At an insurance company, it takes 8 minutes to process a payment although the actual lead...

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At an insurance company, it takes 8 minutes to process a payment although the actual lead time averages 6 days. A late notice sent to the customer if the bill is not paid within 3 days of the due date. At the call center, 9 employees answer 95,000 calls annually from auto insurance customers, with an average duration of 8.1 minutes. The company has 155,000 auto insurance customers that pay an average bill of $1570 per year, billed quarterly. Twelve percent of callers ask questions related to their late bill notice, but almost all of them have paid their bill. Justify a project to reduce the bill processing time from 6 to 2 days, which is estimated to reduce the last notice calls from 12% to 3%. Assume that the firm makes 5% on money invested in its operations and that the "fully loaded" (i.e., with benefits & overhead) labor cost is $40 per hour. At an insurance company, it takes 8 minutes to process a payment although the actual lead time averages 6 days. A late notice sent to the customer if the bill is not paid within 3 days of the due date. At the call center, 9 employees answer 95,000 calls annually from auto insurance customers, with an average duration of 8.1 minutes. The company has 155,000 auto insurance customers that pay an average bill of $1570 per year, billed quarterly. Twelve percent of callers ask questions related to their late bill notice, but almost all of them have paid their bill. Justify a project to reduce the bill processing time from 6 to 2 days, which is estimated to reduce the last notice calls from 12% to 3%. Assume that the firm makes 5% on money invested in its operations and that the "fully loaded" (i.e., with benefits & overhead) labor cost is $40 per hour.