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LA TROBEUniversity

ATM OPERATION IMPROVEMENT

Cohort 18

1. Nguyễn Minh Tú (Team leader) ID: 17589563

2. Hồ Sỹ Hải ID: 17498004

3. Nguyễn Minh Hà ID: 17589190

4. Lê Vân Hương ID: 17589310

5. Nguyễn Bảo Khanh ID: 17589347

6. Nguyễn Viết Sao ID: 17498458

7. Đỗ Thị Thu Thủy ID: 17589528

8. Đào Kim Hải ID: 17589238

9. Lê Thu Trang ID: 17506198

Cash supply and Repair ATM problem

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Improve

Analyze

Mesure

Define

Control

AGENDA

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LEAN SIX SIGMA – DMAIC METHOD

DEFINEDefine Opportunity

D M A I C

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SUMMARY

BUSINESS CASE

Techcombank is Vietnam Technological and Commercial Joint- stock Bank The Techcombank’s strategy is: "Become the number one bank”.

According to orient /directional of Net developing center, Techcombank ATMs will expand the number of ATMs installed in all city and improve the quality of ATM services.

This research will focused on the reduction of the downtime of ATM and the cash out.

a) Analysis of processing time to repair and supply money.

b) Calculation the loss of Techcombank when ATM’s breakdown.

Current Sigma level is 3.5

GOAL STATEMENTTarget: Increase the Up-time rate from 95.5% in 2009 to 97% in 2010

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TYPE OF DEFECTS DEFINE WHEN ATM’s BREAK-DOWN

Repair ATM’s problem Process

Out of cash Card Reader

Pin pad

Dispenser

Network

Power

ATM Supply money Process

Uptime rate of 6 last month of 200995.5%

2-3 days Pending supply the broken equipments

Supporting time of Vendor is long

Responding time of Branch for confirmation to provide the money is long

ATM breakdown

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MEASUREMeasure Performance

D M A I C

LEAN SIX SIGMA – DMAIC METHOD

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DATA COLLECTION PLAN USING THE 5W- 1H METHOD

WHAT: What type of data will be collected? What equipment are you going to use?

Data on E2E time for supplying money and repairing the ATM’s breakdown by using forms designed by project team.

WHY: Why are we collecting this data? What will the data tell us?

This data helps us evaluate the effectiveness of the performance

WHO: Who is going to be doing the measuring?

• 3 ATM Operation team of Sales & Development Division.• IT officer

WHEN: When will the data be collected?

May and June

WHERE: Where will the data be obtained? Is it out of SAP, or is it available somewhere else. Identify where.

Log on system. Record File by operational team

HOW MUCH: What volume of data will be collected?

The sample to collect must be at least 30 samples/type of defect;

Total of samples : 150~200 samples.

HOW:The method to collect data

The ATM Operational Team measured actual time on processing and combine the data collected on IT system for accurate figures

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ANALYZEAnalyze Opportunity

D M A I C

LEAN SIX SIGMA – DMAIC METHOD

ANALYZE THE ACTUAL ATM OPERATION MANAGEMENT PROCESS

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ATM Operation Management

Dept.

IT Center 4 Branch provide the money to ATM Team

Vendor/ Suppliers

(NCC)

ATM Operation Management Process include 2 activities: Repair ATM’s problem Process Supply money Process( Arrange the money, supply money)

Sigma Quality Level - Defects Per Million Opportunities (DPMO)

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Tally for Discrete Variables: DEFECT/OK DEFECT/OK Count CumCnt Percent CumPct DEFECT 101 101 0.76 0.76 OK 13080 13181 99.24 100.00 N= 13181DPMO = Defect percent * 1000000 / 1 = 0.0076*1000000 = 7600

DPMOSigma Level DPMO

Sigma Level

       

1000000 -3.4 158655 2.5

999997 -3.0 66807 3.0

999968 -2.5 22750 3.5

999767 -2.0 6210 4.0

998650 -1.5 1350 4.5

993790 -1.0 233 5.0

977250 -0.5 32 5.5

933193 0.0 3.40 6.0

841345 0.5 0.29 6.5

691462 1.0 0.02 7.0

500000 1.5 0.00 7.5

308538 2.0 0.00 8.0

Sigma level = 3.5

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CAUSE AND EFFECT DIAGRAM OF CASH-OUT

