Number of claims processed per FTE that performs the process "process warranty claims"

This measure calculates number of warranty claims processed per full time equivalents (FTEs) that performs the process "process warranty claims". The Process "process warranty claims" includes [Identifying, investigating, and processes warranty claims. This process includes: receipt and validation of a warranty claim; definition and diagnosis /root cause analysis of an issue and recommendation for corrective action; the determination of responsibility for settlement of the claim; the transaction being approved or denied; and the originator being notified and payment authorized. In the case of a recurring event, further investigation (definition and diagnosis or root cause analysis) is performed, and a recommendation for corrective action is made and implemented in production/design. It ends when the claim is closed.]. This Process Efficiency measure is intended to help companies minimize waste and refine resource consumption related to the process "Process claim, adjustments, approvals and other service events".

Benchmark Data

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Measure Category:
Process Efficiency
Measure ID:
104873
Total Sample Size:
604 All Companies
Performers:
25th Median 75th
- 2,111 -
Key Performance Indicator:
Yes
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Compute this Measure

Units for this measure are claims.

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Total number of warranty claims processed /Number of FTEs who to perform the process "process warranty claims"

Key Terms

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To calculate the number of full-time equivalents employed during the year for each respective process or activity, you must prorate the number of employees and the hours spent performing each process/activity. Assume that a full-time worker represents 40 hours per week. Provide the average number of full-time equivalents employed during the year for each respective process. Include full-time employees, part-time employees, and temporary workers hired during peak demand periods. Allocate only the portion of the employee's time that relates to or supports the activities identified for an applicable process. Prorate management and secretarial time by estimating the level of effort in support of each activity, by process.

For example, a part-time secretary in the finance department for XYZ, Inc. charges all of his time to finance department activities. He works 20 hours per week. The secretary splits his time evenly supporting employees working in the general accounting process and the financial reporting process. Thus, his time should be allocated by process. So, if he works throughout the year and supports these two processes, his time would be split evenly as:

20hrs/40hrs = .5FTE * 50% for general accounting = .25FTE for general accounting

20hrs/40hrs = .5FTE * 50% for financial reporting = .25FTE for financial reporting

Process efficiency represents how well a process converts its inputs into outputs. A process that converts 100% of the inputs into outputs without waste is more efficient than one that converts a similar amount of inputs into fewer outputs.

The metric value which represents the 50th percentile of a peer group. This could also be communicated as the metric value where half of the peer group sample shows lower performance than the expressed metric value or half of the peer group sample shows higher performance than the expressed metric value.

Measure Scope

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Cross Industry (8.0)

  • 6.3.2.1 - Receive warranty claim (20096) - Receiving incoming warranty claims. Route claim to correct department. Document claim.
  • 6.3.2.2 - Validate warranty claim (12671) - Ensuring that the claim falls within the parameters of the warranty in question. After validation is made, the claim must be investigated.
  • 6.3.2.3 - Investigate warranty issues (20097) - Executing investigational and analysis of warranty claims. This involves notification and definition of a warranty issue, includes the scheduling of a field service agent to perform further investigation; the request and receipt of defective parts; and diagnosis/root cause analysis. This concludes with the receipt of the result and recommendation for corrective action.
    • 6.3.2.3.1 - Define issue (20098) - Defining the issue of the claim. The warranty team will look into the issue and understand whether it is covered by the claim code or if more detail is required. Field service will be scheduled to further qualify the definition of the issue and to collect more evidence.
    • 6.3.2.3.2 - Schedule field service (12677) - Scheduling additional investigative field service. This is performed for high priority claims or claims that require additional investigation. Field service engineers will gather additional information, perform further investigation, and qualify the definition of the issue.
    • 6.3.2.3.3 - Request and receive defective part (12678) - Requesting receipt of a defective part for further investigation.
    • 6.3.2.3.4 - Investigate issue/perform root cause analysis (20099) - Investigating claims by an appropriate functional representative. Once the issue has been clearly defined and diagnosed and a recommendation for corrective action is determined, it will be provided to the warranty management team.
    • 6.3.2.3.5 - Receive investigation result/recommendation for corrective action (20100) - Receiving investigative results to assess claim approval or denial. The warranty team will assess the results of the investigation and the recommendations for corrective action.
  • 6.3.2.4 - Determine responsible party (20101) - Identifying responsible party for a claim. There is no negotiation with the supplier at this point. There can be multiple warranties applicable to the same part: a new part warranty, a new product warranty (for the product the part is installed on), and a supplier warranty from the company that last repaired the part. The information required for this decision would be the output of Receive component/part and analyze fault [19728]."
  • 6.3.2.5 - Manage pre-authorizations (20102) - Authorizing claims prior to submittal.
  • 6.3.2.6 - Approve or reject warranty claim (12668) - Following Defining issue [20098], an approval or rejection with be made against the warranty claim. If it is deemed that the claim falls within the warranty parameters, the claim will be approved. If the claim is deemed to fall outside warranty parameters, the claim with be rejected.
  • 6.3.2.7 - Notify originator of approve/reject decision (20103) - Contacting the originator of whether the warranty claim has been approved or rejected.
  • 6.3.2.8 - Authorize payment (20104) - Allowing for a payment to be made to the claimant.
  • 6.3.2.9 - Close claim (20105) - Archiving and closing the warranty claim after a final decision has been made to either approve or reject.
  • 6.3.2.10 - Reconcile warranty transaction disposition (12667) - Assuring that the warranty transaction has been completed.