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Further, the problem is compounded by employees not delivering output efficiently because of influence of incorrectly calculated TAT (Pygmalion effect).
In Exhibit 3, the manager has calculated the Total TAT as 8.2 days assuming that various activities wait for earlier activity to complete before starting, e.g. Underwriting starts work after 0.6 days within which DC clears backlog. Further, it assumes that policies move from one activity to another in batches equal to total number of policies with the department. An illustration of this is shown in the following Gantt chart.
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