Press release – 2012-04-27
Payments from the Guarantee Fund to reach employees of the bankrupt companies five times faster
The fivefold increased working efficiency of the Guarantee Fund administrator is acknowledged one of the best success stories of recent years among the projects implemented in the public sector. With improved quality of the working processes and no increase in the number of staff members, no extra funding and negative effects on the checking quality the success story of the Guarantee Fund has received international response and recognition – the Ministry of Economy of the Republic of Lithuania has been invited to present the success of the project in the TOCICO Conference in Chicago.
TOCICO is a Theory of Constrains International Certification Organisation which unites business management TOC experts throughout the world. TOC is a widely recognized business management methodology that helps considerably improve efficiency and profitability of companies in a short period of time.
“Now the staff members of the Guarantee Fund deal with processing of applications of the bankrupt companies much more quickly and efficiently than before. This positive change was achieved after reviewing and optimizing the procedures which relate to processing of applications and award of payments, “– said Minister of Economy Rimantas Žylius.
In the process of efficiency improvement of the Guarantee Fund activities, the first step was to clearly identify the objective to be pursed, namely, to award payments to the employees of the bankrupt companies with no delay, which actually meant speeding up of the application processing with no adverse effects on quality. Skipping from one subject to another was also desisted from which helped accelerate the process; the additionally required documents are now requested in the phase of registration of an application rather than in the very initial phase of the processing; in addition, return of applications for specification in case of a several cent error has also been refused, the submission and processing of an application has been made public and the procedure of concluding contracts for award of payments has been simplified.
According to Minister Žylius, now one staff member is approximately processing 34 applications per month while this same number was dealt with by 3 to 5 staff members in previous years. This is an excellent example of how efficiently a public institution can work with introducing fundamental reforms in its work processes.
With the increased efficiency in the work processes the term for payment award to the employees of the bankrupt companies has been reduced. With accumulated unprocessed applications, 22 thousand of employees of the bankrupt companies kept waiting for their payments for about 18 months in 2010. Now we have no unprocessed applications and the payments receive the employees of the bankrupt companies in some 3 to 4 months from the date of the application submission.
With TOC principle which, with the help of UAB TOC sprendimai (TOC Solutions), were applied in the Guarantee Fund, the duration of application processing was considerably reduced which resulted in fivefold higher number of processed applications, which in turn meant that the money from the Guarantee Fund would go to four times higher number of employees of the bankrupt companies. Compare the 342 applications processed and payments awarded from the Guarantee Fund to 6 579 employees in 2009 to even 1 825 processed applications and payments awarded to even 28 100 employees of the bankrupt companies in 2011.
The Guarantee Fund efficiency improvement project will be presented at the International TOCICO Conference in Chicago on 3 – 6 June along with other success stories of companies like Boeing, Teledyne Dalsa and others.
This Friday, 27 April, Minister of Economy Rimantas Žylius met with TOCICO Chairman, former Coca-Cola Bottlers President in Brazil Bill Taylor, TOCICO General Manager, Vice President of Peoplesoft (USA) Carol A. Ptak and Manager of the leading Netherlands’- based company Blue Jonah Patrick Hoefsmit.
More detailed information on the activities of the administrator of the Guarantee Fund is available in the 2011 Performance Report of the Guarantee Fund on www.bankrotodep.lt, column Guarantee Fund, performance reports.
As of 1 September 2010, the Enterprise Bankruptcy Management Department under the Ministry of Economy is performing the functions of the administrator of the Guarantee Fund.
Source Article: https://www.ukmin.lt/web/en/news/press_releases/payments_from_the_guarantee_fund_to_reach_employees_of_the_bankrupt_companies_five_times_faster_