Homeguard Insurance Company takes ten days to make payments oninsurance claims. Claims are processed through threedepartments: Data Input, Claims Audit, and ClaimsAdjustment. The three departments are on different floors,approximately one hour apart from each other. Claims areprocessed in batches of 100. Each batch of 100 claims movesthrough the three departments on a wheeled cart. Management isconcerned about customer dissatisfaction caused by the long leadtime for claim payments.
How might this process be changed so that the lead time could be reduced significantly?