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Poor Quality ….

Six Sigma – iSixSigma Forums Old Forums General Poor Quality ….

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  • #51585

    Anonymous
    Guest

    I regularly hear stories of how insurance companies short change their clients. What a way to ‘kill’ the industry?As customers, how can we determine the Quality of insurance companies? Clearly, it has nothing to do with the lowest quote.

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    #179174

    Kluttz
    Member

    It certainly may be the lowest quote.  If we follow Crosby’s definition of quality as profitably giving the customer what they want when they want it, then many customers are simply just going to want the lowest quote – especially in the cases of minimum state requirements.  There are entire segments of the auto insurance industry devoted to this market where the only essential customer requirement is lowest price.  In this case, LSS can be invaluable in minimizing cost.
    As far as “killing” the industry goes, I just don’t see it.  Insurance companies (just like every other company on the planet) try to balance costs and services.  Quality can only be defined by VOC and, as we all know, customers aren’t always rationale with what they expect for what they pay. 
     

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    #179179

    Anonymous
    Guest

    Well I hope your house doesn’t burn down in the New Year, you don’t have to move into your parents house, and then when you try to make a claim the insurance company tries to wriggle out of it :-)This happened to a lady who works in our corner shop!By the way, most people want it All, Now and for Free, which says something about the definition of quality based upon VOC. (n fact, I can cite a case where a joint venture used this approach to develop a scanner and they only sold two!!!!)Best wishes for the New Year!

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    #179181

    anon
    Participant
    #179183

    Kluttz
    Member

    Ahh, but you missed the third part of the quality definition – PROFITABLY providing what the customer wants and when they want it.  It doesn;t matter what the customer wants if it can’t be delivered profitably.  Thats why its so important to manage cost structure.  So your scanner analogy is moot.
    Look, I don’t know the specifics behind your co-worker’s situation, but I certainly wouldn’t resort to process management via anecdote.  The beauty of Lean Six Sigma is that its data-driven rather than based on fiend-of-a-friend stories

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    #179184

    MrMHead
    Participant

    I, unfortunately, had two occasions this past year to exercise my insuance co’s claim dept. (Homeowners)
    Service:   Initial call, assesment and payment was great – quicker than I had expected, and the disbursment covered what was listed.  However, making a claim addendum (more things found to fix from same incident) took longer than expected – Their excuse was a high volume of claims due to the weather, hurricanes, etc over the summer.  Since I was extremely pleased with the initial, the follow up was acceptable.  This was the case for both claims.
    Cost:  As the economy continued to tumble, looking cut costs, Insurance was one place to look.  Long story short – The ins rep was able to “find” more discounts so I didn’t have to go elsewhere –  So why weren’t these discounts identified to begin with and applied in the past!!?!?
    So “Quality” with respect to cost improved – after an initial decline when you realize you could have been saving more for longer.
    Quality with respect to Service started high, and then fell back to acceptable.   If the initial claim took as long as the addendum, I would probably have a different co. by now.
    But as is often said – Insuance is like gambling – except you hope you don’t “win”.  So that puts cost as a greater influence than service.  And it is the most readily seen by customers.

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    #179188

    Anonymous
    Guest

    (You wrote – The beauty of Lean Six Sigma is that its data-driven rather than based on fiend-of-a-friend stories.)The scanner I referred to was a Dupont-Fujifilm joint venture, and I have first hand knowledge.

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    #179189

    Kluttz
    Member

    I was refering to your co-workers house story for that part of the response. 
    But if you want my take (or anyone else’s take, for that matter) on your scanner project, then provide the details and I’ll (we’ll) take a look at it.
    Until then, it’s just an anecdote

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    #179192

    Anonymous
    Guest

    The lady is not my co-worker.Do you mean anecdotal in the same way that the VOC is all that is necessary and sufficient to produce a marketable product?Personally, I’ll take Toyoda’s advice and regard all employees as customers, including the technologists and the design team.If this is what you mean then I agree. If you mean marketing people then I strongly disagree.Have a great New Year!

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    #179193

    Kluttz
    Member

    Its anecdotal in terms of I don’t have facts or supporting documentation.  And I’m not talking marketable.  I’m talking quality.  And the ability to deliver a product profitably is a central tenet of quality.  Its what balances the needs of the external customer with the needs of the internal customer.  It’s also why the definition of quality is different at Rolls Royce than it is at Hyundai (or at Allstate vs Geico).
    And I don’t think that it’s just Toyota’s advice.  The concept of internal and external customers is pretty much universally accepted in the LSS world. 
     

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    #179209

    Anonymous
    Guest

    I’m also referring to Quality, but the definition I use is different to yours.You stated – (And the ability to deliver a product profitably is a central tenet of quality) – but this is patently not true. Many companies have had high quality products they couldn’t sell, and did not make a profit on those products.If as you claim profit is a central tenet of quality, then you must have a high quality banking system – one that did not need a bailout – unlike those in Sweden, France, and Italy, where they took less risks to make unsustainable profits.As for your other statement that the internal and external customer model is universally accepted in LSS is not evidenced in companies I visit.You also stated(It doesn’t matter what the customer wants if it can’t be delivered profitably) but many internal workers would like to own a Rolls Royce, but can’t afford the price.

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    #179215

    Union of Cojoined Scientists
    Member

    I don’t think you’re following.

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