Process MappingContinue

Management of service
Operations

Improving Business Processes:

Guidelines
Attack each delay

What causes it?

How long is it?
How could we reduce its impact?

Examine each decision point

Is this a real decision or just a checking

activity?
If the latter, can we automate or eliminate
it?

Dematerialize documentation.
Can we do it electronically?
Eliminate multiple copies?
2008 Pearson Prentice Hall -- Share a common
Introduction database?
to Operations and
Supply Chain Management, 2/e --Bozarth and Handfield, ISBN:

Chapter 3, Slide 2

More Guidelines
Look for loops
Why is this loop here?
Would we need to loop if we didnt have any
failures in quality, planning, etc?

Process steps
What is the value of this activity, relative to its
cost?
Is this a necessary activity (support or
developmental?), or something else?
2008 Pearson Prentice Hall --Introduction to Operations and
Supply Chain Management, 2/e --Bozarth and Handfield, ISBN:

Chapter 3, Slide 3

Example 1 Claims Handling

in a Large Insurance Company

Pilot project claims handling for replacement of automobile

glass
Springboard for later, more ambitious redesign efforts
Set up procedure

1. The CEO appoints an executive sponsor to lead the

project
2. Team members are handpicked by the CEO and the
sponsor
3. The team creates a flowchart of the existing process

Under the existing process the client may have to wait 1-2
weeks before being able to replace the damaged auto glass
Goal A radical overhaul and improvement of the process to
shorten the client waiting time

Example 1

Flowchart of the existing claims

process
Request additional information
Pay
Notify agent
Client

Give instructions
File claim

Local
independent
agent

Forward
claim

Claims
processing
center

Request quote
Provide quote
Pay

Approved
glass
vendor

Example 1

Explanation of existing claims

process
1.

2.

3.

4.

5.

Client notifies a local agent that she wishes to file a claim. She
is given a claims form and is told to obtain a cost estimate from
a local glass vendor.
When the claims form is completed the local agent verifies the
information and forwards the claim to a regional processing
center.
The processing center logs the date and time of the claims
arrival. The data is entered into a computer-based system (for
record keeping only) by a clerk. The claim is then placed in a
hard copy file and passed on to a claims representative.
a) If the claims representative is satisfied with the claim it is
passed along to several others in the processing chain and
eventually a check is issued and sent to the client.
b) If there are problems with the claim the representative mails
it back to the client for necessary corrections.
When the client receives the check she can go to the local glass
6
vendor and replace the glass.

Example 1

New Design Recommended by

the Team
Call in claim
Client

Claims
processing
center

Notify

Schedule repair

Pay

Approved
glass
vendor