Optimizing Savings Account Operations
This case study focuses on the Lean Six Sigma (LSS) DMAIC (Define, Measure, Analyze, Improve, Control) project executed in the banking services sector. The project aimed to enhance wealth management and customer services by addressing the problem of extended waiting times for savings account operations.
Bank faced a critical challenge of prolonged waiting times for savings account operations, resulting in customer dissatisfaction, operational inefficiencies, and increased costs. The long waiting times were adversely affecting the bank’s ability to provide timely and efficient services to its customers, undermining the overall customer experience. This case study outlines the LSS DMAIC approach taken to address this problem and achieve significant improvements in process efficiency, customer satisfaction, and cost savings.
The Approach
While Defining the issue a cross-functional team drawn from various departments within the Bank was formed. The team included SME’s from operations, customer services, and IT departments. This diverse team composition was essential to ensure a comprehensive understanding of the issue and leverage expertise of each.
VOC was gathered through various means, including surveys, focus group discussions, and direct interactions with customers at the bank’s branches. The collected data provided valuable insights into customer preferences, pain points, and expectations regarding savings account operations. It was instrumental in defining the project’s primary objective, which was to reduce the waiting time times and improve overall customer satisfaction.
The success indicator was set at achieving a remarkable 60% reduction in the time required for opening savings accounts.
The Measure phase involved comprehensive data collection and an assessment of the current process’s capability. Data was analyzed to reveal that the average waiting time for savings account operations was 23.7 minutes, with short-term and long-term process capabilities of less than one, respectively. Key factors influencing cycle time were identified through value stream mapping and defect analysis.
A rigorous analysis was conducted to identify the root causes of extended waiting times. Various tools, including cause and effect matrices and Failure Modes and Effects Analysis (FMEA), were employed. Factors with high-risk priority numbers (RPNs) were singled out for corrective actions, focusing on the most critical initial variables. The key variables identified were:
- Documentation accuracy
- Complex forms
- Staff skill levels
- Multiple approvals
- System delays
The Improve phase encompassed a systematic approach to address the identified root causes and deliver substantial improvements in process efficiency, and customer satisfaction. The team engaged in brainstorming sessions to generate a wide range of solutions. These sessions encouraged creative thinking and the exploration of potential solutions from multiple perspectives.
Redesigning the existing process was a key component of the solution identification process. The team thoroughly analyzed the current process flow and identified areas where improvements could be made. By eliminating non-value-added steps, simplifying complex procedures, and optimizing the sequence of tasks, the team aimed to streamline the process. This also included reevaluating the roles and responsibilities of different team members.
The complexity and length of forms and documentation required along with multiple approvals were identified as potential bottlenecks. Simplifying the forms and documentation was a critical solution to reduce waiting times.
The team created prototypes of the redesigned process, including the simplified forms and documentation. These prototypes were tested with a controlled group of customers to identify any potential issues or areas for further improvement. This iterative approach allowed the team to fine-tune the solutions and ensure that they were effective in practice. The team actively sought feedback from both customers and internal staff to ensure that the proposed solutions met their expectations and requirements before implementing those solutions.
Lastly, Control measures were established and implemented to ensure that the improvements made during the project are sustained over the long term.
The project implemented ongoing monitoring, standardized processes, training and skill development, documentation and reporting, and a feedback mechanism to ensure the sustainability of the improvements achieved. These comprehensive control measures were put in place to safeguard the gains made during the project and maintain the enhanced efficiencies.
As a result of these collective efforts, the project successfully reduced waiting times from average waiting time of 23.7 minutes to 9.5 minutes. These substantial improvements not only benefited the bank’s operational efficiency but also contributed to enhanced customer satisfaction and significant financial savings.
Conclusion: This case study highlights the effectiveness of the LSS DMAIC approach in the service industry. It underscores the significance of management commitment, allocation of resources, and training in achieving substantial enhancements in process capability, customer satisfaction.
At Immensa Consulting, we help organizations by developing skills and streamlining operations and processes. Our services focus on Performance Excellence through Operational and Process Excellence Consulting, Projects Consulting and Continuous Improvement Training/Workshops.
To learn more about our services at Immensa Consulting, and how we can assist your organization in achieving Performance Excellence, please don’t hesitate to contact us at info@immensaconsulting.com or visit our website https://immensaconsulting.com/