IMPLEMENTING SIX SIGMA VIA TOTAL QUALITY MANAGEMENT

Improving process method in Bank Simpanan Nasional - A Case Study -

Opening : The Presentation we provide is a problem occurring at the counter in Bank Simpanan Nasionals (BSN) mini branch in Merbok, Kedah and how these problem will be solved based on the concept of six sigma.

Situation 1
Daughter of a deceased account holder approach the counter officer to closed her mothers account and withdraw the money in Merbok, Kedah. Based on the current Procedures, all signature card of an account must be kept by the main branch in that state. In this case, Alor Setar, Kedah

The customer went home and write a complaint letter to Customer Service Division in BSN HQ, Kuala Lumpur.

Situation 2
The complaint had drawn the attention of the BSN Operation Director and bring this matter to discuss with the Risk Management Director who handles the quality, procedures and R&D.

BSN have adopted TQM program, the Six Sigma approach and quality values in the working environment since 2004. In brief, TQM emphasizes continuous improvement, a philosophy of "doing it right the first time" and striving for zero defects and elimination of all waste. It is a concept of using quality methods and techniques to strategic advantage within organisation. The main important thing is that the organisation has to sustain and dicipline in quality practices.

While Six Sigma is the approach that seeks to find improvements and eliminate causes of defects and errors in manufacturing and service process by focusing on outputs that are critical to customers and results in a clear financial return for the organization.

Customer loyalty, internal and external customer satisfaction and business performance are keys to the success of our organization. All of these factors are essential to maintain the existence of BSN as a government financial institution

With TQM approach, they should formed committee consisting of subject matter experts from various job functions or cross functional processes. Let they viewed this problem as a whole process from attending customer at the counter until the customer leaves the counter with satisfaction. Next, Six Sigma approach is used to identify deficiencies in each step in the process of death claims of depositors. They practice the DMAIC problem-solving approach.

Customer Counter/Branch Main Branch Archive/Store Manager Mailing

Time Cross Function Flow : Deceased Acc Holder

Define, Measure, Analyze, Improve and Control.

Identify priorities and needs of customers. Identify the internal and external policies involved. Identify the impact on the organization, the business objectives and quality of service. Identify the number of complaints received. Identify the current processes involved and the turn around time (TAT). Identify defected step or steps involved in the current processes and the amount of defects. Determine causes of errors or defects by using the Ishikawa Diagram (Cause & Effect Diagram a.k.a. The Fish Bone Diagram). Understanding the causes. Optimize the current process based upon data analysis. Correct or re-evaluate potential solution. Use of FMEA or Poka Yoke technics. Define and validate monitoring and control system. Develop standard operating procedures. Verify benefits, cost-savings, avoidance and profit growth.

Define

Measure

Analyze

Improve

Control

Machine

Environment

Policies

Methods

Employee

BSN is using monochrome terminal or dumb terminal. BSN management should invest in the latest technological by using document scanner, and multimedia terminal base. Risk Management will distribute the latest regulation, directives and guidelines. Any request for information, can be viewed and print the documents from the server and

attached to the application.

All new customers information should be keyed in and stored during opening of account. The using of biometric thumb print scanner will be linked to the correct and specific customers account. As for the existing customers, all information needs to be updated into the system when the customer present at the counter.

The lady in Merbok should have no problems to take her mothers money in

BSN Mini Branch anymore.

Thank You