Help Selling Six Sigma to a Loan Company
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Mike Carnell.
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October 14, 2013 at 12:41 pm #54558
LaymanGuest@PaullInclude @Paull in your post and this person will
be notified via email.I work for a loan company and I’m trying to sell six sigma to them for myself. We have an analytics dept, training dept and a BA, how can I sell this product to them ? Can anyone give me an example of how six sigma has made a difference to your company in the loan market? Thanks
0October 14, 2013 at 12:55 pm #196070
Katie BarryParticipant@KatieBarryInclude @KatieBarry in your post and this person will
be notified via email.@Paull — You might want to take a look at two of our content sections: 1) New to Six Sigma > Getting Started https://www.isixsigma.com/new-to-six-sigma/getting-started/ and Operations > Financial Services https://www.isixsigma.com/industries/financial-services/.
0June 9, 2015 at 2:16 pm #198393I think the best way to sell it, is to do it and show the results. If you know DMAIC or some similar process improvement methodology I really think the best way to build support is to pick a high-value, high-visibility, high odds of success project, gather a team and knock it out.
The LSS system works, it’s just a matter of working the system (quote stolen from ?).
0June 9, 2015 at 3:28 pm #198394
Shelby JarvisParticipant@ShelbyJarvisInclude @ShelbyJarvis in your post and this person will
be notified via email.You may be able to benchmark large banking examples of LSS. Bank of America utilizes Six Sigma. I’m not certain how available they make the details.
0June 11, 2015 at 3:37 am #198399
Jim HaParticipant@jamilahharonInclude @jamilahharon in your post and this person will
be notified via email.Areas on loan processing that apply six sigma and lean are
1. End-to-end Turn Around time improvement of the loan from submission to disbursement to applicant
Use of Process Mapping or Value Stream Map and process streamlining would be useful.
Look for opportunities for customization of processes , based on customers segments.At high level the process look like this
Submission -> Documents review-> Credit assessment –> Approval process –> DisbursementReducing lead time of end-to-end loan processing means customers are disbursed faster, and results in faster payback by customer (installments starts a few days earlier or a few months earlier).
Dollar and cents wise – especially when volume (applicants) is high, faster lead time could mean opportunity to gain more interest income by the company.2. Standardization of governance process at approval phase. Approval is delayed typically due to multiple approval requirements. Consider operational risks when simplyfying process at approval
3. Streamlining documents requirements. Customers tend to get confused of documents requirements
I am not sure if your scope also involved loan products developments. There could be opportunities for six sigma there.
Good luck
0June 12, 2015 at 1:06 am #198407
Norbert FeherParticipant@NfeherInclude @Nfeher in your post and this person will
be notified via email.Hi,
Although I was not involved in a classic loan company six sigma project, I worked on several transactional problems.
I propose You to gather some data regarding to key indicators:
– lead time of loan approvals
– number of rework loops per contract
– number of errors per application
– bad debt / non payment ratio after setting up a contract
– number of touches per application:-)I could imagine several tools:
– VSM and bottleneck process analysis for the whole process
– Poka Yoke “map” for the process errors
– Benchmarking (Company vs. main competitor, company vs. target, company vs. the same company 5 years ago)
– Application approval gate review checklists
– Scatter plots (groupped by industry, loan amount, based on Z score (liquidity related and not the classical six sigma Z score), etc.Based on the proposals Lean and Six Sigma go hand in hand again:-)
There are some very useful case studies through the internet.
Have a nice day!
Norbert
0June 14, 2015 at 9:44 am #198427
Mike CarnellParticipant@Mike-CarnellInclude @Mike-Carnell in your post and this person will
be notified via email.@Paul We have done a few financial institutions. We may be able to help you with this. If you are interested you can contact me off line at [email protected].
If you want to do this on your own there is a lot of data around GE Capital that can help.
Good luck
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