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When was lean/six sigma first used in finance?

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  • #24585

    Gavin Compton
    Participant

    I am interested in knowing which financial institution/s were the first to experiment with and use manufacturing concepts such as those used in lean and six sigma.  Can anyone point me to a website or article on this please, or provide me with an organisation,s name and a contact who may be interested in corresponding with me?

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    #58962

    Schuette
    Participant

    I lead a reengineering effort at Bank One now JPMorgan Chase within their corporate finance division. We primarily leveraged lean concepts with some six tools to reduce closing monthly books quicker and more accurately (to name one). I can be reached at [email protected] should you want to chat offline.
     

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    #58976

    Schuette
    Participant

    I would contact Mike Nichols who used to work at American Express. He is the incoming ASQ President but he knows alot of financial companies doing Six Sigma.

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    #58979

    Gavin Compton
    Participant

    Thank you Jim for your kind assistance.  Forgive me but how will I contact Mike Nichols?  Should I just use the general contact or is there a specific e-mail address for him?  I will send the general contact an e-mail as it is now Friday morning here.  So I won’t hear back from you until proberly Monday morning my time at the earliest.  In the meantime if you have a specific one for him could you send it anyway please.
     

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    #58982

    Six Sigma in Finance
    Member

    Six Sigma in the Financial Services industry was first started at GE Capital in 1995/1996. GE Finance had a three week program geared towards transactional processes. Starting in 1998, GE embarked on a mission to require its suppliers to work more closely with their Six Sigma initiatives. First Data Corporation, the world’s largest credit processor and a key client of GE Capital started Six Sigma in their cardholder facilities in Omaha in 1998 as a pilot followed by Merchant Services and Western Union in 1999/2000. These initiatives failed terribly as soon as GE Capital loosened its control over its suppliers quality initiatives. However, the initiative was taken up by Bank One and some other banks that worked with First Data. Also, American Express followed suit. These first forrays into Six Sigma received a second serious push when Bank of America decided to introduce Six Sigma in the financial services industry. The difference between First Data and Bank of America was that Bank of America made the conscious decision to start Six Sigma only after it had stopped its acquiring spree of the late 1990s. I would say that from BoA the idea spread quickly into the operations of large scale transactional processing such as insurance providers, mortgage bankers etc. Banks such as Bank One, Chase etc. followed suit starting at around 2001. Bank One, which was founded by statisticians focused on its growth strategy and development of datamining technology before it went into six sigma. In general, you can say that the financial services industry seriously started looking at Six Sigma at around 1998 in the areas of third-party processors and strategic alliance partners (back office operations not visible to clients) and that Bank of America was the main driver that pushed six sigma to companies that are in direct contact with its customers. The two key success stories that fueled the interest in Six Six Sigma were GE Capital (phase I), Bank of America and and to some degree Morgan JP (phase II). Now you have a dynamic of its own where even large hospital providers such as HCA are seriously looking at six sigma. .

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