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 operations management, 'bottleneck analysis' is used to:
Answer: Find the step in a process that limits overall throughput
Bottleneck analysis identifies the constraint or limiting step in a process that determines the maximum output rate of the entire system.
Which of the following best describes 'poka-yoke' in process design?
Answer: An error-proofing mechanism that prevents mistakes or makes them immediately obvious
Poka-yoke refers to mistake-proofing mechanisms designed into a process to prevent errors from occurring or to immediately detect them when they do.
A P&C insurance company implements a statistical process control (SPC) chart to monitor loss ratios. What does a point outside the control limits indicate?
Answer: A process that may be experiencing special cause variation requiring investigation
A point outside control limits signals special cause variation — a non-random signal suggesting the process may have changed and warrants investigation.
In the Theory of Constraints (TOC), once a bottleneck is identified, the next step is to:
Answer: Exploit the bottleneck by maximizing its utilization before adding resources
TOC prescribes exploiting the constraint first — getting maximum output from the existing bottleneck resource — before deciding to elevate or add capacity.
What is 'demand variability' and why is it significant for insurance operations staffing?
Answer: Fluctuations in workload volume over time that make capacity planning challenging
Demand variability refers to fluctuations in workload volume (e.g., catastrophe-driven claim surges), which complicates staffing decisions and resource planning.
Which document serves as the primary governance tool defining roles, responsibilities, and accountabilities in a process management framework?
Answer: RACI matrix
A RACI matrix (Responsible, Accountable, Consulted, Informed) clearly defines who does what in a process, preventing role confusion and accountability gaps.
In actuarial ratemaking operations, what is the purpose of a 'rate change monitoring' process?
Answer: To track and quantify the earned impact of implemented rate changes on the book of business
Rate change monitoring tracks how implemented rate changes are earning into the in-force book, allowing actuaries to assess the financial impact on earned premiums.