CAS Operations and Process Management 2

Question 1

In the context of actuarial operations, what does 'cycle time' refer to?

Accepted Answer

The total elapsed time from process start to completion

Answer

Cycle time measures the total elapsed time from when a process begins until it is completed, including all wait times and processing times.

Question 2

Which lean manufacturing concept focuses on producing only what is needed, when it is needed, in the amount needed?

Accepted Answer

Just-In-Time (JIT)

Answer

Just-In-Time (JIT) is a lean concept aimed at reducing inventory waste by producing or delivering exactly what is needed at the right time.

Question 3

An insurance company's claims department has a throughput of 200 claims per day and average work-in-process of 1,000 claims. What is the average cycle time per claim?

Accepted Answer

5 days

Answer

By Little's Law, cycle time = WIP / throughput = 1,000 / 200 = 5 days.

Question 4

What is the primary purpose of a SIPOC diagram in process management?

Accepted Answer

To provide a high-level view of a process including Suppliers, Inputs, Process, Outputs, and Customers

Answer

A SIPOC diagram gives a high-level overview of a process by identifying Suppliers, Inputs, Process steps, Outputs, and Customers.

Question 5

In actuarial reserve operations, a 'cold review' of reserve estimates refers to:

Accepted Answer

An independent review performed without access to the prior reviewer's conclusions

Answer

A cold review is an independent actuarial review performed without the reviewer having prior knowledge of or access to another actuary's conclusions, ensuring objectivity.

(CAS) Casualty Actuarial Society Practice Test

(CAS) Casualty Actuarial Society Practice Test

CAS Operations and Process Management 2