An initial pre-diagnostic study identified that based on the current inventory, average correspondence cycle time and 3.5 FTE resources dedicated to addressing customer correspondence, a 1 day TAT was not achievable.
For a 1 day TAT to be achieved, inventory levels would need to be reduced to zero on a daily basis and assuming status quo average cycle times, a total of 11 FTE resources would be required to address the daily volume of correspondence.
The client recognised the need to increase the number of FTE resources dedicated to the correspondence team – however wanted a cost avoidance strategy with a focus on volume reduction (rework reduction and leverage off end to end solutions) and cycle time reduction (optimising the process bottleneck and reducing non value add tasks).
Day in the Life of Studies were used to measure the productivity of the correspondence team. This approach enabled first hand observations of the occurrences and causes of rework, identification and impact of the correspondence process speed bottleneck, quantifiable measurements of the time spent on non value added tasks, as well as the collection of data required to calculated improvement opportunity.
Development of an implementation road map that will reduce the 11 FTEs required to achieve a 1 day TAT to 5.5 FTE – a cost avoidance of $365,000.
A focus on reducing cycle time by utilising webforms, pre-prepared responses and load levelling.
Reducing process waste by optimising end to end solutions, webforms ceasing non value add correspondence tasks and non customer focused tasks