Mashida 55115110145

QUALITY PROJECT
ATM Cash
Replenishment
Mashida
55115110145
ooooooo
Rina Riani
Operation Development Division
ooooooo
2015
This presentation materials is solely for the use of PT. OCBCNISP Tbk. No part of it may be circulated, quoted, or
reproduced for distribution outside the organization without prior written approval from PT. OCBC NISP Tbk.
This material was used by PT. OCBC NISP Tbk.during an oral presentation; it is not a complete record of the discussion.
Project Team
Project Sponsor
Radiman Ali Rohim (Transaction Banking
Div. Head)
Joyce W. Inggil (Ops. Development Div.
Head)
Tedy Setiawan (Ops. Monitoring Div.
Head)
Project Manager
Mashida (Cash Management Ops. Head)
Team Member
Dian Reza Ayatullah (Cash Management
Support Manager)
Budi Prasetyo (Cash Center Manager)
Udin Najmudin (Offsite Monitoring &
Dev. Manager)
Susan Fitrianti (Sr. Policy & Procedure
Officer)
Project Facilitator
Rina Riani (Quality Improvement)
Extended Team Member

Safruddin Prawironegoro (Sr. Cash
Management Support Officer)
Ichsan Galih Prabowo (Cash Center
Officer)
DEFINE | MEASURE | ANALYZE | IMPROVE | CONTROL

2

3
Project Background
Automatic Teller Machine (ATM) is an electronic

telecommunications device that enables the
customers to perform financial and non financial
transactions. Using an ATM, customers can access
their bank accounts in order to make a variety of
transactions.
Proper planning of ATM cash replenishment is
critical for the Bank in order to achieve effective
and efficient cash management. Replenish with
cash higher than the demand not always a good
decision from the business side since it can lead to
idle cash.

4
Critical Business Issue
ATM Branch = 330 ATM
ATM Public = 332 ATM
ATM Payroll Area = 59 ATM
ATM Mobile = 17 ATM
Total ATM Machine = 738
Average utilization of all ATMs in 2014 are only 68% from amount Cash In, with average cash idle
in ATMs are more than IDR 130 Billion per day.
With this condition, management has set target to reduce idle cash by IDR 100 Billion per day
(include idle cash in Branch)
5
Critical Process Issue
Frequency of ATM Cash Replenishment is higher and/or

lower than number of trip package from vendor
60% of ATM are not fully utilized with the transaction

are less than 70% from total amount of Cash In
43% of ATM have interval days of replenishment more

than 10 days

6
Goals, Scope, Timeline

PROJECT GOALS
To reduce idle cash ATM by 15% from average IDR 134 bio per day to average IDR
114 bio per day
PROJECT SCOPE
Process of ATM Cash Replenishment
Start : Request for ATM Cash Replenishment
End : Cash are replenished in ATM
Include :
Cash Replenishment of ATM at Branch,
Public Area, CMS and Mobile ATM
Exclude :
Cash Replenishment due to machine
maintenance
TIME LINE
DEFINE
MEASURE
ANALYZE
IMPROVE
CONTROL
Desember 2014
Jan Mar 2015
Apr July 2015
August Sept 2015
Oct Dec 2015
7
SIPOC
Supplier
ATM
Monitoring
Vendor
Replenishment
Cash Center
Input
Cash Balance in
ATM every 2
hours
Cash
Process
Create list of
ATM that need
to be
replenished
(cash balance
almost reached
30% of Cash In)
Prepare cash in
accordance with
ATM limit
Put the money
into the cartridge
Replace empty
cartridge in ATM
with the refill
cartridge
Output
Refilled cash ATM
Customer
Customer

8
FUNCTION RELATIONSHIP MAP

1
ATM
Monitoring
ATM Cash Balance
2
Order Additional
Cash*
Cash Center
3
Order Additional Cash*
4 Additional Cash*
Vendor CIT
V
E
N
D
O
R
A
T
M
Customer
Cash
ATM
Cash
*if theres insufficient cash at the vendor

