The Lean Service Machine

Case Study :Jefferson Pilot Financial

Team: Appurva Rekhi Ritesh Seth Aditi Goel Ekta Srivastava Rohan Kapoor Parul Arora

Required Improvements at JPF before Lean..

Increase turnaround speed and predictability Enhance customer focus Reduce complexity Increase quality/eliminate errors Eliminate cost differentiation

Key principles of LEAN in JPF

Flow processing : Speed applications by removing kinks Load balancing : Make sure individuals processing forms shoulder comparable burdens Work leveling : Synchronize process-step workloads with incoming demand Standard operations : Establish best practices in cells and then spread through entire organization Segregating complexity :Form separate channels for complicated tasks so that simple ones are not held up

How the transformation took place..

Segregating Complexity :
Separating clean cases from complex cases reduced Fixed Annuities turnaround time by 80%. Teaching Customer Service Reps how to prioritize work and evaluating their performance on that basis improved all call center service metrics.

Load Leveling :
Flexible commission payments may revolutionalize relationship with agent. Pulling Demand : By appointing agents only when they submit business we reduced set up time waste (45/min per set-up) and associated annual fees of $100 per agent.

Visible Metrics :
Whiteboards, automated databases, and scorecards now used throughout organization Individuals and teams see the impact of their contributions

Achievement Metric APS Turnaround time Non-APS turnaround time Total Labor cost for all applications Reissues due to errors

Long Term Goal Reduce by 60%

Result

Reduced by 70%

Reduce by 84%

Reduced by 84%

Reduce by 28%

Reduced by 26%

Reduce by 40%

Reduced by 40%

Situation where Lean can be applied..

The principles of lean manufacturing can work well in service delivery to any of the offshore projects outsourced in the IT service industry Example : Royal Mail Group at CSC

Transformation process..
Eliminate waste in routine, repeatable activities
The daily status reports and service tickets are received ,logged and disseminated by different teams. The process could be streamlined so as to not waste time on redundant processes daily .

Placing linked processes near one another

The data transfer activities take place between various onsite-offsite teams. The process could be completely placed at offsite reducing cost and maintenance needs for the project.

Standardizing Procedures
Repeated procedures should be documented and standardized properly so that they can have historical storage.

 Using communication effectively

Effectively managing communications may increase efficiency in the project. Implementing guidelines as to whom to copy on emails can eliminate waste, by culling unnecessary time spend reading irrelevant communications time that could be better spent serving clients.

Posting Performance Results

Positive results through RMG communications and newsletter can be posted to boost employee morale.