Case Study of Kaizen Implementation for Insurance Company

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Kaizen Institute India

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Welcome To Kaizen Institute


Transactional/ ServiceProcess Improvement

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Generation and delivery of client statements – Before Kaizen



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Generation and delivery of client statements – After Kaizen



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Analysis of problem – 5 Why Analysis (Muda of Redoing)



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Results



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Preliminary Analysis

Sr.No.

Hand off(Dealing

Hand)

Process Steps(Activities)

Location (External / Internal)

Start date Closing

Date Time Spent

(days) V A / Muda Type of MUDA

VA Time (Minutes)

1 Clm Officer E-mail of notification of claim received Internal 30.11.2009 30.11.2009 1 VA 10

2 Clm Officer Searching the U/W file to verify cover Internal 01.12.2009 01.12.2009 1 Muda

Searching, Motion/Transportation 15

3 Clm Officer Sending notification e-mail to Insurer Internal 01.12.2009 01.12.2009 1 VA 10

4 Clm Officer Requesting for Claim support documents from Insured Internal 02.12.2009 02.12.2009 1 MudaWaiting, overprocessing 15

5 Client E-mail from client advising of Location of vehicle. External 01.12.2009 03.12.2009 3 5

6 KenindiaLetter received requesting for support documents, an waiting for Client to respond. External 01.12.2009 13.01.2010 44 Muda Waiting

7 Clm Officer Sending e-mail to Kenindia to Send assesor to client Internal 13.01.2010 13.01.2010 1 VA 10

8 Clm OfficerReceiving and forwarding Documents to Kenindia, and waiting for Kenindia's Response Internal 14.01.2010 26.01.2010 12 Muda

waiting, overprocessing, Motion 30

9 Clm OfficerLetter received requesting for more documents, forwarding the letter to Client Internal 26.01.2010 27.01.2010 2 Muda

waiting, overprocessing, Motion 15

10 Clm OfficerAssesors report received, Contesting the offers by writing to Kenindia, and waiting for their response. Internal 28.01.2010 11.02.2010 14 Muda Waiting 30

11 Clm Officer More support Documents sent to kenindia Internal 11.02.2010 11.02.2010 1 VA 10

12 Clm OfficerLetter from Kenindia on 2nd Assesment, forwarded to Client. Waiting for Client to Respond. Internal 11.02.2010 26.02.2010 15 Muda Waiting 20

13 Clm Officerrequest to kenindia for salvage offers, Waiting for Kenindi'a Response,. Internal 26-02-2010 11.03.2010 13 Muda Waiting 10

14 Clm Officer salvage offers communicated Internal 11-03-2010 11-03-2010 1 VA 5

15 Clm Officerasked kenindia for settlement, Waiting for Kenindia Settlement Internal 11-03-2010 18-03-2010 7 muda Waiting 15

16 Clm Officer Internal 18-03-2010 26-03-2010 8 muda

17 Clm Officer Internal 26-03-2010 01.04-2010 5 muda

18 Clm Officer 10

19 Clm Officer Internal 01-04-2010 08-04-2010 7 muda 10

20 Clm Officer Internal 08-04-2010 20-04-2010 12 Muda

21 Clm Officer 10222324



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SR. NO

HANDLERS DAYS 1-7 DAYS 8-14 DAYS15- 21

1CLAIMS

OFFICERDAY1: NOTIFY INSURER

DAY 10: CONTESTING OF FIRST OFFER

DAY 14: ASK FOR D.V.

2 CLIENTDAY 1: NOTIFIES OF CLAIM

DAY 3: SUBMITS SUPPORT DOC'S

DAY 11: CLIENT SUBMITS OWNERSHIP DOCUMENTS

DAY 17: EXECUTED D.V. SUBMITTED

3 INSURERDAY 1: REQUETS FOR DOC'S

DAY 5: APPOINTS ASSESOR

DAY 9: SETTLEMENT OFFER RECEIVED

DAY 11: APPOINT SECOND ASSESOR

DAY 13: SALVAGE OFFER RECEIVED

DAY 15: INSURER RELEASES D.V. DAY 19: SETTLEMENT CHEQUE RELESED

PROCESS: FUTURE STATE MAP

TEAM: CLAIMS GP3 - CHUI GROUP

Claims Processing – After Kaizen



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PROBLEM 1 : OVERPROCESSING OF DOCUMENTS

WHY ANALYSISWhy overprocess documents? . For verification purposes

Why verify? . To proof-check work done

ACTIONThere should be a standard laid down procedure for processing documents

WHY ANALYSISwhy low efficiency? . Obsolete and limited number

why few and obsolete? . Growing employee population and technological evolution

why the oversight on growing population and . Failure to set up standard evolving technology? guide for employee:machine ratio

Why are there no standards? . Current company policies not addressing the problem

ACTIONThe company policy should have proper and clear guidelines on machine and employee:machine ratio

The obsolete should be phased out

PROBLEM 3 : FILLING SYSTEM -SEARCHING FOR DOCUMENTS

WHY ANALYSISWhy does the filling system cause a lot of muda? . Cabinets are not labeled and not systematic

Why not labelled and non-systematic? . Lack of initiatives to do so

ACTIONMake the filling system systematic (in-order) and duly labelled

Analysis of problem – Why - Why Analysis



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Results


Thank You . . . . . . . .

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