Applying Lean-Engineering Principles to Agency Business Processes to Improve Collections Associated with Infrastructure Damaged by Motor Vehicle Crashes

Abstract

State and local agencies have an enormous investment in roadway infrastructure that is routinely damaged by motor vehicle crashes and must be repaired in a timely manner. Recovering the costs associated with repairing damage to state property (DSP) from responsible parties can be difficult if careful business processes are not followed by state and local agencies. In 2009, the Indiana Department of Transportation (DOT) initiated a review of its DSP business processes; a survey of peer state DSP business processes was also conducted. Subsequently, the Indiana DOT implemented a series of improvements that have increased the amount invoiced for repair of damaged roadway infrastructure from $1.4 million in FY 2010 to $8.3 million in FY 2016. During this same time period, the number of DSP invoices issued to responsible parties increased from 1,352 to 4,405. In 2008 and 2009, the overall collection rate was 51% of the invoiced amounts. Twenty-four months after implementation of new processes, the Indiana DOT improved the collection to 88% for claims under $50,000, which constitute the majority of claims filed. This paper provides a summary of the evaluation process, implementation effort, and outcome assessment metrics that can guide agencies looking for improvement opportunities in repair and invoicing activities related to damage from motor vehicle crashes.