Manufacturing sector is known for the total quality management effort that helped increase productivity and operational efficiency and improve the quality of finished products. Not every service organization has been successful in imbibing these quality philosophies that have been successful in manufacturing. Services are people dependent and this adds to the complexity while implementing quality philosophies that have been tried and tested in manufacturing. The principles of lean manufacturing initially adopted by automaker Toyota have been imbibed by manufacturing organizations across the world. Researchers have explored the application of lean in services. Insurance is one service sector which has grown by leaps and bounds in the last few years following the opening up of the insurance sector in India. However, there is a vast difference between the overall organizational productivity observed in public sector and private sector insurance companies. The private insurers adopt a more professional approach and they have taken maximum mileage out of the market-based pricing mechanism approved by insurance regulator in India, namely IRDA. The situation is such that national insurance companies can no longer sustain with their low levels of productivity in a fiercely competitive market. This case documents the experiences of an insurance company called Achmea that implemented lean principles and achieved operational efficiency. This can be a good starting point for insurance companies in India to adopt lean. Even though private insurance companies are backed by processes and a professional work atmosphere, they too can adopt lean to achieve greater productivity and improved functional excellence.
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