Client

MEDICAL INSURANCE SERVICES ORGANIZATION

Objectives

Reduce 6-week billing cycle time in a medical claims processing business unit that processes 1.5 million claims per year with 12 personnel

Solution

We selected an initial application area, creating current and future state maps to identify process wastes and opportunities for improvement.  This suggested a 3-tier approach: Phase 1 – reduce cycle time from 6 to 3 weeks; Phase 2 – reduce cycle time from 3 weeks to 1 week, transferring knowledge & lean system thinking methods sufficient to create self-sustaining continuous improvement curve; Phase 3 – move from 1 week to 3 days, with heavy reliance on in-house personnel to drive movement

The solutions deployed were:

  • Work cell design
  • Work station design
  • Work flow rerouting
  • Job task redesign & work responsibility reallocation

Outcomes

  • Increased throughput from 6 weeks to 3 days
  • Freed up 20% of individual daily capacity by reconfiguring work area

Return on Investment

Significant but confidential