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Logistics Issues - Health Insurance Services Company

Essay by   •  June 25, 2011  •  Case Study  •  401 Words (2 Pages)  •  2,112 Views

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1st Example

Reduce Costs

The Situation:

A health insurance services company found itself with an uncompetitive cost structure, poor data integrity and declining service levels. The Highland Group was asked to assist them in reducing the cost of their operations and turn-around time.

The Driver Goal:

* Reduce the cost of operations by 30% while eliminating significant backlogs of work

* Reduce the turn-around time of operational activities by 50% to meet service level targets

* Update 90% of database information annually

Actions Taken:

* Designed and implemented workforce management systems, work standards, project management tools, and management reporting across all operational departments

* Conducted employee skill assessments and developed training plans to increase competency levels

* Streamlined processes to reduce non-value added activities and eliminate cross-departmental redundancy and confusion

* Developed and implemented new procedures and electronic mechanisms to increase automation of processing from 5% to over 25%

* Changed organizational structures to match span-of-control and skill-set requirements

* Implemented floor management tools and supervisory behavioral models to assist in productivity and quality improvements

* Developed data management procedural and system changes to reduce top data errors and provide more frequent data update capabilities

* Implemented a project prioritization, rationalization, and resource management process for the IT organization

The Results:

* Reduced operating costs by 30%

* Reduced backlogs by 80-90%.

* Reduced turn-around times on operational activities by 50-90%

* Improved quality of initial data loads to 98% or above

* Completed major projects on-target and with fewer resources

2nd example

Ontime Delivery

The Situation:

Major manufacturer of vitamins, supplements, nutritional products, and over the counter pharmaceuticals lost 40 million dollars in sales and was in danger of losing several major retain customers due to



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