Deutsche Allgemeinversicherung The Primary Advantages of DAV Using Statistical Process Control (SPC) Statistical Process Control (SPC) helps identify the effectiveness of processes. This tool is especially effective when it comes to manufacturing. However, this tool is also applicable for controlling quality of services. One of the primary advantages of the tool is that it helps identify the exact points at which something unusual (either good or bad) happened. Thus, it is quite easy to control quality as it is clear when something went wrong and when some efficient strategies were used. DAV was a successful company, but Annette Kluck knew that it was not enough as it was vital to develop and improve the quality of services provided as competitors were also evolving (“Deutsche Allgemeinversicherung,” 1997). The use of SPC was a very effective way to work out strategies to improve quality of services provided. Therefore, top management was able to see when the quality of the process was poor and when the results were surprisingly high. Poor performance (as well as high quality processes) was analyzed. There was no need to think of the amount of incorrect documents as it was more effective to see when and why poor results occurred. The company did not try to remove employees who revealed poor results, but they managed to improve the very process, which was much more efficient for the company’s overall performance. The Major Challenges and Limitations in Applying SPC to a Service Industry as Opposed to a Manufacturing Industry One of the greatest challenges in applying SPC to a service industry as opposed to a manufacturing industry is that it may be difficult to identify the variable to develop the charts. The employees of DAV involved in the project often felt frustrated as they could not figure out what to measure (“Deutsche Allgemeinversicherung,” 1997). When it comes to a manufacturing industry, the things are quite easy as defects in a product are often obvious and it is clear what process one wants to develop. As far as services are concerned, a process can be rather difficult to divide into meaningful variables applicable for measurement. Besides, employees tend to identify different variables and this makes it hard to choose the most appropriate one. Furthermore, if there is no pattern in the process, SPC cannot be exploited as the process in that case may be effective even though certain circumstances negatively affected the services provided. The Problems Facing Annette Kluck from the Most to the Least Serious The most serious issue facing Annette Kluck was prioritizing mistakes. It was often unclear whether some mistakes could be regarded as vital (“Deutsche Allgemeinversicherung,” 1997). Admittedly, it was crucial to prioritize mistakes properly as it could affect the charts and further analysis. Some mistakes were not crucial so it was clear that they could be disregarded. This enabled the company’s employees to focus on meaningful mistakes that undermined effectiveness of the process. This helped the employees manage their time more efficiently. As have been mentioned above, it can be difficult to measure quality of services especially when it comes to legal cases. In the first place, it was quite diff