Post on 14-Dec-2014
description
BusinessReengineering
& Quality
“Moving at the Speed of Change”
Kaizen in Financial ServicesKaizen in Financial Services
Business Re-engineering and Quality
WCBF Presentation and Discussion
10/15/09
4th Annual WCBF Global Lean, Six Sigma and Business Improvement Summit & Industry Awards
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Kaizen DefinitionKaizen Definition
Kaizen (Japanese) = “To Make Better”
Keys to Kaizen Success Small incremental changes that add up to big improvements Usually low-cost / no-cost solutions that can be implemented every
day Becomes a philosophical shift in doing work, constantly looking for a
better way to eliminate “waste” in a process
Kaizen uses Lean to target the 8 wastes Overproduction of work in process Waiting Transportation of files/documents/information Non-value-added processing Excess finished inventory Defects Excess people motion Underutilized people
95% Non-Value
Added
5% Value Added
Typically, 95% of all lead time is non–value added
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Kaizen at homeKaizen at home
■Toast - Simple process- Everyone knows how to make toast
■How long does it take you to make toast?
■How fast could you make toast?
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Kaizen at HomeKaizen at Home
■Potential improvements- Where is the bread stored?- Where is the butter stored?- What type of “butter” are you using?- What type of bread is the customer wanting?
• How do you know?
- What type of toaster are you using?- How do you know what the optimal time is?- What else could you be doing during the actual toasting?
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Kaizen (PREP) at PershingKaizen (PREP) at Pershing
Pershing is a member of every major U.S. securities exchange, and its international affiliates are members of the Frankfurt, Irish, and London Stock Exchanges
Offer a comprehensive network of facilities around the world, which enables us to support financial organizations in approximately 64 markets and deliver dependable, 24x7 customer service
Over 5,000 associates who are highly focused on supporting the needs of our customers
Founded in 1939, Pershing, a BNY Mellon company, is a leading global provider of clearing and financial business solutions
Service Excellence
Operational Support
Trading Services
Flexible Technology
Investment Solutions
Practice Management
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10
9371
4 8
Black Green Lean MBB Executive Belt
2008 Total Six Sigma Belt Certifications7% of total headcount
Six Sigma DMAIC
Lean Sigma
Kaizen – Rapid Improvement
Process Excellence Program
Over 300 projects and 800 employees engaged since inception
Over 300 projects and 800 employees engaged since inception
Quality at DTCCQuality at DTCC
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Kaizen (PREP) at PershingKaizen (PREP) at Pershing
Pre-Event Planning PREP Event Post-Event Follow-Up
DMAIC Stage
Define, measure Measure, analyze, improve
Improve, control
Goals To define project objectives and gather initial project data/information
Analyze top root causes, and develop improvement actions
To implement solutions and develop plan to ensure long-term control
Key Results Identify participants, schedule meetings, gather initial data
Identify key customer tasks, analyze defects and process, generate and refine solutions
Finalize improvements, receive management approval, implement improvements
Actual Hours
2-6 hours 4-16 hours 2 hours to wrap up, additional hours based on complexity of improvements
Timeframe 1-2 weeks prior to event
2 weeks 1 week to wrap up, additional weeks based on complexity of improvements
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Improvement Matrix – Selecting the Project ApproachImprovement Matrix – Selecting the Project Approach
Focused Project
Focus: Improve key sub-process
Goal: Big effectiveness / efficiency improvement
Lead: Green Belt / Yellow Belt / Project Mgr.
Tools: Blended methodologies, best practices, change management
Source: Corporate Goals, Process Excellence, Business Performance issue, Regulatory/Risk concern, Green or Yellow Belt certification requirement
Reengineering
Focus: Radical Process Change
Goal: Dramatic effectiveness improvement
Lead: Sr. Leader or Black Belt
Tools: Benchmarks, blended methodologies, external experts, change management
Source: Corporate Goals, significant Regulatory or Risk concern
Kaizen
Focus: Small issue with sub-process
Goal: Resolve issue / make improvement
Lead: Process Owner, Kaizen Facilitator
Tools: Basic tools – blended methodologies
Source: Process Excellence, Business Performance issue, Yellow Belt certification requirement
Problem Solving / Process Fix
Focus: Structured continuous process improvement
Goal: Continuous effectiveness / efficiency improvements
Lead: Kaizen or Brainstorming Facilitator
Tools: Basic tools - blended methodologies
Source: Process Excellence, Business Performance issue
Lo
w
Co
mp
lexi
ty o
f P
rob
lem
/ R
isk
Hig
h
Narrow Scope of Problem Broad
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Kaizen (PREP) at PershingKaizen (PREP) at Pershing
■Six Sigma DMAIC projects too lengthy
■Resource commitment difficult to sustain
■Training and Green Belt mentoring efforts not cost effective
■Needed a quicker, more effective way to drive change
PREP (Pershing Rapid Enhancement Process)
Is a short, intensive workshop
to identify process improvements and implement controls that
ensure long-term success
Why PREP at Pershing:
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Kaizen (PREP) at PershingKaizen (PREP) at Pershing
■Completed eight PREP sessions targeted around Service Center, our online transaction application
■The goals of these sessions were to:
1. Reduce transactions sent to Pershing as Not in Good Order
2. Streamline workflows to minimize Target Service Level breaches
3. Improve accuracy by reducing reopened transactions
What We Did:
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Internal Partnering Initial Events Executive Exposure
Kaizen Introduction Enterprise Deployment SOP
Events in all functional areas Additional trained Facilitators Kaizen as a part of corporate
vocabulary
Self hosted events 5-10 events / quarter External engagement
Deploying Kaizen at DTCCDeploying Kaizen at DTCC
Reducing time to pay invoices
Identifying customer call requirements
Streamlining securities processing
Eliminating manual announcements of historical issues
Streamlining Return of Over Payments
Designing an automated Proxy receipt
Identifying IT request completion
Designing a process for on-boarding compliance
Customer Satisfaction Survey Deployment
Eliminating Redundant Automation Solutions
Past events at DTCC
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Kaizen (PREP) at PershingKaizen (PREP) at Pershing
■Tangible Benefits:- Not in Good Order transactions currently down 30%- Target Service Levels performance improved and targets were tightened- Transactions reopened by the customer decreased 55%- Improved project cycle time
■Intangible Benefits:- Increased customer satisfaction- Improved quality culture and knowledge- More enjoyable Six Sigma experience- Increased interest in process managers for analysis
Results:
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Kaizen (PREP) at PershingKaizen (PREP) at Pershing
■Additional analysis being done with other Service Center teams
■Technique added to Six Sigma training curriculum
■Analysis to be performed for other transactional systems
What’s Next:
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Kaizen Cycle @ DTCCKaizen Cycle @ DTCC
■ Identify potential issue■ Discuss the idea with your
manager- Collect data on the issue
- Identify all interested parties
■ Contact BRQ to facilitate a Kaizen event
■ Complete any follow up activities (additional event identification)
Identify follow up activities
Complete Event
Identify Issue
Discuss and Prepare
Tips to identify Kaizen opportunities• Does a process seem too complicated?• Does it feel like there is a straightforward
solution?• Do you see non-value add (waste)
activities in a process?• Are multiple departments involved?• Is a rapid implementation or fix needed?
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Become a Kaizen FacilitatorBecome a Kaizen Facilitator
■ DTCC Certification- Internal training
■ Experience- Previous facilitation and team leader
- Manager level or higher
- Empowered change agent
■ Training- Participate in an event
- Complete the Train the Trainer
- Co-Facilitate and event
- Facilitate an event with a mentor present