Press "Enter" to skip to content

Improving bank call centre operations using six sigma

Improving bank call centre operations using six sigma

Rahul Gautam

Department of operation management, IBS Mumbai, India

Haven't found the right essay?
Get an expert to write you the one you need
GET YOUR PAPER NOW

Abstract

First riches bank had redistributed its client intelligent administrations tasks to include client calling administrations around five years back. In this exploration paper we show the utilization of lean six sigma in a call focus of bank industry and this investigation dependent on essential information from genuine undertaking. This examination paper depicts enhancement in the activities of the call focus owing to lean six sigma increment in first call goals proportion, decrease in administrator turnover and streamlining of procedures. The reasonable ramifications of lean six sigma into the call focus day by day activities the board. Albeit Lean Six Sigma has been to an incredible degree compelling over the latest two decades in the collecting part, its relevance to the organization division has been a questionable topic. This examination speaks to its application to a rapidly creating region of the organization part, helping associations in recognizing districts of progression for their Call Centres.

Keywords: Lean, Six Sigma, Call Centre, Quality, Process improvement

Introduction

First Wealth Bank should outsource its customer interactive services operations to Customer Calling Services (CCS) about 5 years ago. First Wealth Bank declared the least volume of 300″,000 calls per year with the rate of $4.50 USD. Over the last two years, the service performance of CCS has deteriorated to such an extent that First Wealth Bank is considering withdrawing the contract. CCS has been collecting the data on the duration the representatives were available to answer the calls and the hold time. The data for the last few months is shown in Table 1. The performance measures that were of interest to First Wealth Bank were:

路 Provide first call resolution to at least 75% of calls

路 Resolve minimum 90% of inquiries within 5 days

Furthermore, First Wealth Bank was monitoring the data on number of people who were unable to get answers from CCS.

The Quality Assurance business conducts routine examinations of recorded conversations between the callers and representatives. A rating based on the scale of 1-5 is assigned to the calls based on friendliness, accuracy, and suitable advice given to the callers. The table below shows the description of ratings:

Table 1. The description of rating

Rating

Definition

1

Perfect response

2

Good response

3

Average response

4

Bad response

5

Very bad response

As been observed that the quality check results of the two QA. Therefore data for 20 voice recordings were collected to verify the repeatability and reproducibility of QA projects. Table 2 shows the results of their assessments for each voice recording.

A couple of other problems with CCS are their inability to hold on to the qualified workforce and the time it takes to hire experienced individuals. CCS decides to hire an expert on Six Sigma methodology to help them improve the call centre operations and to improve the production to a level that is acceptable to the client. CCS also wants to ensure that the Average Handle Time (AHT) is maintained during the course of this project. CCS has 6-8 months to turn around the performance of the company or potentially lose contract.

1.1 What is six Sigma?

Lean Six Sigma is a business improvement procedure that means to expand investor esteem by improving quality, speed, consumer loyalty and expenses. It accomplishes these by consolidating appliances and standards from both Lean and Six Sigma. Lean and Six Sigma have pursued freeways since the 1980s when the terms were first strenuously coded and characterized: Lean began in Japan (inside the Toyota Generation System), and Six Sigma started a presence in the US (inside the Motorola Research Focus).

Lean is a procedure improvement approach used to convey items and benefits better, faster and at a lower cost. Womack and Jones (1996) characterized it as “an approaching to indicate the esteem, line up esteem making activities in the best succession, lead those exercises without interference at whatever point somebody demands them, and perform them frequently more successfully. To put it clearly, lean believing is lean since it gives an approach to perform increasingly more with less.

Furthermore, less鈥攍ess human exertion, less human hardware, less time, and less space鈥攚hile coming consistently nearer to giving clients precisely what they need.”

Six Sigma is an information-driven process improvement procedure used to perform steady and unsurprising procedure returns, decreasing method variety, what鈥檚 more, abandons: Seen 1999 characterized it as “a business procedure that seeks to recognize and dispose of reasons for mistakes or deformities or disappointments in business forms by concentrating on yields that are basic to clients”.

1.2 While Lean is about Speed and Efficiency, Six Sigma is about Precision and Precision:

Lean guarantees assets are crumbling away at the correct exercises while Six Sigma guarantees things are done well the first run through.

