The risks might result in the inability to follow Lean principles and might hamper the realization of the benefits. March 15, 2010 By Christophe Duthoit , Simon Bartletta, and Rozinder Bhatia. Which parts weren’t? Case Study Lean Six Sigma solves a commercial bank's growth problem When credit issues constrained growth for a commercial bank client, Bain applied Lean Six … This case study will review how a Black Belt entered a dot-com transactional business, reviewed a process and came to his own conclusions about process performance. They came in at over $80 million. The implementation effort began with an 8-week, bank-wide Phase I analysis. Perhaps it was too sophisticated for its own good. proposed a customer satisfaction index model. Applying Lean thinking in the Food Supply Chains: A Case Study The purpose of the study is to examine the adoption and implementation of lean thinking in food supply chains. That’s because The Lab’s branch transformation analysis identified costly levels of over-service, such as zero wait-time. Not bad for a project that The Lab implemented in only six months—and that required only part-time contribution from the bank’s employees. Sustain Your Lean Business System with a "Golden Triangle" – Revenue productivity increase, – Retail branches (1,000) In fact, financial institutions leveraging lean banking operations report results of 20-30% cost reduction within 12 to 18 months and maintain cost-efficiency ratios below the industry average. We stopped making assumptions and started analyzing the reality." Lastly, unlike other banking process improvement methodologies, lean banking … But what’s even more staggering is the fact that they’re not unusual. And it achieved zero competitive advantage for its effort. This Case Study is a fictitious example developed to illustrate the combined use of the Banking Industry Architecture Network (BIAN) Reference Model with the ArchiMate® modeling notation and the TOGAF® framework (both standards of The Open Group). The bank suffered from its own success. Lean management case study series: Lean in Distribution: Go to Where the Action Is! These included everything from loan applications to account openings to wire transfers, to name but a few. The training skills and the course material are outstanding.-Maghusudan Shivaprasad, Asst Team Leader, AL Mashreq Bank Dubai. Implementation was complete within 7 months. “No waiting in the teller line” may sound like a good thing, but the fact is that customers don’t place a terribly high value on it. This case study of a recent lean initiative implemented by The Lab Consulting concerns the commercial and small-business lending businesses of a Top 5 Canadian bank. The bank’s hard-won competitive advantage was at risk from its mediocre operations. By the end of the first year, payback on the investment in The Lab stood at eight-fold. value, elimination of waste and employee-driven change—before considering the implementation approach taken and outcomes achieved. I liked the presentation and the case studies the most.-Sushma Kundapur, MIS Supervisor and Quality, Deutsche Bank. Since it was an online bank, there were no branches for customers to … It had to adopt lean … The Lab achieves these kinds of results routinely. With more than 1,000 branches and 15,000 employees, the bank battles for market share with the world’s largest money-center banks. The front office created errors that the back office corrected. Yet taking a lean banking approach to operations would be tricky. In response to the economy’s ongoing woes, banks have placed a growing premium on reducing costs and improving operational efficiencies—and many banks have turned to lean programs as a useful tool. Corpus ID: 110651759. Reducing this over-service always delivers a major cost reduction in banking—roughly 20 percent of branch organization capacity. Case Study: Online Banking. But increasing knowledge worker productivity was tough. Apart from investment banking, Barclays is organised into four core businesses: personal banking, corporate banking, wealth management, and investment management. Non-technology, self-funding operational The operations that needed help spanned eight states across the northeastern U.S.—a network including 700 branches. Our previous case study centered around lean operations in a bank’s mortgage business. Lean Six Sigma can also bring about significant results and breakthrough improvements in financial services, as demonstrated with four case studies from … – Back office: deposit ops; loan ops… Cost cutting measures were easy. Implementing Lean Service Operations: A Case Study f rom Turkish Banking Industry. Yet more than 70 percent of the improvements we uncovered required no new technology whatsoever. Deep Digitization in Utilities Operations. Competitors noticed. A handful of implemented best practices in banking operations and daily productivity … This client initiative summary case study on lean finance process improvement and transformation concerns a Top 5 U.S. bank, a leader in residential mortgages and small-business lending. 