Southern Insurance Company has a main processing Centre in Waterloo Ontario that is responsible for all Canadian claims. On average they process over a thousand claims per month for six major insurance clients. Claims are for a range of services including dental, medical, vision and professional services. Agents work online processing claims as well as answering queries by telephone. Recently it has been brought to the Management's attention that errors are becoming an increasing problem. The company does not have a Quality Control Department, but the Operations performance does fall under the responsibility of David Lui, Operations Manager.

In a four week period in July 2022, each day, a group of claims were removed from the system and given a thorough evaluation. Results are recorded in the chart below.

In August, extra training took place for all employees. All associates in the Claims department attended either a six- hour session, or two four-hour sessions depending on factors such as their position, length of service, and which clients they worked for. Southern Insurance spent over $80,000 to complete the training, convinced that the reduction in number of errors would save the company money in the long run.

Approximately 20% of the employees in the Claims Department have been working for Southern for less than one year, so this seemed like a good time to refresh the training that was originally given. In the past year there has been several new major customers for Southern which resulted in new forms/ documents and processes, as well as a much higher workload.

In September 2022, David Lui felt it was important to determine whether the training that he implemented resulted in a reduction in the number of errors in customer claims.Once again, the same number of randomly selected claim forms were removed from the system each day. Each form was carefully evaluated to look for errors.

The information below is from the July (original data) and from September (after the training). As a new hire from the Business Program at Seneca College, you have been asked to 1) complete basic evaluation of the data, 2) report on the success of the training program and 3) to recommend next steps.

Assignment:

1. Draft a Professional style Pareto Table and Graph for the Pre-training data (July). (4)
2. Using the July data, draw a Run Chart (Line Chart) for each of the top 2 errors indicated on your Pareto Chart. (4)
3. Draft a Professional style Pareto table and graph for the Post-training data (Sept). (4)
4. Using the Sept data, draw a Run Chart (Line Chart) for each of the top 2 errors indicated on your Pareto Chart. (4)
5. Below these two sets of data, create a text box and in 1-2 paragraphs discuss the results in each area using % change as well as the overall % change. Was the training successful in your opinion? Why or why not? (4)

6. Include a text box that comments on whether you would recommend that Southern should consider ISO Certification. What do you advise and why? (1 paragraph) (2)

7. From the information you have discovered in your Pareto Charts and Run Charts give your top two recommendations for Southern Insurance Processing Centre to improve their overall quality performance going forward. (4)

Each Pareto Analysis must include the Pareto table and the Pareto chart.

No part of this report should be written in the first person. Do not use I, we, you, me, my etc.

Please remember to identify your charts/graphs- Main Titles, X-Axis and Y-Axis Titles and Scale, other names of data. Be sure to cite any external references

July Data (Original Data)

Date	Information Incomplete	Procedure Error	Authorization Missing	Documents Missing	Unnecessary Delay	Customer data Incorrect	Data Entry Error	Payment Error
4	1	3	0	3	1	2	0	2
5	2	2	1	1	3	1	0	1
6	1	2	2	6	2	0	1	3
7	2	0	1	0	0	2	0	0
8	0	4	0	2	1	4	2	0
11	0	2	0	3	2	3	0	1
12	3	3	0	4	0	0	0	1
13	2	2	0	0	3	0	0	0
14	0	3	1	3	0	2	2	0
15	0	2	0	4	1	2	1	0
18	2	5	1	5	2	0	1	1
19	0	2	1	6	0	0	0	0
20	1	3	1	5	1	0	0	0
21	1	2	1	4	1	1	2	1
22	5	1	0	3	0	2	2	2
25	0	3	2	5	1	0	0	1
26	2	2	0	4	0	0	0	0
27	1	1	1	6	0	1	1	1
28	0	3	0	6	0	2	0	0
29	1	1	0	2	1	0	1	0

Sept Data ( After Improvement)

Date	Information Incomplete	Procedure Error	Authorization Missing	Documents Missing	Unnecessary Delay	Customer data Incorrect	Data Entry Error	Payment Error
5	1	1	0	3	1	0	0	1
6	0	2	0	0	1	0	0	1
7	1	1	1	3	1	0	1	0
8	2	3	0	0	0	1	0	0
9	1	2	0	1	1	3	1	0
12	0	2	0	2	2	1	0	1
13	2	4	0	0	0	0	0	1
14	1	1	0	0	3	0	0	0
15	0	4	1	2	0	1	2	0
16	0	1	0	3	1	1	1	0
19	1	3	1	1	2	0	1	1
20	0	3	1	3	0	0	0	0
21	0	2	0	2	0	0	0	0
22	1	2	1	1	1	0	0	1
23	2	4	0	2	0	0	1	0
26	0	5	1	2	1	0	0	1
27	1	0	0	3	0	0	0	0
28	1	3	0	4	0	1	1	0
29	0	0	0	2	0	0	0	0
30	1	1	0	2	1	0	1	0