9
STAKEHOLDER ANALYSIS
Key
How Stakeholders Will
Stakeholders
Be Involved In This
Project
How the Process Impact This

Stakeholders
How The Stakeholders

Affect This Process
ATM
Monitoring
Provide data of ATM

cash balance
System error can cause

stakeholder failed to get the
data of cash balance ATM
Responsible to provide
data of cash balance
ATM every 2 hours to
ATM Vendor
Vendor
Provide data amount

and time of
replenishment
Accurate data of cash balance

impact to accurate forecast of
which ATM should be
replenish
Enough amount of cash
holding at ATM Vendor impact
to time of replenishment
process
Impact to cycle time of

ATM replenishment
process
Avoid / reduce ATM
downtime
Cash Center
Share the experiences Availability data of cash

and obstacles in cash
transaction impact to better
replenisment planning
forecast of amount needed in
Provide input for new
ATM
cash replenishment
planning
Proper planning of
maximum limit of ATM
will reduce idle cash

10
Cross Function Process Map

ATM Cash Replenishment Process

11
Cross Function Process Map

ATM Cash Replenishment Process

12
High Level Process (As Is)

Planning of ATM Cash Limit
New ATM
installed
Seek nearby
ATM to
compare Limit
and Frequency
of cash
replenishment
Set amount
to be put in
the ATM
(ATM Cash
Limit)
Establlish
agreement with
vendor for ATM
cash
replenishment
New ATM
ready to use

13
Issues & Impacts

No
Issues
Impacts
Low Utilization : ATM are

replenished before alarm reach 30%
cash in
Higher number of replenishment trip

Cash idle
High interval days of replenishment
Cash are kept too long in the ATM

(Cash Idle)
Vendor are not fully utilized (waste in
trip package)
Frequency of ATM Cash

Replenishment is higher and/or
lower than number of trip package
from vendor
Additional cost if the frequency is

higher than trip package
If the frequency is lower , package
become a waste and can not be used
for other ATM
High cost for cash handling

14

15
Measurement Plan
Metric
Average Rate of ATM Utilization
Operational
Definition
How / Who to
Collect the Data
1. Team member (Ops. Monitoring) retrived data from report service

(ATM01) and send to Cash Center
2. Team member (cash center) segregate data by terminal ID and
transaction type (cash in / cash out)
3. Calculate average cash in and cash out per month per terminal ID
4. Calculate average rate of ATM utilization by comparing amount cash in
and cash out
5. Translate into visual / graphical presentation
Tools
Excel Worksheet
How Much
Data transaction from January 2014 to December 2014

16
Average Rate of ATM Utilization

Utilization rate
No. of
ATM
0% - 30% Cash In
> 30% - 40% Cash In
12
> 40% - 50% Cash In
38
> 50% - 60% Cash In
80
> 60% - < 70% Cash In
307
>= 70% Cash In
294
Total
738

17
Measurement Plan
Metric
Interval days of replenishment
Operational
Definition
How / Who to
Collect the Data

2. Team member (cash center) segregate data by terminal ID
3. Team member (cash center) count number of trip (cash in) per month for
each terminal ID
4. Calculate average interval days of cash in per terminal ID
5. Translate into visual / graphical presentation
Tools
Excel Worksheet
How Much
Replenishment (Cash In) schedule from January 2014 to December 2014

18
Interval Days of Replenishment

Interval Days
No. of ATM
0 - 10 days
417
> 10 - 20 days
217
> 20 days
104
Total
738

19
Measurement Plan
Metric
Utilization of Trip Package
Operational
Definition
Utilization of trip package are comparison between trip package purchased

from vendor and frequency of each ATM terminal are being replenished by
each vendor in each area for each month
How / Who to
Collect the Data

2. Team member (cash center) segregate data by Vendor and periode of
cash in
3. Count total number of cash in for each vendor per area
4. Team member (Cash Center) collect data of trip package
5. Team member (Cash Center) compare number of trip package and total
trip of replenishment for each vendor per are
Tools
Excel Worksheet
How Much
Replenishment (Cash In) schedule from January 2014 to December 2014

