Lead time reduction for a service company obj. 1 Shield Insurance Company takes ten days to make payments on insurance claims. Claims are processed through three departments: Data Input, Claims Audit, and Claims Adjustment. The three departments are on different floors, 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 could be reduced significantly?

Lean principles for a service company obj. 1 The management of Grill Rite Burger fast-food franchise wants to provide hamburgers quickly to customers. It has been using a process by which precooked hamburgers are prepared and placed under hot lamps. These hamburgers are then sold to customers.

In this process, every customer receives the same type of hamburger and dressing

(ketchup, onions, mustard). If a customer wants something different, then a “special order” must be cooked to the customer’s requirements. This requires the customer to wait several minutes, which often slows down the service line. Grill Rite has been receiving more and more special orders from customers, which has been slowing service down considerably.

a. Is the Grill Rite service delivery system best described as a push or pull system? Explain.

b. How might you use lean principles to provide customers quick service, yet still allow them to custom order their burgers?