Remove “muda” (activities that add no value for the customer and which should be eliminated) from the project development and applications maintenance.
“Using Lean IT to eliminate activities that add no value for the customer.”
MAPFRE is a global insurance company with a presence in 49 countries across all five continents. MAPFRE is is market leader in the insurance market in Spain and the leading multinational insurance group in Latin America, and one of the top 20 Automobile insurance companies in the United States. Altogether, MAPFRE has more than 27 million clients, employs 38,000 people, has a global network of 5,525 offices and works with about 80,000 brokers. In 2016, the Group reported total revenues of 26.367 billion euros and net profits of 845 million euros.
A few years back, MAPFRE started to study Lean IT and how Lean philosophy could transform project development and the maintenance of corporate applications in order to increase efficiency and deliver added value to customers. A pilot project was launched the same year. The MAPFRE team focused on searching for and detecting “muda”, a Japanese word used in Lean to refer to types of waste; in other words, activities that add no value for the customer and which should therefore be eliminated or minimized.
Quint was contracted to assist with the execution of the pilot project to implement Lean IT principles. This implementation demanded a radical change in attitude so that the leading role in the continuous improvement process is transferred to the people who perform the day-to-day operations. The pilot showed clear benefits. Delivery time was reduced by approximately 60%, and the level of efficiency rose from 79% to 97%. Following the success of this first pilot project, MAPFRE decided to expand the scope of the first wave to include three more departments. In this second phase, the key success factor was the preparation of a coordinated and comprehensive global transformation plan.
More than 200 staff members were involved in the transformation process and they have changed the way in which they work as a team. They have new tools and have been trained to use them in their daily activities to simplify their tasks, to stimulate coordination among the team members and to ensure that deadlines are met. The implementation of Lean has injected energy and optimism into the company. Greater transparency, better communication and higher energy at daily meetings are visible effects of the new Lean attitude that is gradually spreading and producing tangible benefits.
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