Answered: Operation: Insurance claim processing…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Question

For a time study of a health insurance claims-adjusting process, the analyst uses the continuous method of recording times. The job is divided into four work elements. Shown in Figure are the performance rating factors, RF, and the continuous method recorded times, r, for each work element.

a. Calculate the normal time for this job.
b. Calculate the standard time for this job, assuming that the allowance is 20 percent of the normal time.
c. What is the appropriate sample size for estimating the time for element 2 within {10 percent of the true mean with 95 percent confidence?

Operation: Insurance claim processing
Date: 10/09/15
Observer: Jennifer Johnson
Observations
Work Element
1
2
3
4
5
RF
0.60 0.50 0.52
t 0.50 | 0.55 0.45
r 0.50 | 3.30 | 5.70| 8.20 10.85
1.1 0.057O
1. Check form completion
and signatures
t 0.20 | 0.15 | 0.25 | 0.35 0.25 0.24
r 0.70 | 3.45 | 5.95 | 8.55 11.10
2. Enter claim amounts,
1.2 0.0742
check math
0.70 0.65 0.65
t 0.75 | 0.00 0.55
r 1.45 | 4.05 | 6.50
3. Determine proportion of
1.2 0.0791
claim to be disallowed
9.25 11.75
t 1.30| 1.20
r 2.75 | 5.25
4. Generate form letter,
1.10
1.10
1.30 1.20
0.9 0.1000
enter data for check
7.60 10.35 13.05

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