Homeguard 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 areprocessed 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?