Lean Manufacturing

Lean Manufacturing in Banking

Lean Manufacturingin banking does not always mean what you think it may mean. People usually relate lean to a one piece flow operation. They often connect it with manufacturing or production in some business or company. However, if you actually

comprehend the fundamental principles of Lean Manufacturing, you quickly realize that it is simply an efficient and smart waste reduction system. Therefore, when looking at a banking process, we aren’t talking about transforming the client transaction process into one piece flow system, but instead to reduce the wastes connected with it.

When I’m thinking about a waste in banking, any loan process instantly springs to my mind. To begin with, all loan documents eventually end up with some underwriter. Absolutely nothing is done over the internet. This implies all the information must be filled in, and then sent to another individual to check out. This really is dealing with these records two times.

Next, the documents are faxed back, for us to check them out once more to ensure that they are OK, or to mend any problems. Then, towards the end, you have to sign everything, and then send it back yet again. What I’m saying is, this stuff was dealt with like 3-4 times, and you wiped out a baby oak tree along the way! Enough of that! The easy solution is to make use of some kind of automated signature. No documentation till the end (only if required).

That example is among those that drive me nuts with consumer or business banking. Yet another one is all of the different times it seems individuals are being required to enter their details for something. I kind of realize that due to the money involved you’ll want to ensure things are done right, but then at what expense? You do not get to charge me any extra whether you enter my details once or 5 times. Should you do something more often than once you’re actually squandering valuable work resources that may be designated some other place.

Another one is the drive through. Anytime I’m there, the individual got my canister in the shoot, that’s pretty cool anyways, and then should stand up and walk to some other place to begin this financial transaction. Why can’t they simply do this at the place where they’re seated? This is simply bad designs and setting up. Among the first things you must do to determine the waste you’ve in your financial institution is a value stream map. This can demonstrate all of the several different occasions you wind up doing something, and just how often you’re moving to accomplish something. Value stream mapping isn’t challenging to do, and there are a few decent resources available. With all the banking problems taking place these days, I strongly believe Lean Manufacturing in banking is really a subject that requires more consideration. And, if this economic collapse continues, and the financial market struggles, you will notice more banks starting to consider the Lean Manufacturing process in great depth.




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