Chapter 16, Problem 2CS

Summary Introduction

Introduction:

Company MI is a major insurance office which is accountable for processing insurance claims. Despite the rapid growth, the company experiences few lags in its work flow. There is an inflow of 25,000 claims but the outflow is less than 25,000. The manager of claim processing, Mr. SC, has decided to implement JIT processing system to overcome the existing issue.

Mr. SC has hired some temporary part time professionals and provides training to the worker with JIT. Cross-training exercises will also be given to workers to work within departments. The team was trying to bring standardization in the work procedure to minimize time.

The team came to a conclusion that the office facilities should be changed to a group technology layout. The current layout is shown in the diagram.

The layout has three departments and the claim has to flow through all departments. The number of workers required for each department varies depending on the claims. So, company MI has over 180 workers to process claims.

To draw: The restructured cell layout for claim processing.