3. An insurance underwriting process consists of the following separate stages:

What is the ‘value-added’ percentage for the process???? (Hint: use Little’s Law to work out how long applications have to wait at each stage before they are processed. Little’s Law is covered in Chapter 6.)

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Stage Data entry Processing time per application (minutes) Average work-in- progress before the stage 30 250 Retrieve client details 5 1,500 Risk assessment 18 300 Inspection 15 150 Policy assessment 20 100 Dispatch proposal 10 100