Case Study:  Lean Design - Customer/Supplier Claims Process

Situation and Objective

  • Shortage claims 3x rate of next highest customer
  • 50% of claims reported > 30 days from receipt
  • Reduce process cycle time
  • Reduce defects
  • Reduce rework

Approach

  • Assemble team with people who “do” the process
  • Process map the current state
  • Identify “non-value added steps” with the team
  • Design future state; document standard operating procedures
  • Establish process metrics
  • Roll out and monitor impact of changes

Results and benefits

  • Reduced claims 90%
  • Claim entry lead time decreased 76%
  • Claim lead time decreased 62%
  • No claims submitted beyond 30 days this year