20

City
Area
# of
ATM
Package
# of
Trip
Over
Trip
Over
Package
City
Area
VENDOR : G4S
# of
ATM
Package
# of
Trip
Over
Trip
Over
Package
VENDOR : ALPHA
Ring 1
28
150
151
Ring 2
18
21
13
Ring 3
12
Ring 4
16
90
110
20
186
153
33
BOGOR
Ring 1
24
21
22
20
DENPASAR
Ring 1
32
16
16
Ring 2
38
258
290
32
JAKARTA
Ring 1
153
622
422
200
Ring 3
11
66
97
31
Ring 2
82
458
464
Ring 1
16
64
64
Ring 3
22
162
259
97
Ring 2
12
10
Ring 1
26
104
79
25
CIREBON
Ring 1
32
25
Ring 2
11
DENPASAR
Ring 1
12
48
25
23
Ring 1
11
44
22
22
JAKARTA
Ring 1
30
14
16
Ring 2
Ring 2
24
19
KLATEN
Ring 1
15
60
49
11
LAMPUNG
Ring 1
16
MAKASSAR
Ring 1
10
40
21
19
Ring 3
Ring 1
42
168
120
48
Ring 2
20
18
BANDUNG
BOGOR
BEKASI
BATAM
SURABAYA
Ring 1
55
330
408
78
Ring 2
36
45
Ring 3
12
25
Ring 1
12
Ring 2
25
Ring 1
BANDUNG
MEDAN
SEMARANG
VENDOR : CMS
JAKARTA
Ring 1
16
12
Ring 2
24
146
97
49

21
Baseline from the Measurement Phase
No.
Metric
Baseline
Average rate of ATM utilization
40% of ATM are optimum utilized
Interval days of replenishment
57% of ATM are replenished less than 10

days
Total Over Trip = 293 Trip

Total Over Package = 514 Trip

22

23
Data Analyze : ATM Utilization vs Interval Days of Replenishment

Optimal Condition (21%) :
High utilization rate, fast
interval days of replenishment
Low utilization rate, fast

Usage (ATM Transaction) Percentage
Interval
Replenish
0% - 30%
> 30% - 40%
> 40% - 50%
> 50% - 60%
> 60% - 70%
> 70%
0 10 days
26111ATM
33
213
156
156
ATM
417
> 10 20 days
12
30
85
217
> 20 days
15
17
34
87
232
26
ATM
Total
12
38
80
332
269
738
Low utilization rate, long

208 ATM
Total
104
High utilization rate, long

High utilization rate of ATM still can lead to cash idle if the cash are being kept too long
in ATM without any withdrawal transaction from customer
24
Data Analyze : Utilization of Trip Package

Vendor
# of ATM
Package
# of Trip
Over Trip
Over
Package
153
886
1.016
130
204
842
568
274
CMS
27
162
109
53
G4S
112
702
865
163
155
738
551
187
293 Trip
514 Trip
Alpha
Total
Over Trip lead to additional charges

Over Package are waste that can not be used for other ATM

25
5 Whys : Low Utilization

Low Utilization of
ATM Cash Limit
Amount Cash In are
much more higher than
transaction amount
Vendor replenish ATM

before amount reach
30% Cash In
Cash Center dont

review ATM cash limit
No policy to review
ATM cash limit
Cash Center dont

know how to review
ATM cash limit
Lack of knowledge
No Guidelines
26
5 Whys : High Interval Days of Replenishment

High Interval Days of
Replenishment
Amount Cash In are
much more higher than
transaction amount
Cash Center dont

review ATM cash limit
No policy to review
ATM cash limit
Cash Center dont

know how to review
ATM cash limit
Lack of knowledge
No Guidelines
27
5 Whys : Usage of Trip Package are Not Optimal

Usage of Trip Package are
Not Optimal
No review of ATM
replenishment transaction
(Cash In, Cash Out)
No policy to review
ATM replenishment
transaction
No tools of how to
review