173 . The benefits of applying lean methodology to the banking industry include finding waste, eliminating variances, … Back-office groups including deposit and loan operations. The findings of this study shows the great potential of lean management as a mean Calidae Case Study: True Lean Company Meets a True Kanban Software "Kanbanize is a useful tool to monitor team members' work and reflect upon what’s happening in projects and their tasks. – Support groups: IT; finance; HR…. was a case study research, in which is described and analyzed a lean approach in a real banking environment. And these competitors’ lean process improvement capabilities gave them an operational efficiency advantage. Six sigma approach helps in getting rid of variations in set processes. Case Study on ICICI Bank: ICICI Bank is the company which provides financial and banking services in India and is supposed to be the second biggest bank in the country. A Fortune 500 banking institution with an existing Lean Six Sigma program was suffering from low interest in continuous improvement. Executives tried to implement lean banking improvements. You read right: more than half of the knowledge workforce was spending its time correcting and completing inbound work products. IMPLEMENTING LEAN SERVICE OPERATIONS: A CASE STUDY FROM TURKISH BANKING INDUSTRY @inproceedings{Erdem2009IMPLEMENTINGLS, title={IMPLEMENTING LEAN SERVICE OPERATIONS: A CASE STUDY FROM TURKISH BANKING INDUSTRY}, author={S. Erdem and Koray Aksoy}, year={2009} } Oh, and did we mention the overall savings, which recurred annually? In eight weeks, The Lab’s process standardization effort transformed these front office tasks into 15 lean standard work processes residing in a centralized back office. But their internal operations consulting teams struggled. At DBS Bank, we were recently trying to find … Most of these banks will find themselves disappointed, however, because few lean initiatives, in our experience, … Copyright © Lab Consulting Partnership, 2021 | All rights reserved. Handpicked Content: A Six Sigma Case Study - Tutorial for IT Call Center - Part 3 of 6 Applying Lean in 5 Steps The Lean approach focuses on continuous identification and elimination of waste and NVA activities, which can help improve operational efficiency in a voice-based SCC. demonstrated through case studies that financial institutions use Six Sigma (DFSS) to develop policies and procedures to eliminate compliance … In effect, the bank’s branches was over-serving, over-staffing, and over-spending. ... CASE STUDY, OPERATIONS. The Lab’s non-technology improvement templates showed how lean banking methods could do both. Support groups such as IT, finance, and HR. The operations that needed help spanned eight states across the northeastern U.S.—a network including 700 branches. Since opening its doors in 1993, The Lab has helped some of the best companies in the world become even better. Lean methodology helps in getting rid of waste derived out of non-necessary analysis. This generated a self-funding, Phase II implementation work plan. They failed to find ways to improve banking services while achieving cost reduction. Sales execs had also failed to improve operational efficiency. Examples: Improved Inbound Quality — More than 45 percent of inbound loan and account applications arrived in the back office with significant data errors and omissions. The bank was the product of several mergers. This case study is all about making a lean transformation in operations across the banking enterprise. The study shows what organizations, in particular commercial banks, can gain from Lean Management. The case study not only shows that Lean service innovation can have many advantages, but also draws attention to the risks. This is precisely why a management team, helmed by the bank’s chairman, got in touch with The Lab. The bank in this story is the American division of a Top 3 bank in Canada. Customer service lagged. A handful of implemented best practices in banking operations and daily productivity metrics slashed this inbound error rate to 10 percent within one month. – Enterprise-wide operations To achieve this objective, it has been conceived a comparative study of Lean Management using available literature, critical analysis and professional experience of the author. Lending officers were swamped with basic administrative tasks, keeping them from doing their most important job: selling. Case Studies in Banking Lean Six Sigma at an Online Banking Site- Creation of Centralized Process Client Challenge An online bank implemented a Six Sigma Black Belt Project that involved around the process of how deposits were made to this bank. Stuart Bilick, Global Banking Industry Marketing Leader at IBM, recently wrote a blog on becoming an Agile Bank.He says that banks face three key challenges to become an Agile bank… The bank in this story is the American division of a Top 3 bank in Canada. They performed a case study research by describing and analyzing the implementation of Lean principles and tool to one of the largest Portuguese banks. banking (Forsyth, 2004). This super-regional bank maintains a Top 3 competitor status in its eastern U.S. markets. The newest 2020 retail bank cost cutting post, methodology, and case study can be found here: Cut Banking Costs Now: Achieve “The New Normal” for Productivity “Big Rock” 1 of 3: The retail branch network If your bank is in need of a lean transformation, learn more about The Lab and our non-technology approach, including our unique self-funding engagement model and money-back guarantee. – Lean banking improvements Without spending a dime on new technology, this bank was able to reap astonishing rewards from this lean transformation: The entire engagement self-funded in just four months. But we discovered a lot. Branch service levels increased more than ten percent—all the more impressive considering that overall required headcount was reduced by more than 20 percent. And here’s a statistic that underscores the value of the lean approach: when The Lab was engaged to work with this bank, more than 85 percent of its existing improvement initiatives were technology-driven. Some experts, in fact, say banks report these efforts have rendered savings of between 20% and 40%, and sometimes higher. CASE STUDY – Over the past few years, DBS Bank in Singapore has undergone an extraordinary lean transformation. Which parts were lean? In fact, we used our