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6  Project Account Opening (ACO) (Executive Summary)

6  ACO Project Team (ASP OPP). (V.2) July 2004. 6  Project Account Opening (ACO) (Executive Summary). D. M. C. Problem Statement:

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6  Project Account Opening (ACO) (Executive Summary)

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  1. 6 ACO Project Team (ASP OPP) (V.2) July 2004 6 Project Account Opening (ACO) (Executive Summary)

  2. D M C Problem Statement: Feedback from both internal/external customers revealed that the performance of the New Account Opening Process (ACO) in terms of quality and efficiency are not totally meeting internal operational standards and external customer expectations. Preliminary findings showed that the workflows, the bulky account opening forms, the excessive research and document requirements has led to customer dissatisfaction and created greater opportunity for errors. Opportunity Statement: New account opening is a core process of the Bank. It is the first impression that our customers perceive the Bank. Therefore, improving the quality and efficiency of the account opening process is vital cause it helps enhance customer satisfaction and improve our image as well as reduce the risk of non-compliance with regulations. I A Project Goal/Objective: • Reduce process defects to GHQ standard of 3% or below • Improve process efficiency by at least 25% Project Scope & Boundaries: Account Opening Process • Start: Customer requests to open an account • End: GSC completes the account opening maintenance data inputs into the system Project Plan: Project Team Andrew Long Ross Foden Tommy Chan Ada Chan / Francis Ng Hefron Ng Cindy Leung K M Tam / Brain Lau Serine Chan/ Kitty Choi Carol Zhen / David Fu /Wilson Xiao Bennett Yang / Cathy Wu Project Sponsor Project Supervisor Black Belt (Leader) PFS CMB CIB NOS NSC GZC SPC Activity Jan Feb-Mar Apr May… Define opportunity Measure performance Analyze root cause Select Solution Meet management Implement solution Control plan ACO Team Charter… Feedback from both internal/external customers revealed that the performance of Account Opening (ACO) process in terms of quality and efficiency are not totally meeting internal operational standards as well as external customers’ needs and expectations.

  3. D M C Monthly New Accounts Opened I A (2.1) BBP A/C (1,134 – 3%) (2.3) Personal A/C (19,548 – 56%) Upper Control Limit Company A/C (1,436 – 4%) Centerline (2.7) HP/PVA (13,006 – 37%) Lower Control Limit (2.8) (2.9) 3% (3.4) GHQ Standard Efficiency for All A/C Target: 55 hrs USL= 55 hours Efficiency Sigma = 1.7 Observed Proportion Defective = 43% Target: 48 hrs Target: 144 hrs 0 1 0 0 2 0 0 3 0 0 4 0 0 Mean=67 hours Process Quality & Efficiency… Based on GAA’s last 5 audits in 2002-2003, the quality performance of the ACO process was neither meeting the GHQ standard of 3% nor statistically in-control. In terms of process cycle efficiency, our recent measurements showed the level of performance is at 1.7 or 43% of the transactions not meeting customer’s expectations.

  4. D M C I A Cause and Effect Analysis… Four major root causes to poor quality and inefficiency in ACO processing are identified. They are inflexible signature authentication policy, poor form design…

  5. D M C I A Cause and Effect Analysis… Over-processing and over-controlling the ACO process…

  6. D M C I A Cause and Effect Analysis… Inconsistency and calculation errors are distorting failure rates in ACO processing.

  7. D M C I A Recommendation…

  8. D M C I A Recommendation…

  9. D M C I A Recommendation… • Enhance customer satisfaction (VOC) • Improve operational efficiency and quality (VOP) • Strengthen staff knowledge and sense of pride (VOE)

  10. D M C I A Target: 55 hours (- 32%) Target: 48 hours Target: 144 hours (-48%) Process Improvement and Control A) Improvement in Process Quality and Cycle Efficiency C) Costs and Benefits B) Process Sigma Performance (One-time Cost = $0.40m to be amortized over 5 years) FTEHKD p.a. Recurrent Savings: 31.8 $ 8.3m Recurrent Costs: 1.5$ 0.3m Net Savings: 30.3$ 8.0m FromTo+/- Quality: 3.4 3.7 = +0.3  Efficiency: 1.7 2.3 = +0.6  A “Business Process Management System (BPMS)” – a statistical process control tool will be established for ongoing monitoring the ACO process in terms of customer satisfaction, process performance and employee satisfaction.

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