Identify the attributes you would expect the claims processing Department at MICI to have once the new JIT system is in place
With the implementation of JIT system at the MICI, customer claim processing is expected to be processed in a faster way. As indicated in the case study, the JIT system is expected to clear the customer claims backlog in the company. Despite the fact that the company will be required to train its employees on how to manage this new system, the benefits this new system will bring to the company are more than the costs of installing and training employees. This new program will ensure quality services to the customers by holding the employees of the company responsible for the quality of their duties.
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The requirement by the new system to train employees will improve their skills and as a result, the quality of their work is expected to improve significantly. The main aim of installing the JIT system in the company as indicated in the case study is to improve efficiency in data handling. This will therefore ensure that processors are responsible for the accuracy of data in their particular departments. JIT system is expected to reduce the time taken by the company to process data from customers. It will streamline data handling process in the company, which in turn will win the confidence of customers (Schniderjans, 2002).
What will the restructured cell layout for claim processing in Figure 16.10 look like?
JIT system is meant to cut down the chain of processing customer claims by making the departments responsible to handle particular cases entirely. In this respect, the channel to be followed by the customers will be as indicated by the figure below:
What assumptions are you making about personnel and equipment in the new group technology cell layout?
The assumptions made in the new group technology cell layout are that the personnel will be in a position to handle different claims from individual customers entirely. It is also assumed that each personnel will be trained and equipped with the necessary equipments required to handle a particular category of customer claims. With the required materials and the expertise of handling these equipments, the channel formerly followed by customers before their claims are totally solved will bee reduced.
As indicated in the above new channel layout, customers claims will be handled in only one office. This is based on the assumption that each office will be adequately equipped and the personnel in that office will have the required skills to handle customers’ claims without necessarily having to refer them to other offices.
How will the new JIT oriented system benefit the MICI operation?
The aim of installing JIT system is to fasten processing of customer claims. In this respect, the new system will add value to customers of the company by ensuring that their claims are handed in within the required time. This will restore the reputation of the company and safe it from legal expenses, should customers sue the company as some of them are threatening to in the case study. The system will also lead to the training of employees, thus increasing their expertise and lead to quality service for the customers.
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After the system is fully operational, the company will be required to reduce the number of its employees, given the fact that customer claims will be handled entirely in one office. Generally, the system will make the operations of the company faster; reduce the number of employees required by the company and increase profits through increasing the company’s customers (Schniderjans, 2002).
Schniderjans, M. (2002). Topics in Just-in-Time Management: London; Prentice hall.