Lean Six Sigma appropriates instruments from both tool slots, so as to defeat the two conceptions, increasing speed while additionally expanding precision. Advantages of Lean Six Sigma in the modern world (both assembling and administration) include:

Other essay:   Benificial state bank

Guaranteeing administrations/items fit in with what the client needs (Voice of the Customer);

路 Evacuating non-esteem including exercises (squander);

路 Diminishing the occurrence of deficient items/exchanges;

路 Shortening process duration;

路 Conveying the right item/benefit at the opportune time in the ideal place.

Albeit used to a great degree efficiently in modelling over the most recent couple decades, the use of Lean Six Sigma in the administration section has been less endeavoured and tried, in the middle of fears that the systems in administration ventures don’t loan themselves to the absolute utilization of the arrangement of calculable apparatuses compared with Six Sigma . There are three principal reasons why agencies need to apply Lean Six Sigma:

路 Management method can remain economical and along these lines expensive, i.e. inclined to blunder and along these lines indicating diminished consumer loyalty;

路 Many administration forms are mind boggling and have excessively “work-in-advance” which prompts expanded holding up time a non-esteem included expense;

路 The Pareto System applies to reasonable procedures 0.80 of the postponement is generated by 0.20 of the activities. In this manner improving the speed of that basic 0.20 will prompt a reduction of 0.80 in process duration.

The application of Lean Six Sigma in Call Centres has been considerably more questionable over the most current couple of years, with a few authorities visualizing a set of opportunities, yet with others seeking the achievability of its application to such a situation.

1.3 Why Apply Lean Six Sigma in a Call Centre?

Call Centres are an overall wonder. Nations, for example, the Netherlands, Ireland, UK, Philippines, South Africa and India all have abundant Call Centre businesses. In the US there are larger than 55″,000 Call Centres utilizing roughly 2.9 million specialists. In the UK the share utilizes more than 595″,000 operators in 6324 Call Centres.

The couple noteworthy sorts of Call Centres are outbound focuses and inbound focuses. The most widely recognized are inbound Call Centre tasks. For some, clients, Call Centres are the main purpose of contact with an association and their encounters can assume a noteworthy job in their choice to remain or leave that association. Nearly everybody in their day by day life has had the experience of reaching one of those Centres for an assortment of reasons. In the UK alone, in excess of 10 million clients use phone managing an account.

Outbound focuses are used more in regions, for example, promoting, deals and credit accumulation. In those cases, it’s the Call Centre administrator that reaches the client/client.

In spite of the fact that there are a few contrasts among outbound and inbound call focuses, they each have comparative potential advantages and challenges for the practice of Lean Six Sigma.

1.3.1 Benefits

A portion of the advantages that Lean Six Sigma can convey in a Call Centre is given underneath:

路 Streamlining the activities of the Call Centre: Lean system helps in taking out waste and other non-esteem included exercises from the procedures;

路 Diminishing the number of lost calls: Six Sigma’s main driver examination and speculation testing systems can help with deciding how much time to spend on an alternate sort of calls in this manner giving a manual for the administrators;

路 Better use of assets (both human asset and innovation), prompting a decrease in the expenses of running the Call Centres;

路 Revealing the ‘shrouded industrial facility’: building up the underlying drivers of why clients bring, in any case, can help in uncovering inconveniences further up in the process stream in this way giving advantages that go more remote than the Call Centre itself and enhancing client administration and support;

路 Lessening representatives’ turnover: Call Centres are normally described by high worker turnover, because of the very distressing workplace (Mintel, 2009). An increasingly streamlined task would help with diminishing administrators’ pressure, especially in an inbound Call Centre.

1.3.2 Challenges

Distinct difficulties to use Lean Six Sigma in a call centre conditions are provided below:

路 The constant pace of the activity (usually 24/7) makes it more difficult for key factors of a team to find the opportunity to get connected in projects and Lean Six Sigma practice;

路 The success of a relevant Measurement System Analysis (MSA) is given complex from the natural subjectivity and representation of some call types thus disappointing reproducibility tests among different Call Centre executives;

路 Huge employee turnover, that commonly characterizes Call Centres, execute it more complex for a Lean Six Sigma plans 鈥榯o stick鈥 in the organization.

