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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.

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.

The process at Shield Insurance Company for making payments on claims could be reduced by implementing all of the following measures except:

a. Shield should adopt just-in-time principles in its claims payment operations.
b. Shield could design claims payment "cells" that are organized around different types of insurance products or customers rather than processes.
c. Shield should implement a "pull" scheduling process.
d. Shield should adopt electronic forms rather than paper forms.
e. Shield should implement a "push" scheduling process.

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