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Guarantee Fund
Mission: to provide a sufficient degree of
protection for employees of bankrupt companies
by payment of their outstanding claims
Staff:
9 (since 1 Sept 2010)
Distributed:
~ 72 mln. Lt. / 21 mln EUR in 2011
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Crisis came
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Influence of crisis
Applications
Approved applications
1053
342
2001
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2009
8th International Conference of the TOC Practitioners Alliance - TOCPA
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Why ?
Applications lead time affects peoples fates
Stats on the project start
date:
Average application
lead time: 18 months
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What to change?
Too long application lead time
The longest application examination and
approval term:
3 years (!!!)
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What do we want ?
Increase approved applications amount to
100 per month (was 28 per month on
average in 2009)
Keep existing high accuracy (quality) of
approved applications
under the following conditions:
no investments
the same staff (2 times less than before the
reorganization) with the same competencies
no changes in legislation
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Core Dilemma
B
Ensure applications
will be without error
D
Examine
applications
in very detail
C
Ensure the shortest
lead time possible
D1
Examine
applications
without attention to
details
A
Run the
Guarantee
Fund efficiently
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How ?
1. Focus on applications flow
2. Key measurement: number of applications
approved (GF: per month; Application manager:
per day)
3. We asked ourselves:
Guarantee
Fund
3-21 days
300 days
7 days
Application
registration
Application
examination
Preparation for GF
Council
meeting
11 days
Decision by
GF Council
to make
payments
Decision
record
36 days
1-2
Preparation
and signing
of
agreement
Application
submitted
ready for
payments
30 days
Bankruptcy
administrator
Application
submitted
Additional
documents
Payments to
employees
Corrections
392 days
Ministry
of Finance
Payment to
Bankruptcy
administrator
(bankrupt
company)
2 days
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Guarantee
Fund
1 day
3-21 days
45 days
300 days
1 day
7
Application
registration
Application
examination
Preparation for GF
Council
meeting
3 days
11 days
Decision by
GF Council
to make
payments
Decision
record
1 day
36 days
1 day
1-2
Preparation
and signing
of
agreement
Application
submitted
ready for
payments
9 days
30 days
Bankruptcy
administrator
Application
submitted
Additional
documents
Payments to
employees
Corrections
392 days
Ministry
of Finance
63 days
Payment to
Bankruptcy
administrator
(bankrupt
company)
2 days
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Before changes
Month
Employees
Applications approved
received
per AM
payments
Applications
approved
Staff
Money
distributed,
mln. LT
01/09
0.5
0.01
02/09
27
6.8
344
1.1
03/09
32
8.0
537
1.6
04/09
27
6.8
442
1.8
05/09
20
5.0
314
1.0
06/09
13
3.3
100
0.6
07/09
29
7.3
730
2.4
08/09
18
4.5
184
0.5
09/09
39
7.8
518
1.6
10/09
39
7.8
653
2.0
11/09
38
7.6
962
3.4
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12/09
5
58
2010 m.
Month
Applications
approved
Staff
Applications approved
per AM
Employees
received
payments
Money
distributed,
mln. LT
01/10
58
11.6
1113
3.2
02/10
54
6.8
1889
3.0
03/10
52
6.5
813
2.2
04/10
71
8.9
977
3.4
05/10
111
12.3
1503
5.4
06/10
10
2002
6.7
07/10
10
121
Start of the changes!12.1
12.0
120
2500
8.1
08/10
10
225
22.5
4544
14.2
09/10
74
18.5
1203
3.6
10/10
4,5
92
20.4
1737
6.3
11/10
4,5
115
25.6
2158
6.4
12/10
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Goal of 100
applications
achieved
! Practitioners Alliance - TOCPA
8th International
Conference
of the TOC
Results 2011 m.
Applications
approved
Month Staff
Applications approved
per AM
Employees
received
payments
Money
distributed,
mln. LT
01/11
4,5
96
21.3
1696
5.2
02/11
4,5
22.2
4,5
22.7
1764
2103
5.1
03/11
100
102
04/11
4,5
130
28.9
1814
5.2
05/11
4,5
132
29.3
2732
6.9
06/11
4,5
144
32.0
2928
8.1
07/11
4,5
175
38.9
2454
5.8
08/11
4,5
194
43.1
2787
6.2
09/11
4,5
145
32.2
1779
4.3
10/11
4,5
212
47.1
2326
5.9
11/11
4,5
212
47.1
2878
6.7
12/11
4,5
183
40.7
2839
6.7
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Record !
6.3
Results
Start of the project
2000
1800
1600
1400
1200
1000
800
600
Bankrupts in Lithuania
Applications received
Applications approved
400
200
0
If we work old way
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Progress
1825
Applications
Approved applications
1128
2001
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2009
2011
Applications
Approved applications
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4,5 4,5
Guarantee Fund
case story on TOCICO 2012
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Happy end ?
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8th
Houston,
we have a problem!
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8th
Problems
Cash-flow disbalance
Payouts increase 3-4 times
Inflow decreased by 10%
Significant drop in funds
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8th
Courts system
Major reasons for work load increase for
courts:
Increase in amount of people
Increase in juridical literacy of citizens
Lead-time of court cases
Nerius Jasinavicius
nerius@toc.lt
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Alliance
TOCPA
8th8 International
Conference
of the
TOC Practitioners
- TOCPA