Assignment:
During the last month, an insurance company has been studying the amount of insurance claims with mistakes, made by its clients: These claims represent extra costs to the company. They have provided you with 60 samples, each with 100 insurances claims, for a total of 6000, and the number of insurance claims with mistakes, Non Compliance, in each sample. Develop a p-chart with 3 sigma limit and comment on the process. If the process is out-of-control, the company will institutionalize a new process that will guide customers on how to properly fill out the claims.
The actual cost of amending a claim with mistakes (calling the customer, updating files, etc.) is $2/claim. The cost to guide a customer would cost $1.25. What would be the best action plan that the company should implement; (1) Letting things as they are or (2) institutionalizing the new process? Illustrate and explain.
