Lean Six Sigma Projects in Financial Services have become all the more crucial after the global financial crisis. This sector, like any other, has ample scope of improvement. But there are certain unique characteristics that makes it different from any other industry.
The operational processes are complex, and are generally non-transparent. Secondly, rather than tangible deals, these services process requests. Production and consumption of services go hand-in-hand. Thus, these services are perishable. And most importantly, the variable nature of the financial services, makes each service exclusive.
Due to these very same reasons, process improvement projects for financial services have to face certain amount of challenges. For example, when measuring the quality of service, the intangible and unique service each customer receives, makes it a difficult task for process experts.
Customers often have to wait to receive a service at a financial sector. Unlike manufacturing, there are no inventories that customers can make use of. Services are distinctive and consumable. And therefore, the work in progress, takes up a significant portion of the efficient time in the business. This sector also receives a huge amount of rework due the initial demand not being met appropriately.
Lean Six Sigma Projects in Financial Services aim at cutting down the wastes in the processes by implementing the first-time-right principle. Reducing failure demand, is one of the key areas that can lead to process improvement in financial services.
Visual management techniques consolidate the process, and increase the transparency between departments. Reducing the lead time to applications and policy renewals is another sector that experts and champions target at.
In a nutshell, financial services offers a good scope for operational improvement, and implementing Six Sigma techniques can help make this industry more efficient than it already is.