Exhibit 3 Backlog and Turnaround Time Calculations for the Week Ending 6 September 1991 Number of Requests to be Processed RUNS RAPS RAINS RERUNS Total Throughput Days Operating Steps 1.0 1.0 11.0 11.0 1.0 1.0 1-Distribution (4 clerks) Total at DCs To be processeda Average per DC 95% SCT per request Total minutes 3.0 3.0 0.75 107.8 80.9 0.25 128.1 32.0 2.75 0.25 68.1 17.0 43.2 118.8 1.0 11.0 1.0 3.0 6.0 36.0 2-Underwriting (3 teams) Total at DCs Total at UTS To be processeda Average per UT 95% SCT per request Total minutes 4.0 1.33 107.2 142.6 3.0 7.0 10.0 3.33 87.5 291.4 7.0 2.33 49.4 115.1 47.0 15.67 62.8 984.1 3-Rating (8 raters) Total at DCS Total at UTS Total at RTS To be processeda Average per RT 95% SCT per request Total minutes 1.0 3.0 1.0 5.0 0.625 112.3 70.2 3.0 7.0 2.0 12.0 1.5 88.7 133.1 1.0 6.0 1.0 8.0 1.0 89.4 89.4 11.0 36.0 7.0 54.0 6.75 92.2 622.4 4-Policy Writing (5 writers) 1.0 3.0 Total at DCs Total at UTS Total at RTS Total at PWS To be processeda Average per PW 95% SCT per request Total minutes 11.0 36.0 7.0 2.0 56.0 1.0 1.0 0.0 5.0 1.0 89.3 89.3 11.2 9.0 1.8 72.1 129.8 67.0 750.4 Summary Total backlog Total TAT 82.0 Requests-in-Process 8.2 Days (0.6 + 3.4 + 2.0 + 2.2) Notes: DC = Distribution Clerk 95% SCT = 95th percentile of the Standard Completion Time TAT = Turnaround Time for a new request UT = Underwriting Team RT = Rater PW= Policy Writer RUN = Request for Underwriting RAP = Request for Price RAIN = Request for Additional Insurance RERUN = Request for Renewal ato be processed includes Requests-in-Process at this step and at upstream steps. QUESTION : What are the important measures of operating performance for the Fruitvale branch? How well has the branch been performing according to these measures? Can you identify the problems in the way Manzana is calculating turnaround time in Exh. 3