De-clogging Process Highway

Abstract

Our organization processes loan applications and disburses loans to the customers. Our constant endeavor is to process the file in the least turnaround time. The ability to decide on case faster depends highly on the preceding processes of checking of files for completeness, data entry in to the core system, analysis of bank statements, computation of eligibility and getting internal or external verification done. The project is aimed at improving the turnaround time for pre-approval processing of files. A benchmarking study was carried with the process of traffic management where similar problems exist by visiting the Gemba. We observed various measures taken to control traffic at peak hours like use of (1) Freeway / Ring roads: In most cities ring road is constructed to allow for traffic which bypasses congested areas. We implemented a centralized CPA (Credit processing agent) shop for mandatory data entry. This enabled us to balance different volumes at our 40 odd branches. (2) Junction Control: In some cities we identified areas where roads were unidirectional during certain times of the day and would go in the opposite direction at other times based of traffic. In our organization context we initiated training programs to improve the competency of branch teams to handle multiple process/ products. (3) Making information available: Congestion information helps in diverting vehicular movement on alternate routes. In our company, specific information / status pertaining to each file was not available on a real time basis. This information was stored manually and would take a lot of time and effort to collate. Reports were formed which collate information and case specific requirements are shared with all the stakeholders proactively. To ensure that this effort is sustained we formed a Credit Operations Team with a defined organization structure. PDCA (Plan Do Check Act) approach was followed in executing the project; pilot studies were conducted at Mumbai to check effectiveness of the model, post validation the changes were replicated across branches. The project has resulted in 17% improvement in cases meeting turnaround time for processing along with 33% improvement in productivity as compared to the last Financial Year.