Assessment Scorecard using the PEMM Framework

JWI 550: OPERATIONS MANAGEMENT

COURSE PROJECT PART C

SIX SIGMA PROJECT CHARTER

November 2017

Six Sigma Projects for Recommendation

In the banking sector, the transaction process is associated with transaction steps that have an impact not only on the overall transaction time but also on customer satisfaction. Thus, it is essential for the bank to analyze the data collected in regards to their defined parameters in order to identify the various processes that require improvements, enhance customer satisfaction and eliminate wait wastage. This process is sometimes cumbersome and tedious and, as a result, it is one of the banking sector areas that receive many complaints from customers and thus needs to be dealt with. In line with the value stream mapping, it was established that the bank requires re-engineering of the processes to have an efficient method that will reduce waiting time and enhance customer satisfaction. Therefore, the project that is recommended is to determine the part of the transaction process that has much impact on the overall transaction time – to identify steps that contribute to increased waiting wastage and elaborately come up with a better alternative that will gain the approval of the bank’s management.

Project Charter

Problem Statement

It is essential to appreciate the fact that the banking sector is characterized by numerous processes that have an impact on customer satisfaction. Hence, it is financially viable for the bank to concentrate on improving the processes that impact the level of customer satisfaction significantly to have a competitive advantage. The transaction process is a process that includes the customers getting to the teller section, forwarding their request, and the teller getting approval from the managers to process the said request. It is thus a cumbersome process that can impact the level of customer satisfaction (Wang & Chen, 2010). The waiting wastage in this process is a concern that should be addressed as a matter of urgency, to eliminate the steps in the process that take long to accomplish and redesign the process to ensure enhanced levels of efficiency and customer satisfaction.

Goal Statement

The objective of the project charter is to enhance the level of customer satisfaction by ensuring that the bank's transaction process is smooth and efficient. Hence, in a nutshell, the charter’s objective is to ensure operational efficiency, ensure that the bank remains competitive, and ultimately ensure that the bank’s customers are satisfied with the services offered.

Project Scope

The bank will shortlist a team of observers who will be tasked with the responsibility of measuring the waiting time within the transaction process under various scenarios in the different branches of the bank. This team will then be enjoined in the formation of the project initiation team that will work towards ensuring that the expected benefits are realized upon the project’s completion. The entire project team will be guided by a project manager who will be responsible for ensuring that each member of the team works towards the set objective and will also be responsible for briefing the bank’s management on the progress of the project. Update meetings and reviews will be conducted. The team is thus expected to come up with a modified version of the transaction process, which includes elaborate process changes that involve the creation of new avenues that will ease the process and save time. It will also look at the shortcomings that could be attributed to a shortage of staff and the way in which agency banking could fill the gap and result in reduced operational costs.

Critical to Quality Requirements

Bank customers require excellent customer service. This is a need that is currently not fully satisfied as the transaction process is still cumbersome and requires some improvements and some of the steps eliminated or separated so that the level of efficiency is enhanced. The quality driver for this particular project is waiting time because, through analysis and observation, it has been established that excellent customer service is impacted by waiting waste that is within the bank's transaction process. The performance requirement, in this case, is that the waiting time is reduced to an acceptable level and that at least a majority of the bank’s customers are satisfied with the waiting time (i.e. that customer request is handled within the adequate waiting time levels).

Key Metric Y

The key metric will be the cost of overhead operations when serving a customer. This is because during the time a customer waits for their requests to be transformed overhead costs continue to increase. Hence, the project will be regarded as being successful if the overhead costs drop.

Expected Operational and Financial Benefits

Customers spend close to four minutes in the transaction process from the time they get to the teller’s window to the time they get served. With the implementation of the recommended project objectives, this time will most likely reduce to an acceptable level. The new avenues such as agency banking, if implemented, will eliminate the need to have customers at the banking hall and also ensure that they access and process their request much more efficiently. This will enhance their level of satisfaction and, as a result, improve the bank's competitive advantage and translate to improved financial performance. Besides that, the bank will achieve operational efficiency, reduce operational costs and ultimately attract more customers, as a result of which the financial well-being of the bank will be improved (Kwak & Anbari, 2006).

DMAIC Milestone Dates for Each Phase

Project Team:

Champion:

References

Kwak, Y. H., & Anbari, F. T. (2006). Benefits, obstacles, and future of six sigma approach. Technovation, 26 (5), 708-715.

Wang, F. K., & Chen, K. S. (2010). Applying Lean Six Sigma and TRIZ methodology in banking services. Total Quality Management, 21 (3), 301-315.

JWI 550: Six Sigma Project Charter November 2017 Page 6 of 6