Lean Six Sigma –Process Improvement @ GEMB

Christof Kahlert, Quality Manager

CKC – FinanceClubApril 2008

Agenda

1. GE Consumer Finance and GE Money Bank

2. Six Sigma & Lean Basics

3. Lean Six Sigma & how we use it

4. Outlook – what are the newest trends in the industry

Welcome to GE Money Bank!

General Electric

A Worldwide Company –Based on Tradition.

General Electric –Progress Arised from tradition

…today… technology, media and financial services

… products & services in more than 100countries

… more than 300.000employees worldwide

1878…… founded by Thomas A. Edison,the inventor of the light bulb

GE Commercial Finance

GE Healthcare

GE Infrastructure

NBC UniversalGE Money

GE Industrial

Six Business Segments- same Aim: Growth

GE Money

A Worldwide Leading Financial Service Provider

GE Money, with more than 190 Billion USD in assets, is a leading provider of credit services to consumers, retailers and auto dealers in 47 countries around the world.

GE Money, based in Stamford, Connecticut (USA), offers a range of financial products, including private label credit cards, personal loans, bank cards, auto loans and leases, mortgages, corporate travel and purchasing cards, debt consolidation, home equity loans and credit insurance.

Leadership:William Cary, CEO

Business Units:Europe • Asia • Americas • Australia/New Zealand

More than 100 Million Customers Trust in GE Money

The GE Money – Brand Values An Expression of our Identity

GE Money Bank

Money Just Easy -From Humans to Humans

GE Money Bank – Facts & Figures

More than 1.200 Employees

More than 500.000 Customers

About 100 Branches Nationwide

Almost 6.000 Partners

Full-Service-Bank

Complete Linecard

Leading Terms and Conditions

Our Distribution Channels and Products

• Current Accounts• Private Loans• Mortgaging• Insurances

Retail Banking and Retail Sales Finance

Motor Solutions

• Current Accounts and Day-to-DayMoney • Saving Products• Securities Accounts• Insurances• Private Loans• Building Society Savings• Mortgaging• Retail Sales Finance

Direct Banking

• Car-Financing• Leasing• Insurances• Inventory Finance• Modular Space

Agenda

1. GE Consumer Finance and GE Money Bank

2. Six Sigma & Lean Basics

3. Lean Six Sigma & how we use it

4. Outlook – what are the newest trends in the industry

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Quality – Fruits of success

Six Sigmafor the sweetest fruits

LEAN for the bulk of fruits that are hanging in the tree and for the low hanging fruits easy to reach

Work-Out for the fruits on the ground, just easy solvable

problems

What Lean can do for you

Less work, less time, same result

Value add Process Step

Before

After

Waiting timeNon value add Process Step

Lead Time

Lean – what it is

2 Auszahlungsfehler an unseren GAA pro Jahr

7200 withdrawel failures at the ATM‘s of GEMB per year

1.7 fehlerhafte chirurgische Eingriffepro Woche

5,000 surgery errors per week

7 verlorene Briefe pro Stunde

20,000 lost letters per

hour

6 Sigma -99.9997%

3.8 Sigma –99%

Measuring the Quality

Stretch for the best

Six Sigma

2 withdrawel failures atthe ATM‘s of GEMB per year

7200 withdrawel failures at the ATM‘s of GEMB per year

1.7 surgery errors per week

5,000 surgery errors per week

7 lost letters per hour20,000 lost letters per

hour

6 Sigma -99.9997%

3.8 Sigma –99%

Iterative Process

Steps A,B,C

Steps 1,2,3

Steps 4,5,6Steps 7,8,9

Steps 10,11,12

Brainstorm the potential causes (X’s) to your problem using the standard headings below (use other headings if more suitable).

Machines Methods Materials

Measurement Mother Nature People

Why are customers not

happy with IVR?Child crying

Caller having a bad day

Queue too long

Bored with messages

Don’t have A/C #

No instructions

Old style phones

IVR Capacity

Age

Personal Preference

Questions during call

Misdetects/Hang-ups

Cause & Effect Diagram (Fishbone)

Agenda

1. GE Consumer Finance and GE Money Bank

2. Six Sigma & Lean Basics

3. Lean Six Sigma & how we use it

4. Outlook – what are the newest trends in the industry

Lean and Six Sigma

The customer has two interests:

Speed and Quality

These two translate into:

process flow and process excellence

LeanSixSigma

LEAN: Focus on Wing to Wing (breadth)Six Sigma: Focus on Output (depth)

Lean Customer

Upper limit

Lower limit

Six Sigma

Mailing CallSend

Contract Check, Pay out

Overall:

Measurement,

Policy Complexity

LEAN: Flow

LEAN: Pull + Flow, Level Loading

LEAN Six Sigma: Incomplete Documents

LEAN: Simplify + Standardize

LEAN: Standardize

Six Sigma: Improve the Yield

Six Sigma: Pricing strategy

LEAN: Time to Customer

Response

Wing to Wing Project: Direct Sales

Agenda

1. GE Consumer Finance and GE Money Bank

2. Six Sigma & Lean Basics

3. Lean Six Sigma & how we use it

4. Outlook – what are the newest trends in the industry

VOC – a six sigma tool?

What makes the customer experience process change?

What will the customer see as a real benefit?

-> Have you ever looked through the customers eyes?

-> Do you know the customers process times?

What Lean can do for you

• Send your CRM People to walk the process with customer eyes

• Send your CRM people to walk the process with employee eyes

• Afterwards, they will stop sending mailings till the process is fixed

Lean will speed up the customer experience

Customers at the Lean AWO

Lean with the customer – how can that work?

• Draw the process from customer perspectives

• compare his times and perception of the process with your measurements and times

• find the angle to shift customers perception instead of just eliminating internal waste

Customers at the Lean AWO

Lean with the customer – do I really want this?• the feedback is more valueable, than you can imagine and sometimes customers just need some explanation for unchangable waiting times and they will accept• It is all about: cost saving vs. growth opportunities

-> you miss opportunities