What will the re-structured cell layout for claim processing in Figure 16.9 look like once a JIT system is implemented? Draw it.

CHAPTER 16 JIT TPS, AND LEAN OPERATIONS 645 many minutes of setup time hoola he have her plant man for regarding this component? Given the following information about a product at 16 chid Gibson's firm, what is the appropriate setup time? Annual demand - 39.000 units Daily demand - 150 units Daily production - 1.000 units Desired lot size 150 units Holding cost per unit per year = SIO Setup labor cost per hour $40 18.10 Rick Wing has a repetitive manufacturing plant producing automobile steering wheels. Use the following data to prepare for a reduced to be. The firm we work year of 305 days for eg wheel 0600 By Trang 100 dinhoud Desde hoofddion 20 cost per un part 110 ) What is the setup cost, based on the desired for se b) What is the setup time, based on S40 per hour setup labor! Refer to MOMLab for these additional homework problem: 16.11- 16.12 CASE STUDIES Mutual Insurance Company of lowa Stutual Insurance Company of lowa (MIC) has a major insurance uffice facility located in Des Moines, lowo, The Des Moines office is responsible for processing all of MICI'Snurance claims for the entite nation. The company's sales have experienced rapid growth dating the last year, and as expected record levels in claims fol. wed. Over 2.500 forms for claims a day are now flowing into the ffice for processing. Unfortunately, lower than 2,500 forms a day we Blowing out. The total time to process a claim, from the time it utives to the time a check is mailed, has increased from 10 days to 10 weeks. As a result, some customers are threatening legal action Sally Chok the manager of Claims Processing, is particularly distressed, as the Inows that a claim seldom requires more than 3 hours of actual wa Linder the current administrative procedures, human resources limitations, and facility constraints, there appear to be no casy fixes fe the problem. But clearly something must be done, as the work Lad has overwhelmed the existing system MICI management wants agressive, but economical, action them to fix the problem. Ms. Cook has decided to try a JIT approach to claim processing. With support from her bosses, and as a tempo Taryfis. Cook has brought in part-time personnel from MICI sales Brons across the country to help. They are to work down the claims backlog while a new JIT system is installed Meanwhile, Claims Processing managers and employees are to be trained in IT principles. With UIT principles firmly in mind, maapers will redesign jobs to move responsibilities for quality con ww activities to each employee, holding them responsible for quality work and any necessary corrections Cook will also initiate worker- training programs that explain the entire claim processing flow, as well as provide comprehensive training on each step in the process Data entry skills will also be taught to both employees and managers Is effort to fix responsibility for data accuracy on the processor taller than on data entry clerks. Additionally, cross-training will be tmphusened to enable workers within departments to process a vari ty of customer claim applications in their entirety Cook and her supervisors are also reexamining the insurance and claim forms currently in use. They want to see if standardiza- line of forms will cut processing time, reduce data entry time, and cut They hope the changes will also save training time. Making changes in work methods and worker skills leads logically to a moed for change in the layout of the Claims Processing Department. This potential change represents a major move from the departmental tay out of the past and will be a costly step. To help ensure the successful implementation of this phase of the changeover, Cook established a team made up of supervisors, employees, and an outside office layout consultant. She also had the team visit the Kawasaki motorcycle plant in Lincoln, Nebraska, to observe their use of work cells to aid JIT The team concluded that a change in the office facilities was necessary to successfully implement and integrate IT concepts at MICI. The team believes it should revise the layout of the operation and work methods to being them in line with group technology cell layouts. An example of the current departmental layout and claim processing flow pattern is presented in Figure 16.9. con page 646) As can be seen in this figure, customer claims arrive for processing at the facility and flow through a series of offices and departments to eventually complete the claim process. Although the arrangement of the offices and workers in Figure 16:9 is typical, the entire facil ity actually operates 20 additional flows each consisting of the same three departments. However, not all of the 20 flows are configured the same. The number of employees, for example, varies depending on the claim form requirements arger claims have to be approved by more people). So while all forms must pass through the same three departments (Customer Claim Entry. Accounting, and Customer Cinim Approval), the number of workers for each claim may vary from two to four. For this reason, the MICI facility currently main- tains a staff of over 180 office workers just to process and route claims. All these people work for Ms. Cook. Discussion Questions 1. Identify the attributes you would expect the Claims Processing Department at MICI to have once the new JIT system is in place 2. What will the restructured cell layout for claim processing in Figure 16.9 look like? Draw it 3. What assumptions are you making about personnel and equipment in the new group technology cell layout 4. How will the new JITonented system benefit the MICI operation Explain Source: Adapted from Mare Schmiederjans, Tipic in it-Time Matement, pp. 283-285. Reprinted by permission of Pearson Education, Inc Lipper Saddle River, N. kin-process HP TouchSmul 646 PART 3 MANAGING OPERATIONS Routing Figure 16.9 Claims Processing Department Layout at Mutual Insurance Company of lowa Worker 5 office Worker office Routing Worker 1 office Worker 2 office Customer Claim Approval Department Customer Claim Entry Department Routing Routin Routing Routing Customer claim arrives for processing Accounting Department Customer claim processe and notice or check sent to customer Worker 3 office Worker 4 office Routing JIT at Arnold Palmer Hospital Video Case Retor