Download - North West Constructive Bank Team Members: Alvino Johan Arfan Wiraguna Clara Nadya Puspasari
North West Constructive Bank
Team Members:• Alvino Johan• Arfan Wiraguna• Clara Nadya Puspasari
INTRODUCTION
Name : Andy Curtis
Position : Mortgage Operation Manager of North West Constructive Bank
Responsibility: Running the new applicationsprocess by leading a project team to consolidate the Bank original three mortgage-processing centres (‘Northern’, ‘Southern’, and ‘Western’ applications) into one new site. Advantage: Could make significant savings by consolidating all our operations.
Main Problem: Worse turnaround time
The new applications process
Input Underwriting Offer Completion
Demand• The ‘discounted rate’ product had been seen as very
attractive by the market
• Unfortunately, when the news of the imminent demise of the discounted rate product broke there was a final surge in demand
Problems with the new process
• ‘First, the move itself was bound to cause some disruption and has created an uncertain and unstable environment in which to cope with our other problems’
• ‘Second, the last-minute rush on our discounted rate product meant an extra load above what we expected and hit us just at the wrong time’
• ‘Third, although we have only been operating with the new layout for four weeks, it’s clearly not working as it should’
A list of the third point key problems:
• Staff were having to move about more than at the old centres
• Therefore because of the effort in retrieving a file, staff were keeping it on their desk, out of the filing system, for longer than necessary, ‘in case it was required again’, making it unavailable to any other member of staff
• All the scanning machines were located together in one location to maintain a high utilization of the machines, but again, this meant that staff had further to walk
• There was no clarity of flow
RBC Bank - Mortgage Process Guide
• Example
• The old centres
The volume–variety position
The volume–variety position
• The new centres
8
Redesigning the Process: Option 1
Keep the process, as it is at the new
centre
Data entry stage serving all regions
The three regions each having their
own underwriting, offer, and
completion
Not disrupting the existing way of working
Maintaining the organizational coherence of the three teams
Redesigning the Process: Option 2Organizing 4 sequential teams of the 4 stages of
data entry, underwriting, offer,
completion
Offer team would probably still have to
retain some local ‘cells’ within the process
- More appropriate for the higher
volume. - Allow some skills to
be developed.
- Affect the morale of the existing regionally based
teams.- The offer team have to
learn the local knowledge of the regional market.
Redesigning the Process: Option 3
Reorganizing into 4 teams of the 4
stages within the process
Operating the underwriting stage and offer stage in
parallel
Short throughput
times
Risky, especially with such high
levels of recycled
applications
We choose: OPTION 2• Clear flow• Scanning machines and file storage issues had been addressed• Can eliminate the demand rush of ‘discounted rate’ product
Recommendation: Option 2
• Training skill per stage
• Team building to bound the employees of each stage
• Underwriting and Offer Stage: Learn more about local knowledge of each regional market. Share information between colleagues. Still retain the local ‘cells’ within process.
Recommendation: Improvement
• Policy to keep and return the file.
• For the long-term improvement, the company should make Standar Operating Procedure, for offer stage.