
• D/(U*O)= 0.2
• DPMO =
Unit: The event/transaction produced or processed
0.2*1000000
Defect: Any event/transaction that does not meet the Customer requirement
• DPMO = 200000
Opportunity: Any inputs to• event/transaction
Only 2.34 Sigma that can be measured that
provides a chance of not meeting a Customer requirement
Defective: A unit with one or more defects
Specification Limits: Tolerance Limit beyond which customer would be
dissatisfied - VOC
 Six Sigma Measurement
Total Total No of Opportunities: Opportunity per Unit X Total
Opportu Number of Units.
nities Ex) A Marker Pens has 4 Opportunities – Print, Cap, Tip
and Refill
There are 1000 Marker Pens
Total No. of Opportunities = 4 X 1000 = 4,000
DPO Defects Per Opportunity : Total Number of defects divided by
total number of opportunities
Ex) There are 200 Defects found in 1000 Marker Pens
Defects per Opportunity = 200 / (4 X 1000) = 0.05
DPMO
Defect Per Million Opportunities : Value of DPO x 1 Million
(10 Lakhs)
Changing DPO to million unit because 6σ uses PPM(Part
Per Million)
Ex) DPMO = 0.05 DPO x 1,000,000 = 50,000
 Six Sigma Measurement - Example
Area : Insurance
Customer Quote ‘My Agents are not writing enough cases'

CTQ Name : Paid Cs per Agent (Case Rate)

CTQ Measure Paid Cs

Agent with less than 1 Paid Cs per Month

Defect
Agent
Unit
1 per Agent
Opportunity
5000 Agents
No. of Units
50 Agents
Defects
Sigma: 3.83
 Six Sigma Measurement - Example
Area: Insurance
Customer Quote: ‘My last yrs Agents are not contributing enough’
Case rate (No of apps logged in/ Agent Man month
CTQ Name :
Every agent with less than 1.75 case rate
CTQ Measure :
Total no of agent with more then 1.75 case rate
Defect :

Unit : Total no of agents

Opportunity : Chances of agent to meet criteria yes or No
Defects : 1000
No. of Units : 5,000
Opportunities : 5,000 X 1 Sigma: 2.34