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HSBC Credit Card Issuance Cycle Time Reduction

D. M. A. E. C. HSBC Credit Card Issuance Cycle Time Reduction. Champion: Jim Folaron Support Staff: Mahboob Hussain, Mukta Kapur, Prashant Goenka, Richard Mitchum. Note: Although based loosely on real data and situations, this is a fictitious set of project data. D. January 1, 2007.

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HSBC Credit Card Issuance Cycle Time Reduction

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  1. D M A E C HSBC Credit Card Issuance Cycle Time Reduction Champion: Jim Folaron Support Staff: Mahboob Hussain, Mukta Kapur, Prashant Goenka, Richard Mitchum Note: Although based loosely on real data and situations, this is a fictitious set of project data.

  2. D January 1, 2007 Credit Card Issuance Cycle Time Reduction M March 15, 2007 A May 1, 2007 Champion: Jim Folaron Process Owners: Richard Mitchum Team Members: Mukta Kapur, Prashant Goenka Master Black belt / Black belt : Mahboob Hussain Quality Leader: David Bobeck, Michael Dougherty E May 31, 2007 C June 30, 2007

  3. D M A E C Project Background HSBC Credit Card Services issues 1.2 Million cards every year. Customers submit card applications via branches, internet and phone. Customers have stated their dissatisfaction with the amount of time between submitting their application to receiving their HSBC credit cards. An attribute of the HSBC brand is excellence in customer service and this current process for delivering our credit card is not in alignment with that strategy. Additionally, four percent of customers show zero account activity and when surveyed stated they are using a competitor's credit card. If we do not make changes we will continue to lose market share. HSBC needs to look at improving the process to reduce turnaround time between application and delivery of our card. The assigned HSBC Six Sigma Team must reduce the turnaround time, which will allow HSBC to increase retention, customer satisfaction, help retain and increase revenue streams, and increase brand recognition.

  4. D M A E C S I P O C Suppliers Inputs Process Outputs Customers Application Reviewed / Decisioned Define - Develop team charter, Specify Customer Requirements, Complete High Level processes Map Business Case: Problem Statement: An attribute of the HSBC brand is excellence in customer service; our current process for delivery of our credit card is not in alignment with that strategy. Customers have stated their dissatisfaction with the amount of time it takes to receive their card. 4% of the potential credit card customers show zero account activity and when surveyed, they admit to using a competitors card. Currently, customers receive HSBC Visa or MasterCards in an average of 14 days from date of application. This is below customer’s expectations and is resulting in lost business opportunities. Goal Statement: S Suppliers I Inputs P Process O Outputs C Customers Reduce average delivery time by 50% by June 30, 2007. This must be accomplished without increasing current cost per unit. • Customer • HTS • 3rd Party Credit Agency • Operations • L&D • Finance • Marketing • Legal/Compliance • Plastic CC Mfr./Distr. • Telemarketer • Personal Information • Systems/Applications • Credit Report • Processing • Training • Financial Data • Campaigns/Flyers • Regulations • Plastic Card • Cold Calling • credit card • inserts • Application status • Approval rates • Status reports • Envelopes to mail • Production report • Delay reports • Credit Applicant • HSBC branch • Telemarketing Service manager • Mail vendor (PSI) • HSBC Managers • HSBC Managers Project Scope: HSBC labeled Visa and MasterCard. Excluded: Rush orders, rejected applications, private label (RS cards, activation of card. Process Start Process End 1 2 3 4 5 Team: Approved applications submitted for production Production scheduled Plastic created and inserted into envelope Envelope mailed This project will include team members from Las Vegas, Salinas, Buffalo and Chicago. Team members will represent credit operations, marketing, plastic creation, vendor relations, HSBC Bank. Defect Definition: Credit card delivery that exceeds 7 business days

  5. D M A E C Risk Assessment

  6. D M A E C CTQ Tree

  7. D M A E C Stakeholder Assessment

  8. D M A E C Measure – Analyse the Process, Remove Measurement Variation, Determine Process Capability. Problem Statement Data Collection Plan Currently, customers receive HSBC Visa or MasterCards in an average of 14 days from date of application. This is below customer’s expectations and is resulting in lost business opportunities. Currently 20% of our cards take more than 7 days to be received (2.25 Sigma) Process Mapping CTQ Tree • Lessons learned: • Four channels of input • One channel (Mail) takes longest • 45% of applications are approved • What we need: • Approval on measure tollgate • Clarification on scope

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  10. D M A E C Process Map

  11. D M A E C CTQ Tree

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