Documente Academic
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ANALYSIS
FIRST
GLOBAL BANK
THE CHANGING FINANCIAL
ENVIRONMENT
Featuring
Gerron Thomas as Himself
and Brian Winter Governor
of the B.O.J.
Kevin Whitehorn as Himself
and Michael lee Chin
Chairman NCB
Novelette Johnson Williams
as herself and Mina Israel
Executive Director RBC
Featuring
Rose Bachan as herself and
CFO of JMMB Donna
Duncan.
Karekia Brown as Herself
and Joan Webby Chairman
of First Global Bank.
EBBA5 Students as
themselves and head of
various financial
institutions.
Scne1
Governor of the B.O.J. and head
of financial regulations invites
some top executives to the
annual Bank Operations
Management Summit
Discussions include The
operations management
function, and changes in the
SCENE2
GOVENOR PHONES TEAM OF
AUDITORS TO EXECUTE UNANNOUNCED INVESTIGATION ON THE
TOP BANK FIRST GLOBAL 6 MONTHS
AFTER THE REGULATORY BODY MADE
SUGGESTIONS TO MITIGATE IMPACTS
OF THE RECESSION. HE ALSO
PHONES THE HEAD OF FIRST GLOBAL
MRS. WEBBY.
SCENE3
FIRST GLOBAL HEAD IS FRANTIC
PENDING IMPROPER MANAGEMENT
OF THE OPERATIONS FUNCTION AND
POSSIBLE EFFECTS OF THE CHANGE
IN THE FINANCIAL ENVIRONMENT AS
A RESULT OF THE RECESSION.
Scene4
Auditors begin
investigations while
other smaller banks
crumble under the
effects of the recession.
Scne5
2 weeks
later
Auditor informs Mrs.
Webby of the results of the
audit.
Proposes a training session
to include all major
SCENE6
On going training on
Operations Management,
the changing financial
environment and effects
on key O.M. decision areas.
Interactive session and
MORAL OF THE
STORY
OPERATIONS
MANAGEMENT IS
VERY IMPORTANT
TO A BANKS
SURVIVAL
Importance?
Process and capacity design is a function of design of
goods and services, changes in the external
environment such as the financial environment and
the layout and location of facilities.
Life
Lifecycle
cycle
ofofbank
bank
processes
processes
Processes
Processes
Contd
Contd
Check
Check
Clearing
Clearing
Rate
of of
Rate
change
in in
change
innovation
innovation
Teller
Teller
Operations
Operations
Vault
Vault
Operations
Operations
Transaction
Transaction
Processing
Processing
ABM
ABM
Servicing
Servicing
Check
Check
clearing
clearing
The operations
manager must then
determine the
appropriate process
strategy to mitigate
possible issues in
designing process and
Implementing process
design without
affecting the other
decision areas under
consideration given the
linkages between
decision areas
Solutions
Identify process design
analysis strategy namely
Service Blueprinting which is
a process analysis technique
that lends itself to a focus on
the customer and the
providers interaction with
the customer.
Determine type of process
strategy would be necessary
Solutions
Provide the Separation
option by structuring some
services to be highly
interactive and customer led
or self service with simplicity
to ensure customer
interaction is in the heart of
the process design.
Solutions
Ensure that process is
designed with an
integrated approach
considering layout and
Human Resources.
Solutions
Rethink current process
and identify options such
as Business Process
Redesign to include
implementation of more
technology into process
design example Enterprise
Resource Planning (ERPs).
Financial Environment
Challenges
areas affected might also
include unemployment, more
virtual services, scheduling
cross borders due to global
positioning strategies and
ensuring the organization of
self directed teams are
appropriately configured to
meet the variations in
O.M. Issues
Availability of staff or size of staff
Absenteeism
Legal considerations such as hours
worked, wages, union contracts
Design of service areas
Meeting the expected waiting and
service time desired by customers
Behavioral, social, seniority and
status issues provide personal
challenges for Operations
Managers responsible for bank
Scheduling Solutions
Computerized teller
scheduling software
Cross-training to ensure
there are secondary staff to
facilitate business continuity
Employ part time personnel
to provide variable capacity.
Create budgeted times and
Effective scheduling in a
bank environment means
more expediency in
satisfying customer needs,
faster movements of services
through the facility which
creates more economical use
of assets both human and
non-human.
Other Considerations>>>
Determining a scheduling
approach whether backward
short term (beginning with due
date and scheduling final
operations first and other job
steps in reverse order) or forward
short term scheduling.
Determining scheduling criteria
(Maximizing completion time,
maximize utilization and
minimizing customer waiting
Layout Strategies
Layout Strategies are key
decisions that determine the
long-run efficiency of operations
in the financial environment such
as downsizing, mergers and
acquisitions and the various
types of product offering
innovated as a result of
changing in technology, a bank
may need to revisit or
LAYOUT SOLUTIONS
PROPOSED
Identify the type of layout, which
would feature a mix between
process oriented layouts and work
cell layouts.
Determine the types of material
handling requirements of the
overall operation to appropriately
plan for changes in capacity.
Determine capacity and space
requirement by researching and
LAYOUT SOLUTIONS
PROPOSED
Considerations must be placed for
aesthetics and the environments
which regards decisions about
customer breathing comfort,
determining the best location for
windows, color of work environment
and proximity between process
changes.
Determine servicescapes such as
ambience, spatial layout and
functionality, signs, symbols and
Human Resource
Strategy and the
Financial
Environment
Given the continuous changes in the
Human Resource
Strategy and the
Financial
Environment
The cost of attracting and retaining
SOLUTION#1-Labour
Planning
Labor planning is determining
staffing policies that deals with
employment stability, work
schedules and work rules.
In order to maintain
employment stability in the
banking sector as changes
occur in the financial
environment operations
SOLUTION#2-Job Classification
and Work Rules
Employing flexibility in work
schedules and staffing modules
implemented so as to improve
responsiveness and efficiency.
This can be done by reducing
job classifications and work
rule constraints and thus
promoting a flexible workforce.
Solutions
Ensuring the design of products
and services process is tailored
to meet and satisfy customer
needs.
Investing in research and
development so as to keep
pace with the dynamics of the
financial environment.
Solutions
Delaying customization of
service/product to as late in the
life cycle of the product as
possible.
Solutions
Divide services into small parts
and identify those that lend
themselves to automation or
reduced customer interaction
(implanting online bank and
reducing the need for ATM
machines reduces cost to
customers and increases
New Focus
Banks should aim at ensure there is a
overall strong approach towards
quality management which includes
implementing various quality
management programs aimed at
reducing customer complaints,
improving processes and overall
reduction of waste which will reduce
the cost of providing services to
consumers and also add value
Interactive Session
Questions and
Answers
Comments and
Concerns