Name: Blanco, Evette Leila Angela D.

Operations Management (TQM)

Section: LM3A Prof. Edgardo O. Gonzaga
Assignment #8 – Process Approach
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1. Summarize Process Approach

“A process is a set of interrelated or interacting activities that use inputs to deliver an
intended result.” The purpose of the process approach is to provide consistent product
and services to the requirements to enhance customer satisfaction. The process
approach is the most effective efficient method to meet this purpose, it makes us to be
able to provide consistent product and services to the requirements to enhance
customer satisfaction. The PDCA concept provides a simple and effective approach for
solving problems and managing change. It enables businesses to develop hypotheses
about what needs to change, test these hypotheses in a continuous feedback loop, and
gain valuable learning and knowledge. It promotes testing improvements on a small
scale before updating company-wide procedures and work methods. The turtle diagram
is a visual tool that can be used to detail, in a very precise manner, all of the elements
of any given process within an organization . It can be used to identify applicable
clauses of the relevant standards and can also detail any applicable legal and other
requirements the process must satisfy. The Turtle Diagram is made up of 6 areas, all
surrounding the process, which is considered the turtle body. The 6 areas are: inputs,
materials & equipment (what), support processes, procedures & methods (how),
outputs, competence skills & training (whom), and finally performance indicators
(results).

2. Present a case study about Process Approach

Case Study: A consumer division of a Global Bank

This case study relates to a European office of a global bank which has over 300
branches. Per annum, it ƒ

 receives 11 million documents ƒ

 makes 160 million payments ƒ
 processes 35 million home banking transactions ƒ
 receives 14 million telephone enquiries.

The challenges that the bank faced included ƒ

 the need to significantly decrease their expense ratio (expense to revenue) as

the initial levels were above the industry average, and, in order to effectively
compete, this needed to reduce to below the industry average to gain a
competitive edge; ƒ
  the need to increase the time spent by branch staff with customers rather than on
administrative activities (providing the opportunity of increasing customers
service, satisfaction, and revenue); ƒ
 the desire to build long and deep relationships with customers; ƒ
 better use of staff while increasing employee satisfaction and providing
customers with stable service, even in peak periods; ƒ
 a need to compete in the marketplace and enter new markets.

In short, they wanted to increase the efficiency and effectiveness of their operations to
ensure a high level of standardization, consistency, and predictability as well as a low
level of errors, all while increasing customer service.

The approach included a holistic approach from process analysis to process

management. It went through the following phases: ƒ

 Starting out: process awareness and training, process documentation and

simulation to ensure that people understood the processes and the importance of
managing them. ƒ
 Capacity planning: optimizing the skills to achieve effective and efficient staffing
levels. 2 ƒ Workflow: the automated routing of electronic documents and
transactions to balance available skills and processing speed. ƒ
 Gathering of all process data for detailed analysis. ƒ Activity based costing:
calculating the costs at a detailed level to support the right management
decisions. ƒ
 Ongoing monitoring: a control center to support the business in operations. It
continuously predicts the required capacity needed in the business to enable
optimal assignment of resources and the provision of customer service.

The results have been nothing short of impressive. It has ƒ

 reduced expenses ratio by half ƒ increased the customer facing time within the
300 branches from 19% to more than 70% ƒ
 reduced errors from 25–30% to 3–5% ƒ
 has increased staff and customer satisfaction significantly, as measured by
surveys.

Source:

https://www.youtube.com/watch?v=Ua_Kj0MOMLE

https://www.bptrends.com/publicationfiles/THREE%2007-08-COL-DownUnder-
Case%20Studies-JestonNelis.pdf