Monitoring Operational Perfomance Flashcards Preview

Managing Operations > Monitoring Operational Perfomance > Flashcards

Flashcards in Monitoring Operational Perfomance Deck (18):
1

Business information consists of four main categories, what are those categories?

1- STAFF and payroll records
2- WORK information, work in progress and completed work, Loss Adjuster reports, compliance alert, loss adjuster activity
3- CLIENT records, names, addresses, telephone, etc
4- FINANCIAL records, accounts payable and receivable, cheque-book management, profit and loss account, balance sheet


2

With regard to practice management programs, the system must provide a facility to export what financial data to an accounting program?

- Accounts payable and receivable
- Balance sheet
- Cheque book management
- Profit and loss account

PROMPT- ABCP

3

With regard to loss adjusting practice management programs, the system must produce reports on what information?

- Progressive job costs
- Job costs by individual loss adjusters
- Loss adjuster activity/inactivity
- Loss adjuster job analysis
- Compliance alert

4

With regard to practice management programs, the system must provide what type of information on client records?

- Jobs record by category by insurer
- Jobs received by insurer by months

5

What information should be included when inputting new instructions received from the principal into the practice management program?

- Principles instructions
- Policy details
- Claim details
- Insureds details
- Any other parties involved

6

What type of documents can be produced using the information from a practice management program?

- First report
- Final report
- Releases or discharge forms
- Letters to the insured
- Request for quotations
- Acceptance of quotations

7

What is accounting?

Accounting is a basic function of any business. It is a methodology used to keep the financial records of a business.

8

What are the main objectives of the accounting process?

- Record all financial transactions
- Classify and summarise transactions into one of the following categories- Income- Expense- Asset- Liability
- To determine the PROFIT made by the business over a specified period
- To determine the NET WORTH of the business at any given point in time

9

A good accounting system will allow a business to ‘- - and- - ‘ its performance?

‘Test and Measure’

10

Testing and measuring performance allows the business to continually improve its performance. What can then be taken to change work practices and improve the financial effects?

Action.

Test + Measure + Action = Improved Business

11

What are the specific record-keeping requirements specific to Loss Adjusters?

- Compiling an accurate information base from which reports can be derived to assist decision-making
- Keeping accurate historical records of transactions, including- Charging expenses to files- Payment of creditors
- Meeting statutory requirements, including- Payment of taxes- Auditing by tax officials

12

Loss adjusters and staff use accounting systems every day to perform what types of tasks?

- Budgeting
- Handling payments to general creditors and suppliers
- Recording fee income
- Keeping financial records
- Financial reporting
- Audits
- Checking facts and answering queries from suppliers and principles

13

With regard to monitoring operational performance. Discuss ‘Work in Progress’?

The practice management program you use should be able to generate management report such as a ‘ work in progress’ report. This report should be able to show details of selected jobs along with a list of activities and costs.

14

What types of reports are preferred to be visible on the Loss Adjusters dashboard?

- Compliance alerts
- Claims listing by principal
- Claims listing by job number
- Jobs received from individual or principal or all principals over a given period

15

Discuss a monthly cash budget projection?

A monthly cash budget projection takes into account anticipated income and expenses to project the CASH BALANCE at the end of each month in order to determine if any corrective action needs to be taken.

16

What percentage of income should a Loss Adjusters budget be set at?

The Fee Income of a standard Loss Adjuster should be 3x their operating budget.

17

If operational objectives are not attained, what should the operations manager do?

1- Identify why the objective wasn’t attained
2- Determine whether the discrepancy between the actual and projected performance is serious enough to require further action, or whether it will ‘sort itself out in time’
3- If the discrepancy is serious and unlikely to rectify itself, then the manager will need to take some form of corrective action
4- If the manager then judges that the objectives cannot be attained, or are unrealistic, then further action must be taken

18

When problems arise and operational objectives are not attained, what action should be taken?

In these circumstances, the facts should be analysed and the appropriate action taken to minimise problems. A restructure of the business plan may be required which can be carried out using a SWOT analysis to determine what objectives may have been unrealistic. The operational objectives then need to be rewritten and checked regularly.