Robust Production Management (RPM) Module 11: Large Insurance Dept. Case Study

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This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go here: http://flevy.com/browse/business-document/robust-production-management-rpm-module-11-large-insurance-deptcase-study-469 We're often asked if Robust Production Management (RPM) concepts, tools and techniques can be applied in non-manufacturing settings - and the answer is an emphatic "Yes!" This case study represents the multi-million dollar results achieved by using RPM in a large health insurance department - not over years, but within weeks. The hard-dollar operational savings realized by the company enabled it to remain "open for business" and independent at a critical time when competitors were being purchased by other companies, or were going out of business entirely. "Large Insurance Dept. Case Study" is the eleventh module in the Metrilogics Robust Production Management (RPM) training series - more on the way.

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Copyright © 2005 Metrilogics, LLC. All rights reserved.
Robust Production Management
Metrilogics
Front-line controls for bottom-line savings.
TM
SM
Module 11:
Large Insurance Dept. Case Study
By Lance Latham
Senior Managing Partner

The “Before” Baseline Efficiency Distribution
Direct Team Efficiency Range = 5% - 95%
=
Copyright © 2005 Metrilogics, LLC. All rights reserved.
Metrilogics
TM
2
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Baseline Non-Work Category Breakdown
Performance
areas to
target for
majority of
improvement
savings
opportunities
=
Copyright © 2005 Metrilogics, LLC. All rights reserved.
Metrilogics
TM
5
This document is a partial preview. Full document download can be found on Flevy:
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Quality Work
Annual $ Savings Targets vs. Savings Actually Achieved
Failed Work
Unearned Time
Lost Time
Time Off
Category
Client Management
Goal
Targeted Annual
Savings
$975,000
$550,000
$260,000
$195,000
Annual Savings
Actually Achieved
$1,098,038
$614,043
$290,516
$208,553
TOTALS:
$1,890,000
= 25% Savings
$1,980,000
= 26% Savings
$2,215,300
= 29% Savings
$4,150
Copyright © 2005 Metrilogics, LLC. All rights reserved.
Metrilogics
TM
8
This document is a partial preview. Full document download can be found on Flevy:
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