28
Proposed High Level Solution

Issues
Root Cause
Proposed High Level

Solution
Target
August 2015
Low Utilization : ATM are

replenished before alarm
reach 30% cash in
No policy to review
ATM cash limit
No guidelines
A. Develop tools to
determine amount
and frequency of ATM
Replenish based on
daily transactions
High interval days of

replenishment
No policy to review
ATM cash limit
No guidelines
B. Create new policy and Sept 2015

guidelines of ATM Cash
Replenishment
Usage of trip package are

not optimal
No policy to review
ATM replenishment
transaction
No tools of how to
review

29

30
A. Develop Tools to Determine Limit & Frequency of ATM

Framework :
Calculate cash needed per month for each ATM based on historical withdrawals (daily
transactions)
Cash needed per ATM, denomination and maximum capacity per cartridge will be the factors to
plan frequency, limit per ATM replenishment & Alarm for next replenishment
For each ATM, compare the planning with package offered by the vendor, and choose the most
optimum package
Determination Process
In a Thousand
Next Packaging
50,000
125,000
100,000
250,000
Input Withdrawal Data

In a Thousand
No
Id ATM
Data
withdrawal
Status
4
5
Denom Data Act Withdraw al
1
2
34
The Simulation
31
Jan
1
2
3
4
5
6
28003
28039
28058
28113
28053
28160
Branch
Branch
Public
Public
Payroll
Payroll
50
100
50
100
100
50
11,150
9,900
80,550
4,900
3,950
9,600
24,400
52,300
129,150
15,900
9,000
6,500
13,450
20,300
203,500
8,500
14,300
10,900

31
Illustration :
Term inal ID
Location
Term inal ID
Location
28063
Pasar Anyar
28714
Citra Raya 2
Operator
: G4S - BOGOR
Operator
: ALPHA - JAKARTA
Area
: Ring 2
Area
: Ring 2
Denom
Denom
50.000
EXISTING PACKAGE
50.000
EXISTING PACKAGE
Package
Package
Avg Trip 2014
Avg Trip 2014
18
Status
OVER PACKAGE
Status
OVER TRIP
Total Cash In
750.000.000
Total Cash In
9.375.000.000
Total Transaction
500.350.000 (needs)
Total Transaction
5.842.450.000 (needs)
Max / Cartridge
125.000.000
Max / Cartridge
125.000.000
Max / ATM
500.000.000
Max / ATM
500.000.000
Trip Needed
Trip Needed
NEW PACKAGE
Package
12
NEW PACKAGE
:
Limit Per Replenish :
125.000.000
Total Cash In (new ) :
500.000.000
Package
12
Limit Per Replenish :
500.000.000
Total Cash In (new ) :
6.000.000.000

32
B. New Policy and Guideline

High Level Solution
Action Item
New policy and guidelines

Internal Memo :
of ATM Cash Replenishment No. 070/ODD-PnPSF/MI/VIII/2015
Status
Done, 1 September 2015
Regarding :
Guidelines for Idle Cash /
Cash Holding management
at the branch and ATM
machine by Cash
Management Operation /
Cash Center
Socialization about new
policy and mechanism to
branches via e-mail and
internal web
Done, end of September

2015

33
High Level Process (Should Be)

Planning of ATM Cash Limit
New ATM
installed
Seak nearby
ATM to
compare Limit
and Frequency
of cash
replenishment
Set amount
to be put in
the ATM
(ATM Cash
Limit)
Establish
agreement
with vendor
for ATM cash
replenishment
New ATM
ready to
use
Review
limit ATM
and
transaction
for each
ATM
Change
limit &
package
ATM (if
needed)
For new ATM, review are done

1 month after being operated.
For existing ATM, review and
changes are done once a year.
34
Cost and Benefit Analysis

Type of
Savings
Detail
Saving Amount
(IDR)
Hard Impact
Reduced trip package (cost of cash

handling) from 38.250 to 33.620 trip per
year
IDR
Soft Impact
Reduced cost of idle cash (FTP 6%)
IDR 1,605,017,671 p.a
Total Margin of Improvement

Other Benefit
900,615,670 p.a
IDR 2,505,633,341 p.a
Provide tools for effective & efficient

