IMPLEMENTING SIX SIGMA VIA TOTAL QUALITY MANAGEMENT - Improvising processing method in Bank Simpanan Nasional A Case Study

Hello Miss! I want to claim my late mothers money and close her account....and here are all the document needed as requested, said the young chap claimed to be the deceaseds son at the counter at Bank Simpanan Nasionals (BSN) mini branch in Merbok, Kedah. After the Teller checked all the documents which all in complete order and the account balance of the deceased, she told the young chap that the account balance was RM1,250.56 but what surprised the young chap was he cannot withdraw the money and closed his late mothers account due to inexistence of his late mothers signature card at that mini branch. He was told to go to any of the main branches of BSN and in this case, he has to go to the main branch in Alor Setar. The young chap argued that why he has to go into trouble for just to close the account because Alor Setars main branch is very far that is 52 kilometers away! Thats our procedure, exclaimed the Teller.

The young chap succumbed and passed away with a feeling of dissatisfaction. A week later, the Customer Service Division at Bank Simpanan Nasionals headquarters received letter of complaint about thing that had happened from the young chap.

The complaint had drawn the attention of the Quality Division at the Headquarters. They began to collect all data related to the complaint, including the work process of the deceased depositor claims. A committee headed by a leader in quality has been formed to address this problem. The quality leader has a green belt in Six Sigma methodology that has expertise in solving problems.

BSN has adopted TQM program, the Six Sigma approach and quality values in the working environment since 2004. In brief, TQM emphasizes continuous

IMPLEMENTING SIX SIGMA VIA TOTAL QUALITY MANAGEMENT - Improvising processing method in Bank Simpanan Nasional A Case Study
improvement, a philosophy of "doing it right the first time" and striving for zero defects and elimination of all waste. It is a concept of using quality methods and techniques to strategic advantage within organisation. The main important thing is that the organisation has to sustain and dicipline in quality practices. While Six Sigma is the approach that seeks to find improvements and eliminate causes of defects and errors in manufacturing and service process by focusing on outputs that are critical to customers and results in a clear financial return for the organization. Customer loyalty, internal and external customer satisfaction and

business performance is key to the success of an organization. In BSN, all of these factors is essential to maintain the existence of BSN as a government financial institution.

Back to the problem of the young chap. The formed committee consisting of subject matter experts from various job functions or cross functional processes. They viewed this problem as a whole process from attending customer at the counter until the customer leaves the counter with satisfaction. This is because the approach of TQM is from the customer back to the customer.

Next, Six Sigma approach is used to identify deficiencies in each step in the process of death claims of depositors. They practice the DMAIC problem-solving approach of Define, Measure, Analyze, Improve and Control. The Approach of DMAIC Used

Identify priorities and needs of customers.

Define Identify the internal and external policies involved.

Identify the impact on the organization, the business

objectives and quality of service. Identify the number of complaints received.

Measure

Identify the current processes involved and the turn around

IMPLEMENTING SIX SIGMA VIA TOTAL QUALITY MANAGEMENT - Improvising processing method in Bank Simpanan Nasional A Case Study
time (TAT). Identify defected step or steps involved in the current Analyze processes and the amount of defects. Determine causes of errors or defects by using the Ishikawa Diagram (Cause & Effect Diagram a.k.a. The Fish Bone Diagram). Understanding the causes