Estabrook Insurance Company is reviewing complaints from customers that the processing of insurance claims for glass damage in automobile accidents is taking an excessive amount of time. Customers complain of calls not being returned, delayed processing of insurance checks, talking to multiple people in the claims process and general confusion. It is taking customers up to one month to receive checks for damage claims. The subactivities involved at a local agency and the elapsed time to complete the activity for an average claim are presented below:

Required:
(a) Which of the above activities would be viewed as value-added from the eyes of the customer?
(b) What percentage of time is being spent on value-added activities?
(c) Comment on the process and make suggestions for improvement. (Source: Institute of Management Accountants- Regional Education Assistance Program - Seminar entitled "Process Mapping and Analysis"

Question

Estabrook Insurance Company is reviewing complaints from customers that the processing of insurance claims for glass damage in automobile accidents is taking an excessive amount of time. Customers complain of calls not being returned, delayed processing of insurance checks, talking to multiple people in the claims process and general confusion. It is taking customers up to one month to receive checks for damage claims. The subactivities involved at a local agency and the elapsed time to complete the activity for an average claim are presented below:
 
Required:
(a) Which of the above activities would be viewed as value-added from the eyes of the customer?
(b) What percentage of time is being spent on value-added activities?
(c) Comment on the process and make suggestions for improvement. (Source: Institute of Management Accountants- Regional Education Assistance Program - Seminar entitled "Process Mapping and Analysis"

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The Answer of Estabrook Insurance Company is reviewing complaints from customers that the processing of insurance claims for glass damage in automobile accidents is taking an excessive amount of time. Customers complain of calls not being returned, delayed processing of insurance checks, talking to multiple people in the claims process and general confusion. It is taking customers up to one month to receive checks for damage claims. The subactivities involved at a local agency and the elapsed time to complete the activity for an average claim are presented below:
 
Required:
(a) Which of the above activities would be viewed as value-added from the eyes of the customer?
(b) What percentage of time is being spent on value-added activities?
(c) Comment on the process and make suggestions for improvement. (Source: Institute of Management Accountants- Regional Education Assistance Program - Seminar entitled "Process Mapping and Analysis"

Estabrook Insurance Company Is Reviewing Complaints from Customers That the Processing