After Lean Six Sigma implementation, the defect rate reached near zero and cycle times were reduced from two weeks to three days. The U.
Coast Guard Finance Centre used Lean Six Sigma to create a new standardized process for accounts payable services, which improved customer satisfaction levels. Other companies have used Lean Six Sigma to reduce the cycle time of the quarterly financial reporting process and to reduce the time needed to close books, reduce variability in financial reporting, improve shareholder value, and increase the accuracy of the finance process.
The cost savings Lean Six Sigma can generate are, of course, quite attractive to companies that operate in the finance sector. However, there are certain challenges that need to be addressed when implementing Lean Six Sigma projects in these types of companies. Financial institutions do not deal with the same types of products and processes as manufacturing organizations, so their areas of opportunity can be more difficult to identify and measure.
Capital One banks on Lean Six Sigma for strategy execution and culture transformation. When a major shift in strategy propelled the Capital One Direct Banking business in a new direction, the organization—arming itself with Lean Six Sigma expertise and capabilities—set out to change its management model, redesign its major business processes, and nurture a culture cantered around customer focus and continuous improvement.
Self-organizing Six Sigma Program: as-is model and need for changes
Three years later, the associates have embraced this new culture of customer focus and a commitment to continuous improvement—all with enviable results to the bottom line. The Direct Banking business has been recognised both internally within Capital One and by external organizations with numerous awards for accomplishing this impressive cultural transformation. Facing an inquiry response time 4 times longer than their own set standard of 5 days, an unnamed Financial Service Company turns to a caue validation techniques to discover the multiple causes contributing to delayed responsiveness.
Waste in the finance industry Lean Six Sigma focuses on the reduction of waste, which is sometimes translated as increased speed. Delays Customers waiting for services, waiting for delivery of paperwork, waiting in queues and waiting for institutional responses. Duplication Having to re-enter data, repeat details on forms, copy information across multiple screens or applications and answer queries from several sources within the same organization. Unnecessary Movement Queuing several times, the absence of a one-stop experience, poor ergonomics in the service encounter, single activity touching multiple desks.
Six Sigma: A Tool to Increase Customer Satisfaction at Bank of America
We do this by helping you implement the best workflow or process to diminish waste while reducing variation, cycle time, and rework. While we draw from our experience with other clients in your industry, we know that each business is unique. At BTI, our Lean Six Sigma experts are fully prepared to help you enjoy the many benefits of this process improvement technique.
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Six Sigma - at a Bank?
Six Sigma and Lean Project Implementation. By helping you to create, deploy, and sustain an organization-wide Lean Six Sigma quality culture. We want your company to be among those that have achieved lower operational costs through LSS.
It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
Chat with us Please leave your feedback. The case discusses in brief the concept of Six Sigma, its implementation procedure and its benefits. It also explores the implementation procedure at Bank of America and the benefits derived by the company on account of adopting Six Sigma. Bank of America Corporation, Kenneth D.