Deutsche Allgemeinversicherung - Case Study Example

It finds out the accuracy rate of the company’s performance while measuring the quality of its processes (Doty, 1996). It helps the managers to understand the level of productivity in each department and operate those processes at full potential. It is beneficial to DAV because it will identify the quality of the forms filled by the customers and inserted by an employee. It would then help the company in monitoring and controlling the processes (Harvard Business School, 2009). Challenges and limitations in applying SPC (Services to manufacturing) More often the use of the statistical process control tool is used in the manufacturing industry, but its use in the service industry can be rather challenging because of the intangible product (Trip, Does, & Roes, 1999).

Humans are the only source that could be referred to while using offering services. So, measuring the people is the biggest challenge in the SPC because the company has to find out the errors that an employee is committing instead of a machine which is used in the manufacturing industry. It makes it impossible for companies to consider the factors while measuring their performance. . There was a conflict in judging the quality of the form as right or wrong. Senior managers suggested that forms should not be considered as wrong if critical information is missing. 2. Better teams do more sampling: There was an issue with some groups that had to increase the sample size which was becoming a burden for some other groups.

One group claimed that they had the best accuracy rate of 98% but still they had to increase the sample size (Harvard Business School, 1997). 3. Measuring Lawyers: The lawyers that were working in the legal department had problems regarding measuring the legal work of the customer form. They could not decide between a good form and a bad one even while measuring on the scale (Harvard Business School, 1997). 4. Automatic Charting: There was an issue that the group wanted to measure the quality automatically and should develop and IT system that would monitor these forms.

They claimed that this method would save them a lot of time and will make the company productive (Harvard Business School, 1997). 5. On the Prowl: The associates were beginning to feel hesitant in providing the accurate results to the senior managers because of their reactions when they find out about the low accuracy rate. They were thinking to work on measuring another type of work which would yield better results to make their senior managers happy. Why problems are occurring and how they can be resolved The solutions and recommendations for the problems are underlined below: Better Teams do more sampling As the quality improvement was being tested in 15 different departments of the company each group from those departments showed interest.

But as the quality improvement program continued, it created a lack of interest. So the company should try to