Reconciliation is a non-value added process and consumes time and efforts to resolve. We don’t wish reconciliation volumes to grow alongside our business! Over 800+ unmatched entries are allocated on the source code every day, of which 25% are newly allocated. Over 100+ investigation advices are sent every day on the new allocations.Over 42% of unmatched entries get manually matched every day.A better system of providing reference numbers can significantly reduce or eliminate the need to manually match the unmatched entries, thereby reducing the time and efforts spent on them.The goal is to reduce unmatched entries by 70%, which includes new allocations and ones which get manually matched after preliminary investigation.
The Solution
Lean Six sigma framework was used to arrive at solutions.
- Map the current state using current state value stream mapping.
- Identify improvement opportunities.
- Address improvement opportunities (uses Lean and Six Sigma techniques)
| Challenges | How addressed? |
|---|---|
| Reconciliation is a ‘reactive’ process | Designed ‘real time’ reconciliation and move ‘doubts, clarifications, exceptions, early enough in process flow. |
| Managing global stakeholders | 6 months’ project execution plan fixed and communicated in advance to all stakeholders. |
| Routine work takes a toll on time on project work. | Policy created and communicated to all concerned to spend a minimum 25% of routine time on project. |
| Key information (data) readily unavailable. | Integrated data collection on project with routine data collection and reporting. |
| Some improvement ideas in span and control of customers. | Orientation to customers and client services representatives, and other internal stakeholders on using correct references during wire transfers. |
Two key reasons contribute towards successful improvement initiative–Top management involvement and Process stakeholders Commitment. Science provides direction for thought and action.
The results
57% reduction in unmatched entries reported by the source code. 5 categories of ‘unmatched’ entries were completely eliminated using ‘mistake proofing’ principles. Project produced an annualized savings of 85,000 Euros.
Why us and what next?
“We combine the power of Science and People Engagement to ensure improvement journey is enjoyable and exciting! We help people to become passionate to set higher goals and achieve them. Then we ensure everyone learns tools and techniques best fit for their chosen goals. We handhold till people come up with their success story.