Welcome to Qimpro Convention 2010

HDFC BANK, Mumbai

LOBBY MANAGEMENT AT FORT BRANCH

Introduction

HDFC Bank, incorporated in August 1994, has a network of over 1412 branches spread over 528 cities across India. All branches are linked on an online real-time basis.

The bank's expansion plans take into account the need to have a presence in all major industrial and commercial centres where its corporate customers are located, as well as the need to build a strong retail customer base for both deposits and loan products.

The bank has a dedicated Quality Initiatives Group (QIG) which provides solutions to the business groups through process improvement techniques (such as Lean Six Sigma, Kaizen, 5S, etc).

Project summary

Number of customers present in the lobby of any branch at any point of time is the key to defining “Lobby Crowding”. Customer walk-ins into retail branch pose unique challenges depending on the size, customer base as well as customer profile of the branch, types of transactions, etc. This also has a direct relationship with the customer experience and affects customer satisfaction.

IDENTIFYING THE PROJECT

The Quality Initiatives Group (QIG) conducts periodic reviews with business heads on pain areas/business improvement areas, the list of which are collated at an organization level and prioritized using "Project Prioritization Matrix" considering impact in terms of customer service, revenue, cost, efficiency and profitability.

QIG team shortlists projects and seeks approval of steering committee for execution.

"Reduction of Lobby Crowding @ Fort Branch" has a direct impact on customer service and profitability. This project had a score of 132 which meets the qualifying criterion (>100).

Problem Statement

	Higher end-to-end TAT (Wait time + Transaction time) of more than 5 minutes for all key customer transactions against standard defined TAT of less than or equal to 5 minutes.
	Crowded lobby on account of high footfall. Lobby crowding is measured with the help of transaction to customer base (TCB) ratio (Average number of daily transactions per customer base X 100). TCB ratio at the start of the project was 7.44

Mapping the "AS IS" Process

The "AS IS" process for key “Teller” related transactions as well as “Welcome Desk” related queries and instructions were mapped.

Measuring the Baseline

Data collection was done for primary data and secondary/historical data including month-wise volume/trend of various transactions in the form of Teller Transaction Report (TTR) and Branch Journal Report (BJR) collected.

Gage R and R short form method was deployed at pilot stage, conducted by 2 independent team members for each type of transactions. This was followed by observing/capturing operations/transactions independently.

The baseline performance was quantified as follows:

Transactions relating to Cash Deposit, CBDT Challan submission, Cash Withdrawal, Pass book updation & address changes taking more then 5 minutes.

TCB ratio of 7.44.

Diagnosing the Causes

For Teller related key activities, a Fishbone diagram was prepared based on the brainstorming session held with the team as well as on the observations captured during T & M study. FMEA was developed for Teller cash withdrawal transaction.

For Welcome Desk related activities, two separate Pareto charts were prepared - One each for queries and instructions.

Key factors affecting the pain areas were identified with the help of combination of primary as well as secondary data. A brainstorming session was organized involving all stakeholders to decide on the key causes to be targeted in order to resolve the pain areas; and inputs received from key process owners during brainstorming sessions were considered for implementation depending on their importance.

Validation of root causes were done using statistical analysis on past (historical) data.

Remedying the Causes

Brainstorming session for solutions was organized involving entire branch staff. Findings were shared for each type of transaction. The session resulted in a number of ideas/suggestions for solutions.

Solution selection matrix was deployed for selecting the best solutions.

	The solutions were bifurcated into short-term and long-term.
	Solutions were also weighed in terms of capital requirement/approval required.

It was also direct implementation of other short listed solutions as the project was restricted to one branch.

Implementing the Solution

Project plan to track implementation of actionables and milestones for implementation.

Dashboard on status of actionables discussed during Tollgate review in steering committee.

Short term solutions having big impact got implemented first. There were a few long term solutions, which require time and/or resources for implementation. These were taken up for implementation at a later stage.

Holding and Sustaining the Improvements

	Necessary internal changes to accommodate additional teller counters have been made and are permanent. Operational changes have been documented in the form of updated SOP and communicated to all concerned.
	FMEA was updated and RPN revised along with team. Process control plan established for ongoing monitoring of the process.
	Monthly MIS on the Ratio. This helps in keeping a tab on number of transactions being performed vis-à-vis customer base.
	Target vs Actual - Monthly review of Phone banking co-ex for direct banking channel conversion
	Fine-tuning: Reviewed new practices/processes post implementation with concerned employees to know effectiveness of the same. Incorporated necessary changes wherever felt necessary.

Benefits

Tabgible Benefits

	Benefit = 105 lakh/annum
	Investment (One time) = 5 lakh
	Net Benefit / Savings = 105 Lakh - 5 Lakh = 100 lacs per annum on current business volume, expected to increase with increase in business volume.
	Above savings is primarily on account of reduction in transaction time of a few transactions as well as on account of reduced number of transactions vis-à-vis increased customer base (Ratio).

Intabgible Benefits

	Average end-to-end customer TAT for all transactions/activities came down to below 5 minutes
	Enhanced customer satisfaction due to reduced wait time.
	Effective crowd management, resulting in better lobby management (faster customer turnaround).
	Branch staff less stressed - especially cash tellers.
	Better customer service - especially Welcome Desk PB.
	Active diversion of customers to Phone banking.
	Enhanced manpower productivity.

Authors

	Ripal Sheth, Project Manager
	Harinakshi Atul Vaikul, Project coordinator

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