Daily Kaizen

For the last couple of weeks I have been collecting data on an administrative process in our health plan that is supported by around 650 employees. Currently, the process supports eight products, many of which are very different, but all of which we are attempting to support on the same IT platform and with the same processes. Basically, it is the equivalent of Toyota trying to make forklifts on the same production line as a Camry. The result is that over time the process has grown increasingly more complex, and we have had to build in more and more checking steps.

This process is not un-typical, and I believe that most health plans are struggling with similar challenges. This is because over the past decade the market place has demanded a solution to the rising cost of healthcare. Health plans have tried to answer this demand by developing an array of new products. Once one health plan comes to the market with a new plan others quickly rush to follow the leader. The problem, most health plans have not organized around value streams, thus operations is always one step behind product development.

Walking the process it is incredible how good a job we are doing given the speed of change. Our quality and cycle times are better then almost anyone. Yet, as a Lean consultant I see an incredible opportunity. My task is to begin to reorganize the processes into production lines that handle like work. We will then expand upstream into our product development areas creating value streams. It is exciting and transformational.

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