Sunshield Insurance takes 15 days to make payments on insurance claims. Claims are processed through three departments: data input, claims audit, and claims adjustment. The three departments are located in different buildings, approximately one hour apart from each other. Claims are processed in batches of 200. Each batch of 200 claims moves through three departments on a wheeled cart. Management is concerned about customer dissatisfaction. Hence, the implementation of the following measures is adopt by the management to reduce lead time. Adopt just-in-time principles in its claims payment operations Switching from paper forms to electronic forms Design claims payment "cells" that are organized around different types of insurance products or customers rather than processes Implement a "pull" scheduling processes. Please provide explanation for each measure on how it reduces the lead time of Sunshield. Thanks
Sunshield Insurance takes 15 days to make payments on insurance claims. Claims are processed through three departments: data input, claims audit, and claims adjustment. The three departments are located in different buildings, approximately one hour apart from each other. Claims are processed in batches of 200. Each batch of 200 claims moves through three departments on a wheeled cart. Management is concerned about customer dissatisfaction. Hence, the implementation of the following measures is adopt by the management to reduce lead time. Adopt just-in-time principles in its claims payment operations Switching from paper forms to electronic forms Design claims payment "cells" that are organized around different types of insurance products or customers rather than processes Implement a "pull" scheduling processes. Please provide explanation for each measure on how it reduces the lead time of Sunshield. Thanks
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sunshield Insurance takes 15 days to make payments on insurance claims. Claims are processed through three departments: data input, claims audit, and claims adjustment. The three departments are located in different buildings, approximately one hour apart from each other. Claims are processed in batches of 200. Each batch of 200 claims moves through three departments on a wheeled cart. Management is concerned about customer dissatisfaction. Hence, the implementation of the following measures is adopt by the management to reduce lead time.
- Adopt just-in-time principles in its claims payment operations
- Switching from paper forms to electronic forms
- Design claims payment "cells" that are organized around different types of insurance products or customers rather than processes
- Implement a "pull" scheduling processes.
Please provide explanation for each measure on how it reduces the lead time of Sunshield. Thanks
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