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Lead time reduction for an insurance company Shield Insurance Company takes 10 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 100. Each batch of 100 claims moves through the three departments on a wheeled cart. Management is concerned about customer dissatisfaction caused by the long lead time for claim payments. How might this process be changed so that the lead time is reduced significantly?

BuyFind

Financial And Managerial Accounting

15th Edition
WARREN + 1 other
Publisher: Cengage Learning,
ISBN: 9781337902663
BuyFind

Financial And Managerial Accounting

15th Edition
WARREN + 1 other
Publisher: Cengage Learning,
ISBN: 9781337902663

Solutions

Chapter
Section
Chapter 27, Problem 2MAD
Textbook Problem

Lead time reduction for an insurance company

Shield Insurance Company takes 10 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 100. Each batch of 100 claims moves through the three departments on a wheeled cart. Management is concerned about customer dissatisfaction caused by the long lead time for claim payments.

How might this process be changed so that the lead time is reduced significantly?

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Chapter 27 Solutions

Financial And Managerial Accounting
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