Six Sigma Project Storyboard

1. D M A E C Six Sigma Project Storyboard Business – NRI Services (Personal Financial Services) Project – Reduction in hands on time of NRI Inward Remittance Transactions in UAE / UK / US Champion Manasije Mishra Head – HSBC INM NRI Services Project Team Vandana Katju – US NRI Center Reena Dedhia – UK NRI Center Balamurugan – UAE NRI Center Hitesh Mehta – UK NRI Center Shalu Chopra – UK NRI Center MK Srinivasan – CAS, Chennai Sunil B Reddy – UK IT Veera Madtha – UK IT Green Belt Deepa Shahi, Vice President – NRI Services Master Black Belt / Black Belt Sudhanshu kwatra, AVP - Six Sigma Master Black Belt Date of start Sep ‘06 Define Measure Analyze Engineer Control

2. D M A E C Six Sigma Way.. 2010 – 10x growth NRI Business Focus GEN IV – New Product Proposition 2008 – 4x growth • Design : Design for six sigma opportunities in acquisition and RMT team • Sales : Design of NRI website as a sales tool • Cost : Reduction / Optimization of different cost heads in NRI. GEN III – Lead Conversion 2007 – 2x growth • Productivity : Increase in average productivity of NRI sales PRM’s /SPRM’s • MIS : Streamlining of all NRI Sales MI In NRI INM GEN II – Scalable operations Building Foundation • Remittances – Make the operations scalable to handle the volume surge by reducing the processing time by > 50% GEN I – Meet Competition Six Sigma Deployment • A/c Opening Process : Reduce turn around time of a/c opening from 23 days to 3 days in UAE Parallel replication in all NRI centers NRI Services – Multi Generation Plan

3. D M A E C Define Summary Business Case:NRI is a growing business and contributes > 50% to PFS balance sheet. NRI team is looking to double it’s customer base by end 2007. As Remittances are a key hook to help increase the NRI base, we are looking at various ways to promote remittances to India as part of our overall NRI strategy, especially the internet & fast cheque mode. Free and fast remittance transactions are the most crucial aspects of this service. Given these new product features, the surge in operations volume is expected to 8 times. Hence to make operations scalable, it becomes imperative to streamline / reduce processing times. This will also enable error proofing. Problem Statement:Current per processing time combined for fast cheque / on line transfers customer instruction is ; US – 9.68 min. UK – 9.38 min. UAE – 18.81 min. Processing is currently largely manual in both these routes, takes time to process and therefore neither volume nor error proof. Project Goal: Target o the project is to reduce processing time by 50% in US / UK / UAE NRI centers for Fastcheque / On line transfer’s / customer instruction combined • Start Point : Fastcheque/Customer Instruction received at NRI center / Online transfer initiated • End Point – Credit to customer’s account Project Scope Estimated $ Benefit • Financial Savings : $ 100,000 Customer Output Input Supplier Process Cheque rceived at NRI center NRI Customer Credit to customer’s account Fast cheque / Online NRI Customer Cheque put in clearing / funds received in suspense a/c Data entered in excel sheet and forwarded to CAS CAS actions the request Credit done in customer’s account End Process

4. D M A E C Measure Summary Continuous Gage Study 2 : Gage R&R failed. Based on discussions with champion decided to move to next step Unit of Measurement Output – Credit in customer’s account Unit – Each day Specifications / Defect Definition Metric is processing time in min. in US / UK UAE: Continuous metric Frequency - Daily Unit - Each transaction Opportunity - 1 per unit or 1 per transaction Defect - Any day the processing time per transaction exceeds ; US – 4.79 min. UK – 4.69 min. UAE – 9.41 min. GRR % - Current Process Capability : Project Target DPMO - 874,095 As Is Process Map : DPMO – 897,133 Continuous Gage Study 1 : DPMO – 1,000,000

5. D M A E C Analyze Summary Dependency on treasury for rates leading to batching /person dependent, Input from various countries is not standardized for CAS User accessing 100 screens each day to input the required information manually in excel NRI Centers liaising with CAS / Call center for basic information leading to increase TAT / 3 different PC’s being used for processing Mundane jobs done at Front end – NOT SALES!