Generally speaking, the open doors far exceed the difficulties. Call Centres these days are something beyond activities: they are the first, and now and again just, the purpose of contact an organization may have with its clients. Their productive and viable going through auspicious goals of clients’ questions can go far in setting up the organization’s image what’s the more, picture.

2 Lean Six Sigma Projects in Call Centers

Undertaking determination is a basic part of progress: not all tasks might be the appropriate possibility for the utilization of Lean Six Sigma, and this should be remembered while evaluating the activity of a Call Centre. Additionally, extraordinary apparatuses and procedures might be progressively reasonable for an explicit undertaking, contingent upon the nature and normal for the procedure it is attempting to address.

Activities that better loan themselves to Lean Six Sigma share, bury alive, the following attributes:

The focal point of the undertaking is on a procedure that is either not in factual control or outside client particulars. As of now referenced in the presentation, Six Sigma procedures centre around decreasing the variety in a procedure, making them the perfect apparatuses for handling an unfit yet stable process, while the Lean devices centre more around the end of waste and would be the principal port of call for streamlining a temperamental procedure. Needs ought to be given to insecure procedures, utilizing Lean devices to wipe out the squanders and improve the procedure: when it has settled, further developed measurable instruments, from the Six Sigma toolkit, can be utilized to decrease variety and make the procedure able.

Other essay:   Online banking

The root reasons for this has not been recognized yet: it is essential to begin chip away at the task with an unmistakable perspective and with no partiality. Information and hard certainties should manage the undertaking along its way;

Quantitative measurements of the procedure are accessible: absence of measures and neglecting to understand a finished Measurement System Analysis (MSA) (Wheeler and Lyday, 1990) can genuinely risk any enhancement exertion

The procedure’s proprietor is strong and willing to give information and assets: this is

basic for the on-going achievement of the venture, and the procedure proprietor job is talked about in detail in the Control Phase segment.

2.1 Define Phase

A cross-useful undertaking group was made, driven by a Black Belt, with the goal of utilizing the DMAIC (Define, Measure, Analyze, Improve, and Control) Six Sigma achievement system so as to expand the primary call goals proportion. The group perused down the undertaking, distinguishing which explicit territories of the Call Centre and administrations they would concentrate on; an abnormal state process guide or SIPOC (Suppliers, Inputs, Process, Outputs, Customers) (Pyzdek, 2003) was made, trailed by a progressively itemized process outline.

In this paper, we have actual data for calculation and resolving the problem which goes on the bank call centre.

Table 2 Historical baseline data

2.1Process Capability Indices

Process enhancement endeavours, the procedure capacity record or process capacity proportion is a factual proportion of process ability: the capacity of a procedure to deliver yield inside particular limits. The idea of process ability just holds importance for procedures that are in a condition of measurable control. Process ability files measure how much “normal variety” a procedure encounters in respect to its particular breaking points and enables diverse procedures to be contrasted with deference with how well an association controls them.

Using the data given in Table 2, determine the process capability indices for performance metric. Provide the appropriate interpretation for the process capability indices drawn, based on the available data.

路 鈥楩irst Call Resolution鈥. The specification limits for the FCR are; LSL=75% and USL=100%.

路 鈥5 Day Resolution鈥. The specification limits for the 5DR are; LSL=90% and USL=100%.

