Lesson 2: Core Concepts
About This Lesson
Define Standard Work, learn the three elements, and distinguish from protocols.
Video 1: What is Value Stream Mapping?
1 minComplete the definition of Value Stream Mapping:
Test your understanding of the core concept.
Creating both a Current State and Future State map
VSM projects always produce two maps: how work flows today, and how it should flow after improvements.
Video 2: The Metrics That Matter
1 minCalculate the efficiency ratio:
A claim takes 30 days (lead time) with 6 hours of actual work (processing time).
Most claims operations have efficiency ratios between 1-2%. This means 98-99% of lead time is waiting, not working. Best-in-class operations reach 8-10%.
Source: Insurance Industry BenchmarksVideo 3: The 8 Wastes in Claims
2 minIdentify the Waste Type
Match each claims scenario to the correct waste category.
A claim sits in the assignment queue for 5 days before an adjuster is available.
An estimate is returned because the coverage code was entered incorrectly.
Three managers review and approve every claim over $5,000, even routine ones.
An adjuster logs into 4 different systems to gather information for one claim.
Explore: Identifying Waste in Claims Operations
Click each tab to see different perspectives (1/3 viewed)
How do we spot waste in claims operations?
Use process observation, timing studies, and queue analysis.
- Count handoffs between departments
- Measure wait times at each step
- Track rework rates and error frequencies
- The VSM makes waste visible through data boxes and inventory triangles
Technical analysis reveals the data that drives improvement decisions.
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