Analysis and Redesign of an Enterprise Process

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Analysis and Redesign of an Enterprise Process
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Zyco Insurance

• Storyline and Processing Scope

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Process Redesign Targets

• Goals
• Enhance customer service
• Achieve more efficient claims processing for all
  partners
• Reduce financial/fraud exposure for all partners

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Process Redesign Targets

• Process/Performance Targets
• Reduce cycle time for customer
• Average cycle time
• Min / Max cycle time
• Cost reduction due to decrease in cycle time
• Reduce costs thru reduced fraud exposure
• of fraud detection
• Cost reduction due to fraud detection
• Reduce costs for partners agents and glass shops
• Time/cost savings with new process for agents and
  glass shops

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Process Redesign Targets

• Binding Management Decisions
• Maintain industry standards for fraud/financial
  exposure
• Use IT to reduce time/cost and fraud
• Must be able to handle crisis
• Scoping
• Process boundaries
• Figure on pg. 142

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Modeling the As-Is Baseline Process

• Model walk-thru

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Analysis and Diagnosis As-is

• Identifying Process Problems thru Modeling
• Process Analysis Thru Cases
• Individual Case Analysis
• Weighted Average Analysis
• Claims processed
• Most freq occurring Cases
• Least-cost Case
• Claims denied

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Analysis and redesign To-be

• Restructuring and reconfiguring process
• 1 Lose Wait Squeeze out waiting time in process
  links
• 2 Orchestrate Let the swiftest and ablest
  enterprise execute
• 3 Mass-Customize Flex process for any time,
  place or way
• 4 Synchronize Synchronize the physical and
  virtual parts of the process

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Analysis and redesign To-be

• Changing information flows around the process
• 5 Digitize and propagate Capture information
  digitally at the source and propagate it
• 6 Vitrify Provide in-process visibility with
  fresher and richer information
• 7 Sensitize Fit with vigilant sensors and
  feedback loops to prompt action

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Analysis and redesign To-be

• Changing knowledge management around the process
• 8 Analyze and Synthesize Augment interactive
  analysis and synthesis
• 9 Collect, Connect, Create Grow knowledge
  around process thru all who touch it
• 10 Personalize Make process intimate with
  references/habits of participants

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Zyco
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Redesign Initiatives

• Windshield glass repair call center
• Toll-free number
• Extended hours
• Work control number
• Shared by Zyco, Agent, and Shop
• List of preferred glass shops
• Insured could go directly to one of these without
  having to call Zyco or their insurance agent
• Zyco website
• Customer can verify coverage and get specific
  info on how to proceed

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Redesign Initiatives

• Shared DB for Partner Access
• Secure
• Accessible by Zyco, Agents and Preferred Glass
  Shops
• EDI for doc interchange
• Using the Internet
• Electronic audit
• All inquires using the website or shared DB are
  captured in an audit file

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The To-be Process

• Walk-thru
• Analysis
• Claims processed
• Most frequent Case
• Least-cost Case
• Claims denied

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Comparing As-Is and To-Be

• Table 6-6

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What-if Scenarios Simulation

• Step 1 Defining questions for simulation
  analysis
• Process Capacity Analysis
• What is the capacity of the process?
• Currently about 1,000 claims per week
• What if that doubled?
• Bottleneck Analysis
• Where are the bottlenecks?
• What processes have the largest number of items
  in the queue?
• Which spot has the most congestion?
• What does changing the upstream and downstream
  processes do?
• Unusual / Extreme events?

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Step 2 Setting up Simulation Parameters

• General Conditions
• Random number seed
• Simulation start times
• Calendar Choices
• Duration of simulation
• Working hours
• Number and Rate of Jobs
• Interval
• Can depend on time of day, day of week, month,
  etc.

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Step 2 Setting up Simulation Parameters

• Resource Requirements
• Resources assigned to Tasks
• Working duration
• Distribution
• Concurrency
• Resource Allocation
• Assigning of resources to a role
• Scenario 1 (Disaster)
• Table 6-7
• Scenario 2 (Growth)
• Table 6-8

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Step 3 Running Simulation and Examining Results

• Looking at animation
• Simulation Output Tables
• Jobs Table
• Resources Table
• Activities Table
• Queues Table