Table 2.1 Day resolution data

5 Day Resolution

FCR %

5DR %

15″,822

72.0%

69.2%

22″,092

79.1%

76.3%

16″,697

68.6%

72.4%

21″,454

88.1%

71.7%

19″,663

58.4%

73.8%

20″,788

76.9%

75.2%

20″,136

94.4%

82.0%

22″,544

66.6%

75.4%

18″,788

69.8%

80.2%

14″,910

81.9%

65.1%

15″,301

68.8%

68.8%

22″,585

59.4%

82.2%

17″,138

82.8%

69.7%

15″,187

95.7%

57.5%

17″,691

65.3%

71.2%

17″,708

64.3%

65.6%

14″,749

82.2%

69.7%

21″,618

91.5%

74.9%

19″,949

85.7%

81.4%

14″,191

68.6%

66.8%

22″,833

79.4%

76.2%

14″,990

69.9%

70.1%

19″,047

78.8%

79.7%

24″,258

88.7%

89.2%

Table 2.1.1 Interpretation table

Description

Values

Notes

Interpretation

USL

1.00000

1. Since the Cp value here is .38 which is less than 1 means the process is not capable.

2. Cpk Value .047 is less than 1 which indicated the instability in the process and hence it is not capable.

3. The given specification range is 0.75 鈥 1.0 and the process mean for the same is .76536 as long as the process mean is not centre of the process tolerance range the cake value will always will be less than cp Value.

4. Non centring happens when the process fail to understand the customer expectation clearly or the process is complete as soon as the output reaches a specific limit.

LSL

0.75000

STDEV

0.10808

MEAN

0.76536

Cp

0.38551

(USL-LSL)/(6*STDEV)

Cpu

0.72365

(USL- MEAN)/(3*STDEV)

CpI

0.04737

(MEAN- LSL)/(3*STDEV)

Cpk

0.04737

Minimum of Cpu & CPL is CPK

3. Measurement system analysis

A trial and statistical approach for determining how complete the variety inside the judgment method adds to in common process vacillation. There are five parameters to examine in an MSA: predisposition, linearity, dependability, repeatability and reproducibility.

As indicated by AIAG (2002), a general principle guideline for estimation framework adequacy is:

路 Under 10 percent mistake is acceptable.

路 >10 percent to 30 percent mistake recommends that the framework is satisfactory relying upon the significance of use, cost of estimation gadget, cost of fix, and different variables.

路 More than 30 percent blunder is viewed as unsatisfactory, and you ought to enhance the estimation framework. AIAG additionally expresses that the quantity of unmistakable classes the estimation frameworks partitions a procedure into ought to be more prominent than or equivalent to 5.

Notwithstanding percent mistake and the quantity of particular classifications, you ought to likewise survey graphical investigations after some time to settle on the worthiness of an estimation framework.

3. Table voice sample data

In the second table, we are going to find which is the best method would be best to use form measurement system analysis (MSA) to verify the repeatability and reproducibility of quality assurance (QA). And we are Determine the potential causes why CCS fails to meet First Call Resolution targets consistently.

Other essay:   Secure banking system using block chain technology

3.1 Table voice sample data

Miranda Trial 2

3

2

2

4

1

5

4

3

3

4

2

3

5

2

2

2

2

3

3

2

3.2 Table Attribute data

Voice Sample

Master Appraiser

John Trial 1

John Trial 2

Miranda Trial 1

Miranda Trial 2

With In John

John With Standard

With In Mirinda

Mirinda with Standard

Between OPS

all OPS Vs Stnadrd

1

3

3

2

3

3

1

1

2

2

2

2

2

2

1

1

1

1

1

1

3

2

2

2

2

2

1

1

1

1

1

1

4

4

4

3

4

4

1

1

5

2

1

1

1

1

1

1

1

6

5

5

4

5

5

1

1

7

4

4

4

5

4

1

1

8

3

3

2

3

3

1

1

9

3

3

3

3

3

1

1

1

1

1

1

10

4

4

5

4

4

1

1

11

2

2

1

2

2

1

1

12

3

3

3

3

3

1

1

1

1

1

1

13

5

5

4

5

5

1

1

14

2

2

2

2

2

1

1

1

1

1

1

15

2

2

2

2

2

1

1

1

1

1

1

16

2

2

2

2

2

1

1

1

1

1

1

17

2

2

2

2

2

1

1

1

1

1

1

18

4

4

3

4

3

1

19

3

3

3

3

3

1

1

1

1

1

1

20

2

2

2

2

2

1

1

1

1

1

1

12

11

18

17

12

10

20

20

20

20

20

20

60%

55%

90%

85%

60%

50%

1. The data shown in the table is attribute data

2. The attribute Gage R&R analysis is applies to this data for verifying repeatability & reproducibility.

3.1 Table causes why CCS fails

Use Brainstorming technique for creative thinking and come up with improvement solutions that can be proposed for improvement in FCR

Solutions for bringing improvement in FCR performance

1. Improve the recruitment process through identifying the right skill, competency needs and mapping with the roles and responsibilities and ensure that right candidates are recruited for the post.