ATM cash management
Optimal use of vendor for ATM
replenishment

35

36
Result for 3 months implementation :

Implementation Start : October 2015
No
Metric
Baseline
3 Months
Implementation
Improvement
Average rate of
ATM utilization
40% of ATM are optimum

utilized
44% of ATM are optimum

utilized
Increased by 4%
Interval days of
replenishment
57% of ATM are replenished

less than 10 days
79% of ATM are replenished

less than 10 days
Increased by 22%
Utilization of Trip
Package

Total Over Package = 514
Trip

Total Over Package = 106 Trip
Increased over trip by 70%

Decreased over package by
79%

37

Implementation Start :
October 2015
Average idle cash ATM :
IDR 122 bio per day
decreased by 9%
(from average IDR 134 bio per day)
Compared with year on year (YoY)

data :
Decreased by 20% in the 1st month
of implementation (October 2015)
38

Avrg Number of ATM
Avrg Number of Cash Replenishment
Avrg Charges
Before
After
690
675
3.094
3.495
Rp 1.465.761.193,-
Rp 1.415.785.998,-
Efficiency Charges
Rp 51.912.650,-
Efficiency Charges / Year
Rp 622.951.802,-
Average number of cash replenishment

are increased due to changes in ATM cash
limit. But the charges are decreased
because we purchased packaged from
vendor as needed (reduced purchased
cost and additional cost)

39

40

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QUALITY PROJECT

Extended Team Member

DEFINE | MEASURE | ANALYZE | IMPROVE | CONTROL

DEFINE | MEASURE | ANALYZE | IMPROVE | CONTROL

Automatic Teller Machine (ATM) is an electronic

DEFINE | MEASURE | ANALYZE | IMPROVE | CONTROL

Critical Business Issue

ATM Branch = 330 ATM

ATM Public = 332 ATM

ATM Payroll Area = 59 ATM

ATM Mobile = 17 ATM

Total ATM Machine = 738

Critical Process Issue

Frequency of ATM Cash Replenishment is higher and/or

60% of ATM are not fully utilized with the transaction

43% of ATM have interval days of replenishment more

DEFINE | MEASURE | ANALYZE | IMPROVE | CONTROL

Goals, Scope, Timeline

DEFINE | MEASURE | ANALYZE | IMPROVE | CONTROL

FUNCTION RELATIONSHIP MAP

ATM Cash Balance

*if theres insufficient cash at the vendor

DEFINE | MEASURE | ANALYZE | IMPROVE | CONTROL

How the Process Impact This

How The Stakeholders

Provide data of ATM

System error can cause

Provide data amount

Accurate data of cash balance

Impact to cycle time of

Share the experiences Availability data of cash

DEFINE | MEASURE | ANALYZE | IMPROVE | CONTROL

Cross Function Process Map

DEFINE | MEASURE | ANALYZE | IMPROVE | CONTROL

Cross Function Process Map

DEFINE | MEASURE | ANALYZE | IMPROVE | CONTROL

High Level Process (As Is)

DEFINE | MEASURE | ANALYZE | IMPROVE | CONTROL

Issues & Impacts

Low Utilization : ATM are

Higher number of replenishment trip

High interval days of replenishment

Cash are kept too long in the ATM

Frequency of ATM Cash

Additional cost if the frequency is

DEFINE | MEASURE | ANALYZE | IMPROVE | CONTROL

DEFINE | MEASURE | ANALYZE | IMPROVE | CONTROL

Average Rate of ATM Utilization

1. Team member (Ops. Monitoring) retrived data from report service

Data transaction from January 2014 to December 2014

Average Rate of ATM Utilization

> 30% - 40% Cash In

> 40% - 50% Cash In

> 50% - 60% Cash In

> 60% - < 70% Cash In

>= 70% Cash In

DEFINE | MEASURE | ANALYZE | IMPROVE | CONTROL

Interval days of replenishment

1. Team member (Ops. Monitoring) retrived data from report service

Replenishment (Cash In) schedule from January 2014 to December 2014

DEFINE | MEASURE | ANALYZE | IMPROVE | CONTROL

Interval Days of Replenishment

DEFINE | MEASURE | ANALYZE | IMPROVE | CONTROL

Utilization of Trip Package