SUPPLY CHAIN

MANAGEMENT
SIX SIGMA AT BANK

Prepared by:
Shahjadi Anika
ID: B1405146 SEC: A

Prepared for:
Nikhil R. Dhar, Ph.D
Professor, IPE dept , BUET
 1 Introduction and
problem background

2 Knowing Six sigma

Core
Implementation of
OUTLINE 3 six sigma and
analysis

4 Findings and
Discussion

5
Conclusion
Introduction and problem background
Problem background :
Brac Bank, Banani branch is facing huge customer waiting
line.
They are currently using just do it method
Regular (average) transaction:
Branch employee and layout
11% deposit check
22%
deposit cash
Teller no. 2
15% withdrawal cash
New account officer : 1
billpayment
Branch officer: 1
18%
17% check encashment
Branch manger : 1
others
17%
 Knowing six sigma (DMAIC)
Six sigma is a set of tools or techniques for process improvement
and DMAIC is one of its methodologies
Define: the problem and goal
Measure: the baseline process before it is
improved
Analyze : the possible root causes
Improve: improve the identified process

Control : Control for future sustainability

 Applying six sigma in Brac bank
Define:
Project scoping Define problem and goals
Focus on the necessary Finding out relevant data of customer
issue. Ex : Causes Waiting complaints regarding waiting line then
line set a goal like, reducing the incident
numbers.

Measure
Collect data from trend of customers for further analysis purpose
Measure the customer entry and exit time
Identify problem areas and potential causes behind it by process mapping
 Applying six sigma in Brac bank
Process mapping insight:

Client Client filling Client falls Teller process Client

entry up form in line transaction exits

Line wait time OTC processing

time
Total service time

The line wait time computation formula:

Client arrival per hour

X Avg. Client
Client service per hr X number of tellers servicing time
 Applying six sigma in Brac bank
Trend analysis:
It is done to confirm how that long line wait time happens and
possibly is what situation.

Data collection plan :

Find out possible or related causes of client wait line
Entry Time OTC OTC Actual Trans. Trans. Teller Compou > 30
period process code -nd line
start ends Type wait
mins
time
9:OO 0900- 9:00 9:01 1.00 1 Deposit Tenured 1.00 No
am 1000 - check
10:32 1001- 11:0:44 11:30:53 4 4 Check- New 58.88 yes
am enchash
1100 ment
 Applying six sigma Analysis phase
Client arrival trend
Work interruption

No system based time

Inefficient arrival
bandwidth Need to fill up bank form

Slow during trans Clients with Line up with 1 transaction client

system multiple
response Client returned transaction Peak arrival at 11 AM
form outside
Skipped Most arrival at 11 AM
client
Accommodated transaction VIP Peak and non-peak day Line wait
more than
30 mins
Availability of branch ATM Number of tellers
Additional reserve Availability of reserved
capacity when needed branch teller
New hired or tenured teller
Tellers productivity level difference OTC capacity
Manual override Identify root
Existing branch cause (Fish bone
control policy
Inter branch info diagram)
OTC processing time
 Applying six sigma in Brac bank
Findings:

a) Processing time of new hire teller is slower than the

tenured teller
b) Long processing time of high volume transaction types : Bill
payments, Check encashment , cash withdrawals

Improve Control
Take long-term solution to Design a sustainable performance
improve current condition chart
Regular follow-up to the Maintain a trend graph to follow-
problem arena up
 Discussion & Conclusion
Few steps that Brac bank should consider :

As more than 10 client in a line causing trouble , so each line of

client should not be more than 10.
As new hire employees processing is slow , so they should be
coached.
Branch manager can call reserved pool teller when crowd rise
Teller average processing time should be monitored every 6

Conclusion:

Banks Just do it method cant find out over all problems and
has lots of errors in it. So bank should regularly apply Six
Sigma method for better performance
THANK
YOU !