Business Process Management

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Business Process Management
CORE PROCESSES
Customer Acquisition
Order Confirmation
Employee Development
Underwriting
Collections
UNDERWRITING SUB PROCESSES

• OBJECTIVE
• Identify Focus on High Impact / Low Performing
  
  processes
• Scope for Success
• Financial Impact

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Define / Measure
Whats Important to the Customer (Voice of the
Customer)?
We found out Speed and user friendly processing
must be balanced with Quality Decisions SPEED 3
hours
We believed Quality Decisions Quality Result
Quality Decisions at high costs and slow speed

• What to measure?
• Cycle Time
• Operational Definition
• Date and time Branch faxes initial doc to Date
  and time prelim decision is communicated to Store
• Defect Greater than 3 hours
• Sigma 1.6
• 242 defects out of 555 opportunities sampled

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Analysis
What are the significant root causes of our
inefficiency?

• Process Analysis
• 92 of cycle time was non-value added
• 49 minutes to deliver fax to analyst
• 95 minutes before analyst first contacts branch
• Documents can sit in pending up to 4 days
• Root Causes

Staffing Levels at Branch LRAD
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Solutions / Results

• 1st Set of Solutions
• Lite Doc Program
• Revamped Work Flow
• Next Generation of Improvements
• Fully Matrixed Underwriting Process
• Department Reorganization

• Reduced Cycle Time by 33 (3.46 days)
• Sigma rating increased from 1.6 to 2.1
• Cost Savings of 400,000 annually
• Changed our view of the customer

• Reduced Cycle Time by 48 dropping it to 1.81
  days
• Sigma rating increased to 3.0
• Increased Capacity
• Improved Teamwork