6. D M A E C UAE Improved Process Flows Improved UAE Fast cheques / Customer Instructions process map : CAS prepares the excel sheet manually which includes TRY rates Consolidated amount forwarded to UAE for passing TT Cheques received in UAE NRI Center Cheques scanned in GWIS and Credit slips prepared Automated HUB check is done on excel sheet CAS uploads the excel sheet for passing credit entries Cheque put in clearing UAE NRI CAS Improved UAE Internet/Online process map : CAS copes the data in excel and manually includes TRY rates CAS uploads the excel sheet for passing credit entries UAE NRI center receives / downloads report Report is forwarded to CAS for processing Automated HUB check is done on excel sheet End Process UAE NRI CAS

7. D M A E C UK Improved Process Flows - Solutions Day 0 – Customer initiates the transactions on internet Day 1 CAS uploads the soft copy in The automated converter to convert the sheet in upload able format. Enters the pre agreed treasury rates in the excel CAS forwards the sheet back to UK for entering as special rate. Sheet is forwarded back to CAS UK NRI center downloads report UK NRC creates a bulk TT on hexagon & reconciliation with suspense a/c CAS passes the accounting credit entries via upload on hexagon Report is forwarded to CAS for processing Automated HUB check is done by uploading the converted sheet in the converter again NRC NRC Center CAS CAS Center

8. D M A E C Control Summary - UAE 5.6 Hrs. 57% reduction in hand on time 2.8 Hrs. Total Time spent in Hrs. Daily 2.3 Hrs. 1,00,0000 500,000 DPMO 14,837 18.81 Min. 9.41 Min. Time Per transactions $ 40,000 8.12 Min. Financial Benefit : Baseline Target Achieved • Note : • Time per transaction is total of Fast cheque + Internet Banking + Customer Instruction. • Total time in Hrs. is total time spent on Fast cheque + Internet Banking + Customer Instruction(Time per transaction*Average Daily Volume)

9. D M A E C 6.63 Hrs. 3.31 Hrs. Total Time spent in Hrs. (Daily) 48.9 Min. 897,133 500,000 DPMO 0 5.70 Min. 2.85 Min. Time Per transactions 41 Seconds Baseline Target Achieved Control Summary – NRI UK (Online Payments) 88% reduction in hand on time $ 51,708.32 Financial Benefit : • Note : • Time per transaction is hands on time spent by NRC and CAS team on Online payment • Total time in Hrs. is Time per transaction*Average Daily Volume which is 120 as of Jul ‘07

10. UK Six Sigma Benefits - $ I & MR Chart for Time per transaction – UK Online Payments • Time per transactions has come down to 41 seconds against a target of 2.85 minutes. • Total time spent daily on processing UK On-Line payment transactions is 48 minutes as compared to 6.63 hrs. in Define phase. Volumes have doubled during this time Summary of Six Sigma Project Benefits Average Volume has gone up from 70 in Jun ’06 to 120 in Jul ‘07 • Financial Benefit of $79,000 • FTP automation done free of cost • Process is virtually automated so completely error free • FTE time freed up due to the project will be utilized in cross sell / sales activities, benefits of which will be felt in the future

11. Appendix

12. Establish CTQ Characteristics Project Scoping & Elevator Speech In Scope • Fast cheque / online remittance received by UK / US / UAE NRI customer • Automation / system enhancements at NRI centers • CAS – Chennai • Overall turn around time Out of Scope • Remittance received by NRI customer’s other than UK / UAE / US • Telegraphic transfer’s • US Online transfers Elevator Speech : NRI is a growing business and the team is looking to grow it’s customer base by double by end of 2006. Remittances are a key hook to increase the NRI business. Current daily processing time for fast cheque / on line transfers customer instruction is ; US – 9.68 min., UK – 9.38 min., UAE – 18.81 min. Target o the project is to reduce the processing time of per transaction by 50% in US / UK / UAE NRI centers for Fastcheque / On line transfer’s / customer instruction combined.

13. Establish CTQ Characteristics Arriving at the Internal CTQ CTQ Drill Down Tree – Reduction in turn around time of Fast cheque / Online transfer NRI inward remittance Business CTQ Customer CTQ Project CTQ Process CTQ Volume Proofing / Surge in volumes Processing time Volume proofing / Turn Around Time & Attractive NRI product Reduction in processing time Manual effort involved in processing Faster Processing / Increased customer satisfaction Streamlined Process / Reduced work load General Specific

14. D M A E C Target Validation Statistical validation of Target US UK UAE Target set in minutes / transactions are statistically significant as P < 0.05

15. D M A E C Engineer Summary • Summary : • UAE – All solutions are implemented and new process flow is up and running. • UK – GWIS is implemented for account opening and soft copy of internet payments is available. End to end process is 95% automated. • US – GWIS installation is in progress. Soft copy of internet payments is available and is to be migrated to CAS by end Jul ’07.