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Once the processes have been identified, for each, further identify and note on the process master: The supplier of inputs to the process; Each input upon which the process depends; The major activities performed by the process participants that, when performed in sequence, lead to the output; The output s which result from performance of the activities; The customer who receives the output of the process; and Improving performance master thesis key metrics that indicate the effectiveness and efficiency of the process cycle time, error rates, delay, etc.
Prioritize processes We next determine which process esif improved, would have the greatest positive impact on the organization i. There are five steps involved in building the matrix, depicted on the following page: Success criteria are those measures, ranging from most tangible e.
In this case, the organization has determined that hit ratio, combined ratio and compliance are the three criteria that demonstrate it is performing according to its strategic plan.
Success criteria are then weighted relative to each other, using an index from 0. In our example, the organization has deemed new business to be a critical success factor.
As such, hit ratio 1. They are all important, however; this is simply a relative weighting. Determine score and rank. The resulting scores, which are the products of the relative weights times the anchors summed across each process, provide a ranking, based on the success criteria, that indicate which processes should be given improvement priority.
It should be noted that prioritizing processes in this manner is purely for decision support.
Obvious needs should be addressed first and must trump the outcome of this type of prioritization analysis. As such, input from the following individuals should be solicited throughout any process improvement initiative: The executive sponsor is typically a member of senior management who endorses the process improvement initiative.
The process supplier is the source of input to the process being evaluated. The process owner is the person responsible for the quantity, quality and timeliness of the ultimate output from the process. Process participants are those whose daily work impacts the process. At least one representative from each major process activity should participate on the process team.
The process consumer is the recipient of the process output. Without assembling a team comprised of each of these members — even if some only have peripheral involvement — you are almost certain to face resistance in the improvement effort.
Create process models There are many business reasons for which an insurance company should model its processes. A well-developed process model renders the departments, resources, activities, third parties, handoffs and decision points graphically; a process deconstructed in this manner expedites analysis and problem identification.
Rendering the process in this manner also gives a sense of timing with respect to the flow of the process, as activities flow downstream to the right as time passes and the process is completed.
I like to keep these diagrams simple, and use only a few mapping symbols: Note that activities in the figure can span multiple departments or organizations, indicating that responsibility for completing the activity is shared.
In addition, the functional title of the resource s charged with performing each activity is included above each activity rectangle, and, where needed for clarification, brief narratives are provided below both activities and decision points to describe the step in greater detail.
In reviewing the process model, our intention is to identify as many non-value-adding NVA activities — those activities that add nothing of value to the ultimate consumer of the process output — as possible.
Workflow that navigates between multiple staff members in multiple departments requiring multiple approvals is a major impediment to efficiency. Review the process model to see whether some of those handoffs can be eliminated. A concept known as rolled throughput yield RTY exemplifies this best: When something has to be sent back into the process because of defect or error, it contributes to bottlenecking and decreases RTY.Dr.
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