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Improve and Control for Process Improvement

Six Sigma – iSixSigma Forums Old Forums Finance Improve and Control for Process Improvement

Viewing 7 posts - 1 through 7 (of 7 total)
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  • #24406

    Need advice
    Participant

    My project is to reduce credit decision cycle time. I’m currently working on my IC. My approach was levied on the Lean concept and had come up with a process re-design to eliminate the NVA steps and come up with some standardized formats for submission and underwriting. My problem is how to present the solutions in the DMAIC format (hard to quantify the relationship between the variables and establish operating tolerances etc….). Does anyone have a similar encounter and have any suggestions/best practice to share? Thanks!   

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    #58579

    Saherngu
    Participant

    If you have reduced cycle time via removing NVA activities then your
    Y’s such as % of loans that met turntime, % of app fallout, avg uw decision turntime and UW backlog should be improving. 
    What was you Y in your project charter.  If it was to reduce fallout due to lengthy credit decisions then you should see a upward trend in net income. 

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    #58580

    Need advice
    Participant

    Thanks James. My Project Y is to reduce the credit approval cycle time to under 5 days. Anything above is considered as defects.

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    #58610

    M Imtiyaz
    Participant

    Hi,
    In the improve phase ,we basically work on developing the solutions for the identified root cause from the analyse phase.Whatever action u have taken ( tool used, change in procedures etc ) to eliminate or reduce the effect of root cause is to be mentioned in the improve phase & can probably confirm the improvements with the  hypothesis testing ( t & F test) .
    In control phase please mention how will u avoid the process following back Basically it can be process/procedure change documentation, training,Monitoring the Y using the control chart.
    Thanks,
    B M I

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    #58612

    Need advice
    Participant

    Thanks for your advice.  

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    #58615

    Shrestha
    Participant

    Define/Measure the problem – measure the time for pre project state for a large number of credit advices given – say one month sampling calculate average and sigma of times taken.
    For 99.7% service standard acheivement A+3s of these times should be less than 5.
    Define problem as reduce the cyrrent state a+3s time to <5
    Analyse/Improve: draw a value atream map and using techniques cut the time. Each idea should give measured improvement
    C: pit an Xbar control chart with limits in place.
    This is a calssic lean-sixsigma application.
    regards,
    Niraj
     

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    #58617

    gvrk
    Participant

    Hi,
    Well as per your problem statement. You need to measure the time taken to process.. before the Analyze phase and at the end of Analyze phase ensure that the decision taken by the six sigma team to reduce the cycle time. In Improve phase the control mechanism has to be established and the data has to be measured once again to ensure or cross check whether the control’s have reduced the cycle time or not and calculte the CP or sigma values based on this. In Control phase you need measure the data for about 3 or 6 months.. on X bar or any applicable control charts and last but very important institunioalisation is very important…Hope i have clarified ur doubt, if you still have do feel free to contact [email protected].

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