A study of Operations

Management at SBI

Group No. 11 A
Guru|Murali|Pranshu|Satish|Vibhu
structure of the TALK..
ØIntroduction to SBI
ØProducts and Services of SBI
ØThe Home Loan Process
ØForecasting
ØAggregate Planning
ØInventory Control
ØTotal Quality Management
ØMaintenance Management
ØTheory of Constraints applied to SBI
ØLogistics and supply chain
Introduction to SBI
ØLargest state owned banking and financial company in
India
ØBank of Calcutta + Bank of Madras + Bank of Bombay =
Imperial bank of India
ØNationalised in 1955 and re-christened as “State Bank of
India”
ØRBI held 60% stake in it till 2008
ØThis was taken over by the central government
Numbers related to SBI
Ø16,000+ branches in India
Ø3500+ ATMs across the country
ØAsset base of $352 billion
ØAccounts for around 20% of total loans
Ø29th most reputed company in the world
ØAmong the top 10 brands of India
Ø
Products and services of SBI
Layout of SBI, XLRI

RM
Mgr  Vault and Lockers
c/ A

E.C. F.D.C T. C. Dy. MGr

CRC
euqeh C

CRO

ATM
Paperwork

Entrance
Manpower at SBI, XLRI
ØBranch Manager-1
ØOfficers- 4 (including Branch Manager)
ØClerical staff- 9
ØPermanent Guard- 1
ØMessenger/Sub-staff- 1

The home loan process
FORECASTING
Methods used
ØSimple Moving Average Method
ØTime -Series Method
ØFactor Analysis Method
ØExpert Systems Approach

Simple moving average


 Average= ( C0 + C1 + C 2  + C3 + ⋅⋅⋅+ Cn )/n

Where,


C0 is the latest value of the cash requirement

 Ci is the cash requirement i days ago.
 N usually is equal to 365

Back
Time - series Method

ØPredicts future cash requirement based on the past values

of variable or past errors
ØDiscovers the pattern in historical data series &
extrapolates that pattern into the future
ØBy the analysis of the random signals, a more accurate
prediction can be obtained
ØWorks well with all ATMs unless there is an abrupt change
in the environment or sociological variables that are
believed to affect the cash pattern

Back
Factor analysis Method

ØDetermination of various factors that influence the cash

requirement pattern, and calculating their correlation with
cash
ØIdentify the independent variables
ØIdentify the dependent variables
ØAssume a basic functional relationship between the
dependent and independent variables
ØDetermine the coefficients of the assumed functional
relationship
ØIterative process
Back
Expert systems approach
ØHeuristic models which are usually able to take both
quantitative and qualitative factors into account
ØA typical approach is to try to imitate the reasoning of a
human operator.
ØIdea is to reduce the analogical thinking behind the intuitive
forecasting to formal steps of logic
ØVery rarely used
Aggregate
Planning
Why is it needed?
ØServices cannot be inventoried
ØDemand for services is difficult to predict
ØService capacity must be provided at the appropriate place
and time
ØLabor is usually the most constraining resource for
services

What it consists of
Long range planning
ØRefers to the time frame which is considered for the
designing of processes
ØE.g. if a new customer relationship desk is being
considered in a branch office, then the planning that goes
behind staffing for it, management of the desk operations
etc.
ØCan also include policy planning

Back
intermediate range planning
ØRefers to the horizon extending over a period of about a
year
ØObserved in appraisal of sales of loans and other financial
instruments
ØTargets for adding new accounts, loan disbursement
amount etc. set

Back
short range planning
ØRefers to the planning that happens on either a daily basis
or once in a while, for a very short duration
ØObserved in planning of shifts for security guards
ØA new schedule is drawn up every week