6 Sigma Bank Case Study
Kaan Akyildiz
6SigmaBankltdCaseStudy.pptx1
6 Sigma
Bank Ltd.
Case Study
Introduction and Assignment
1
Assignment All studies must be handled individually so no group work is expected and allowed
Read the case on following slides
The measurement data is on «6 Sigma Bank Ltd.MPJ» minitab file
Finalize described studies for ANALYZE phase, as next slide
Save all your minitab analysis files of your studies
Prepare the summary power point file
Send Power Point and Minitab Files to [email protected] (instructor)
Deadline is 09.12.2018 23:59
Instructions
Prepare a summary power point file for below:
Determine minimum 4 Potential Root Causes by using Why-why or Fish bone Diagram as you wish
List of your potential root causes and state which analyze tool will be used to validate root cause in such a table format below
Choose appropriate Minitab graph and paste screenshots to represent your analyze graphically such as Histogram, pareto chart, box-plot or scatter plot
Make the appropriate Minitab Analysis for root cause validation such as «T-test, ANOVA, Regression, Correlation» and paste results from Session window
State your Conclusions as «Reject or Fail to reject Ho in the summary table
2. Save all your minitab files of your studies including graphs and analysis
| Potential Root Causes | Analyze Tools to Validate | Graph to use | Conclusion | |
| 1 | ||||
| 2 | ||||
| 3 | ||||
| 4 |
4
6 Sigma
Bank Ltd.
Case Study
4
6 Sigma Bank Ltd.
6 Sigma Bank Ltd. has rapidly expanded its markets for financial services in 12 countries.
They want to be seen as a global company with local focus.
The new CEO has recently announced that in two years they will be the number two financial services provider in the world. 6 Sigma Bank is currently the fourth largest provider in the world.
Sydney, Paris and New York are the three locations which have the greatest number of loan and lease applications.
5
6 Sigma Bank Ltd. Background
Global Finance’s rapid growth strategy has led to some significant issues in being able to meet customers’ requirements. Management studied their markets and found that they have some common issues among the various countries. They also believe that specific issues will apply to some markets. They have determined that cycle time for loans and leases is a key competitive issue in all markets. The critical customer requirement, our CCR, is 8 days world-wide. Our current loan approval process takes an average of 9.2 days. The lease approval process also takes an average of 9.2 days. Our research shows that our competition is meeting the customers’ requirement of 8 days. Also, applicants defecting from the process is costing us $165,000 in unfunded processing costs as well as $2,500,000 in lost revenue per annum.
The president formed a team in support of the CEO’s recently announced goal.
The team’s job is to understand company-wide and local issues in order to reduce cycle time for the loan and lease process.
6
6 Sigma Bank Ltd. Background
Sigma performance level of 1.3
1
2
3
4
5
6
8
9
10
11
12
Month
Average Cycle Time
Customer Requirement
Loan/Lease Process Performance
GAP
x
x
x
x
x
x
Current Performance x = 9.2 days
Application
Process
Review
Process
Approval
Process
Notification
Process
Loan/Lease Work Process
7
Loan & Lease Project Charter: Global Loan and Lease Process Cycle Time
| Business Case: This project supports the corporate goal of becoming the number 2 global financial services company by increasing customer retention and satisfaction. | Opportunity Statement: An opportunity to reduce customer defection (27% of applicants) and reduce cost may be achieved by improving our global loan and lease processes. The Loan and Lease processes currently have an average cycle time of 9.2 days which is worse than our customer requirement of 8 days and our application processing cost exceeds the application fee by 18%. Customer defections represent a revenue loss of $2,500,000 per year and a cost to $165,000 for partial application processing. Current Sigma is 1.3. |
| Goal Statement Reduce average loan and lease cycle time to 8 days by July 1. Improve sigma 1.7 by July 1. Reduce processing cost by 20% by the end of the year. | |
| Project Scope : Loan and Lease Processes - begins from a call from the customer and ends with the acceptance or rejection letter sent to the customer. New York, Sydney and Paris offices are in scope. | Project Plan: Define Measure 4/26 ? Analyze ? ? Improve ? ? Control ? ? |
| Team Selection: Albert Anderson (Project Sponsor); Carrie Carson (Master Black Belt); Barry Bethel (Black Belt) Denise Davidson (Customer Service); Eric Edwards (Sales Representative); Frank Fischer (Loan Department) |
Our Indicators
P1: Wait Time for Information During Loan = 1.2 days
P2: Total Approval Time for Loans =
4.9 days
O1: Total Cycle Time of Loans =
9.2 days
The Customer Service Department
Credit Representative
Credit Department
Loan Officer
Credit officer
Customer calls
calls and interview
collect information
Go to Lease Process
Sent the form
credit check
Approve
send a reject letter
Notification is sent
A1
A2
A3
D1
N
Y
D2
Y
A4
A5
N
Y
N
Y
O1
D3
A6
D4
A8
A7
N
Take information & sent to Sales Representative
loan?
İs the information complete
credit decision
notifiy the customer
P1
P2
The Sales Representative
The Customer
The Loan dpt Customer Service
complete the loan application
The Loan Process
Examine the collected data
Determine Potential Root Causes (Why-why or Fish bone Diagram)
Validated Root causes (Minitab Analysis, histogram , box-plot , T-test
ANOVA ,Regression, Correlation) and screenshots of each graph and analysis
Prepare a presentation for the findings
Analyze Plan
