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Friday Fact – Continuous Improvement Approach for Banks

  • By faber
  • February 21, 2020

Did you know one of the leading banks were able to improve their cycle time from 30% to 95% by implementing Continuous improvement tools?

A national bank was facing issues in improving its cycle time, administrative process, complaint resolutions time, and much more. The bank was searching for solutions to resolve these issues. Later the bank came up with an idea of implementing continuous improvement tools.

The organisation decided on implementing continuous improvement tools to improve the operations of the organisation. In the beginning, the employees of the bank were sensitized on the topic. Later, the implementation stage was divided into 5 schedules.

On day 1 of the schedule, the goals to be achieved are discussed. Apart from that, the training on basic concepts related to the continuous improvement tools and the goals of the organization was conducted. The training was mainly focused on teaching relevant lean or six sigma concepts and reviewing relevant data of the bank where it will be applied.

On day 2 of the schedule, there was a study that was conducted on the problems and situations that the bank faced. The teams were supposed to visit each portion of process, conducting a cross-functional survey to find insights of that specific area.

They also started implementing Value Stream Mapping (VSM). While implementing VSM, the focus was on improving Cycle time, reducing the Number of steps in all the process of the services, reducing Rework loops, reducing Queuing delays, improving Work-In-Progress, reducing Transportation time, and much more. The process of mapping the current state map and future state map was done.

On day 3 of the schedule, after completing the process of mapping, the team started identifying the solutions. After this, the team reorganized and created a solution map that consisted of all the points that they should implement to solve the identified problems.

On day 4 of the schedule, the team started applying the solutions. They began with testing of the solutions to check if or not the desired results are being generated.

On day 5 of the schedule, the participants prepared a report. They also presented their findings to the organizational head. The participants were expected to get to the solutions to the problems discussed. They were informed to get to the solution based on the business priority.

After implementing the continuous improvement tools, the Cycle time was improved from 30% to 95%. The administrative process was improved from 20 min to 12 min. Complaint resolution was improved from 30 days to 8 days. This project helped the organisation in cost reduction and savings of hundreds and thousands of dollars.

As you can see, continuous improvement tools are not only helping manufacturing sectors but also the service sectors and other industries. Implementing continuous improvement tools is possible for any industry and any sector. Have you started working on continuous improvement tools and techniques for accelerated and sustainable growth?