1. Business Process Management
CORE PROCESSES:
Customer
Acquisition
Order
Confirmation
Employee Development
Underwriting
Collections
UNDERWRITING SUB PROCESSES:
Application Input
Preliminary Decision
Verification
Final Decision
Document Preparation
OBJECTIVE:
Identify & Focus on High Impact / Low Performing processes
Scope for Success
Financial Impact

2. Problem Statement –
In 2000 US Consumer accelerated the centralization of Real Estate approvals. The time it took from receipt of application to preliminary decision was excessive in the eyes of the customer (stores and end customer).
Stats:
Cycle Time: days on average

3. Define / Measure…
What’s Important to the Customer (Voice of the Customer)?
We found out … Speed and user friendly processing must be balanced with Quality Decisions
SPEED = 3 hours
We believed Quality Decisions = Quality
Result Quality Decisions at high costs
and slow speed
What to measure?
Cycle Time
Operational Definition:
Date and time Branch faxes initial doc to Date and time prelim decision is communicated to Store
Defect = Greater than 3 hours
Sigma = 1.6
242 defects out of 555 opportunities sampled
Defects

4. Analysis… Process Analysis: Root Causes:
What are the significant root causes of our inefficiency?
Process Analysis:
92% of cycle time was non-value added
49 minutes to deliver fax to analyst
95 minutes before analyst first contacts branch
Documents can sit in pending up to 4 days
Root Causes:
Staffing Levels at Branch & LRAD

5. Solutions / Results… 1st Set of Solutions:
Lite Doc Program
Revamped Work Flow
Next Generation of Improvements:
Fully Matrixed Underwriting Process
Department Reorganization
Reduced Cycle Time by 33% (3.46 days)
Sigma rating increased from 1.6 to 2.1
Cost Savings of $400,000 annually
Changed our view of the customer
Reduced Cycle Time by 48% dropping it to 1.81 days
Sigma rating increased to 3.0
Increased Capacity
Improved Teamwork