Operations and Process Management Flashcards
7 cards from real CAS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Operations and Process Management flashcards as text
In the context of actuarial operations, what does 'cycle time' refer to?
Answer: The total elapsed time from process start to completion
Cycle time measures the total elapsed time from when a process begins until it is completed, including all wait times and processing times.
Which lean manufacturing concept focuses on producing only what is needed, when it is needed, in the amount needed?
Answer: Just-In-Time (JIT)
Just-In-Time (JIT) is a lean concept aimed at reducing inventory waste by producing or delivering exactly what is needed at the right time.
An insurance company's claims department has a throughput of 200 claims per day and average work-in-process of 1,000 claims. What is the average cycle time per claim?
Answer: 5 days
By Little's Law, cycle time = WIP / throughput = 1,000 / 200 = 5 days.
What is the primary purpose of a SIPOC diagram in process management?
Answer: To provide a high-level view of a process including Suppliers, Inputs, Process, Outputs, and Customers
A SIPOC diagram gives a high-level overview of a process by identifying Suppliers, Inputs, Process steps, Outputs, and Customers.
In actuarial reserve operations, a 'cold review' of reserve estimates refers to:
Answer: An independent review performed without access to the prior reviewer's conclusions
A cold review is an independent actuarial review performed without the reviewer having prior knowledge of or access to another actuary's conclusions, ensuring objectivity.
Which metric best measures the efficiency of a claims handling process from the insured's perspective?
Answer: Claims settlement cycle time
Claims settlement cycle time directly measures how quickly the insurer resolves claims, which is the primary concern from an insured's perspective.
What is 'process capability' in the context of Six Sigma operations management?
Answer: A statistical measure of how well a process meets specification limits
Process capability (Cp, Cpk) is a statistical measure comparing process variation to specification limits, indicating how consistently a process meets requirements.