ATMCash forReplacingDelay

Environment Methods

Material

Machines

Personnel

Gender

Age

Lack of staff

Experiences

registerLack of cash

Not available ATM

Money quality

Lack of value money

Lack of money

failure Wait time till detect

Count money

Approve

Detect failure

Frequency

Weather

Traffic distance

Out of Cash

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COUNT OF DEFECTS AND TASK TIME FOR REPAIR OF EACH ATM TYPE

DEFECTS - FMEA

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PARETO - DEFECT TYPES 2010

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AVERAGE %

Disconnect 77%

Card reader

19%

Close 3%

Dispenser 1% Down - up_1 6567554 1614603 690960 2797Percent 74,0 18,2 7,8 0,0Cum % 74,0 92,2 100,0 100,0

Defect types OtherCloseCardDisconnect

9000000

8000000

7000000

6000000

5000000

4000000

3000000

2000000

1000000

0

100

80

60

40

20

0

Dow

n -

up_1

Perc

ent

Pareto Chart of Defect types Oct 2010

Down - up_1 7580180 2580813 369352 359415Percent 69,6 23,7 3,4 3,3Cum % 69,6 93,3 96,7 100,0

Defect types OtherDispenserCardDisconnect

12000000

10000000

8000000

6000000

4000000

2000000

0

100

80

60

40

20

0

Do

wn

- u

p_

1

Pe

rce

nt

Pareto Chart of Defect types Dec 2010

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IMPROVE Improve Opportunity

D M A I C

LEAN SIX SIGMA – DMAIC METHOD

CAUSES - SOLUTIONS

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No. Causes Solutions

1 • Decentralize the cash supply to 5 Super

Branch

• Extend the operation team

2 The priority of Branch for the

supplying money

Proposal to increase the reserve for

supplying money of Branch

3 Supporting time of

Vendors/suppliers is long

Discuss carefully with suppliers about

contract terms

4 The location and design of ATM

cabin

Install the ATM with conveniences

5 Substitution of Equipments Proposal to buy the reserve

PROCESS BEFORE - AFTER

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Cut steps non value- added

Cash Supply Should-be Process

ATM Team of BranchManager of

BranchATM Department

Follow ATM monitor, checking

ATM status

Detect failure

Type of failure

Making the List of fail ATM for each

failure type

Making plan for supplying money

Define the total of money for supplying

Approve

Y

N

Export the money Tray from store

Get the money and count the

money

Input money in seal tray

Transfer the money to ATM

Input the money in ATM

Non Value Added

Non Value Added Require

Value Added

Make the form for supplying money

Making budget plan

PROCESS BEFORE - AFTER

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PROCESS BEFORE - AFTER

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Cut steps non value- added

BEFORE

PROCESS BEFORE - AFTER

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Cash Supply Should-be Process

ATM Team of BranchManager of

BranchATM Department

Follow ATM monitor, checking

ATM status

Detect failure

Type of failure

Making the List of fail ATM for each

failure type

Making plan for supplying money

Define the total of money for supplying

Approve

Y

N

Export the money Tray from store

Get the money and count the

money

Input money in seal tray

Transfer the money to ATM

Input the money in ATM

Non Value Added

Non Value Added Require

Value Added

Make the form for supplying money

Making budget plan

AFTER

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CONTROLControl results

D M A I C

LEAN SIX SIGMA – DMAIC METHOD

Decentralisation – New process

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- Remove at least 3 steps from the process

- Decrease task time to supply money by 29% (about 55 minutes/day)

- Improve the total average time by up to 71%

020406080

100120140160180200

187

132

Task time to supply money to ATM

Centralisation Decentralisation

Tim

e (m

inut

es)

29%

Centralisation Decentralisation0%

20%

40%

60%

80%

100%

120%

78.61%

96.21%

Lean efficiency

Uptime compare between Jun – December 2009-2010

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PeriodATM Service Availability

Performance (%)

Jun – Nov Avg.

December – February

Avg.

Year 2009

95.1 97.1

Year 2010

96.7 97.3

Uptime rate of 201097%

BENEFITS AFTER IMPROVMENT

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Intangible benefit- Increase customer satisfaction, the ATM always be ready to all customer services - Improve efficiency of the ATM Operational management Process - Reduce additional idle time on breakdown ATM- Team member be able to learn more about Six Sigma- Increase teamwork among team members

Tangible benefit

Revenue Achieved

Total fees 97% uptime – Total fees 95.5% uptime = Achieved fees

VND 2,472,948 – VND 2,361,665,340 = VND 111,282,660/YEAR

OR VND 9,273,555/MONTH

FTE saved:(55*24) / (60*8*24) = 0.1 FTE per month

CONCLUSION

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REFERENCE LIST

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THANK YOU

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