2. Create standard operating procedures and knowledge base based on the standard queries received from the customers. Maintaining the Knowledge base and updtodated SOP will help the representatives to provide the First call resolution and thereby achieve the set performance level.

3. Having a SOP will help new and existing representatives to FCR without doing further Research and forwarding the calls to supervisors.

4. Budgeting for functional and soft skill training will give them motivation to achieve further in the career growth with the company and thereby curb the high attrition rate.

5. Implement automation and latest technologies available will help effective call handling and thereby achieving high customer satisfaction

6. Gather Voice of customer on FCR performance and re-establish operational definition on FCR and how it is computed, the team should be educated on operational definition and data collection of FCR.

4. FMEA

Abbreviation for Failure Modes and Effects Analysis. FMEA is a hazard appraisal device, which assesses the seriousness, event and identification of dangers to organize which ones are the direst. The two most mainstream sorts of FMEAs are Process (PFMEA) and Design (DFMEA).

路 Every classification has a scoring network with a 1-10 scale.

路 Severity of 1 means okay to the end client, and a score of 10 signifies high hazard to the client.

路 Occurrence of 1 indicates low likelihood of the hazard occurring, and a 10 means a high likelihood of the hazard occurring.

路 Detection of 1 indicates a procedure that WILL probably get a disappointment, and a 10 implies the procedure will probably NOT get a disappointment.

Subsequent to scoring of every classification is finished for each hazard, the three scores are increased together (Severity x Occurrence x Detection) to decide the Risk Priority Number (RPN). The RPNs are arranged from biggest to littlest, and moves are made on the best dangers so as to lessen the general hazard.

Ordinarily, the seriousness can’t be decreased, so the group ought to assess approaches to diminish event or increment location. After activities are finished, the RPNs are recalculated and new dangers are resolved.

4. Table Action FMEA

1. Severity: The severity of the impact of the failure situation. It is a rate on a scale of 1 to 10. A great score is allowed to high-impact results while a low score is allowed to low-score results.

2. Occurrence: The frequency of appearance of the failure result. It is measured on a scale of 1 to 10. A high score is assigned to frequently occurring results while results with low occurrence are indicated a low score.

3. Detection: The ability to process investigations to identify the appearance of failure results. It is scored on a scale of 1 to 10. A failure result that can be simply identified by the process control is allowed a low score while a high score is allowed to inconspicuous results.

4. Risk Priority Number: The overall opportunity score of a result. It is measured by multiplying the scores for severity, occurrence and apprehension. A result with a high RPN demands important consideration while the results with low RPN are less risky.

5. Conclusion

Call Centres are progressively significant for unusual organizations and are absolutely battling with the measurement of bearing better administration at a lower cost. This paper aimed to speak the issue of whether Lean Six Sigma can be effective in a Bank Call Centre condition: by methods for a Study, it was concluded that Lean Six Sigma can improve the task of a Call Centre, through an advancement in First-Call goals (that reduces abortion made by neglecting to answer the inquiry in any case), a reduction in Call Centre superintendents’ turnover investigation): notwithstanding, negligent of this, it concluded out how to improve the First-Call goals, and consequently the client advantage levels, of its task.

Given any substantial size of various Call Centre activities, even a usually little improvement in the sigma estimation of the procedure can drastically diminish the imperfection valuation, increment consumer loyalty and convey money related advantages to the primary concern.

By focusing on wiping out waste, identifying the actual esteem including exercises and utilizing the DMAIC apparatuses for critical thinking, it is conceivable to accomplish essentially enhancements in expenses and the dimensions of client benefit gave (utilizing on preparing and encounter) and streamlining the hidden schemes by taking out superfluous activities.

This paper has used a specific number of tools accessible in the Lean Six Sigma toolkit while precluding some other analytical apparatuses.

Be First to Comment

Leave a Reply

Your email address will not be published.

0 Shares
Share via
Copy link

Spelling error report

The following text will be sent to our editors: