Application of Lean Six Sigma Methodology in Design and Improvement of Financial Services

Abstract

Since the day of its inception at Motorola Inc., Six Sigma methodology has been widely used in process improvement by companies all over the world including financial institutions. Users of Six Sigma strive to achieve competitiveness through improving processes. In recent years, “Lean” principles have been merged with the Six Sigma approach in what is known widely as Lean Six Sigma. Six Sigma is not only applicable to manufacturing but also to the service sector. With growing competition in the financial services sector, Six Sigma principles can be used to cut costs, increase efficiency and thereby help companies to stay afloat in the global economy. This paper will try to outline how Lean Six Sigma principles can be used to continuously improve service operations with special emphasis on financial institutions such as banks, insurance companies, individual pension systems, brokerage firms and others. A demonstrative case is also provided on how the principles can be applied in the context of a pension company.