proprietary lean banking-operations templates to reveal more than 600 non-technology improvements across the enterprise operations. Every day. Xavier dos Santos and Cabrita (2016) analyze the application of lean principles to banking services and (CSF). Reduced Duplicated Activities — The retail branches often performed tasks that were duplicated in back office business processes. Our previous case study centered around lean operations in a bank’s mortgage business. Revenue productivity was up 15 percent. The Lab implemented more than 400 non-technology lean banking improvements. Revenue-producer uptime increased by 30 percent. This case study is all about making a lean transformation in operations across the banking enterprise. Years of improving marketing and product development swelled volumes in the branches and contact centers. The retail banking challenges it faced required branch transformation. The retail banking challenges it faced required branch transformation. Now, the board demanded cost cutting measures to increase profitability. Using the case studies, study mitigation mechanisms are … People often think of “support” as “the cost of doing business.” But these organizations can benefit from a lean approach. In this exploration paper we show the utilization of lean six sigma in a call focus of bank industry and this investigation dependent on essential information from genuine undertaking. It covered: It took The Lab eight weeks to analyze the situation. The Lab demonstrated that customers were indifferent to wait times as long as 90 seconds. Pre-Analysis Phase In order to identify appropriate Six Sigma projects, a cross-functional team from sales, marketing and operations was formed to investigate the key drivers of car loan business and market share growth. Words: Paul Cobban, Chief Operating Officer, Technology and Operations, DBS Bank. – 7-month implementation. The scope of the assignment was massive. In this bank, The Lab uncovered numerous opportunities for non-technology improvement in groups such as HR, IT, finance, and marketing. Within 6 months, The Lab had standardized the bank into a “knowledge work factory.” Bank-wide operating costs fell 20 percent. Examples: Improved Inbound Quality — More than 45 percent of inbound loan and account applications arrived in the back office with significant data errors and omissions. The methodology used was a case study research, in which is described and analyzed a lean approach in a real banking environment. Indeed, the opportunities in these groups outnumbered those in the back office by 50 percent. Reduced Customer Over-service — The bank execs passionately believed that customers appreciated zero wait time in the branches. SAFe Case Study: Standard Bank ... —Alex Keyter, Lean Agile Transformation Consultant (SPC4), Standard Bank. improvement implementation: – No new technology Lean Banking Improvement – Implementation Examples. As can be seen easily in literature review, there is a great lack of lean service implementations in banking operations. Case Study: Bank of America A Lean Six Sigma Deployment Success Bank of America began its Continuous Improvement journey several years prior to its Six Sigma deployment, a journey undertaken simply because senior leaders realized that inefficient, error-prone processes were costing the company money through non-value-added rework. They launched copycat products. Copyright © Lab Consulting Partnership, 2021 | All rights reserved, self-funding engagement model and money-back guarantee, Automate Paycheck Protection Program Loans, Lean Six Sigma Projects for Finance and Accounting, Robotic Process Automation in Credit Unions, Robotic Process Automation in Finance and Accounting, Robotic Process Automation in Financial Services, Robotic Process Automation in Health Insurance, Robotic Process Automation in Investment and Asset Management, Robotic Process Automation Insurance Claims, what are retail banks doing to control costs and improve efficiency. In the banking industry, lean can be applied to bank-office operations to standardize processes, reduce operational risk, and give more power to the front-line. – Front office groups … The key people charged with bringing new revenue into the bank—its vaunted sales force—were hampered. The certification program serves as an eye opener in putting out-of-box thinking into practice. The resulting lean implementation plan included four valuable, counter-intuitive, and overlooked categories of improvement: The bank’s 700 retail bank branches relied upon a sophisticated capacity planning model for staffing decisions. Ad-hoc customization of offerings and terms were rife. Based in South Africa, Standard Bank is the largest African banking group, with total assets of ZAR1.95 trillion (USD143 billion). Since the majority of food companies are small and medium food enterprises (SMEs), a lean action plan was developed taking into account the particularities of SMEs. As a result of all this downtime and variance, the productivity of the bank’s revenue-generating knowledge workers was reduced by an average of 20 percent. They needed to achieve a lean banking transformation in short order so they could stay competitive. Here, the COO explains how the company has become the world’s “best digital bank”. The impressive lean turnaround of DBS Bank in Singapore. But operations execs had failed to improve productivity faster than revenue growth. The Black Belt began working at an online bank, and his first project involved the process of how deposits were made to this bank. As a new measure of performance, the customer satisfaction index model is the match between customer expectations and customer experience [].Riley et al. 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