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Improve Operational Profitability – Financial Services
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Improve Operational Profitability – Financial Services

The client

A major UK bank with 8 operating centres that required a UK wide end to end systems transformation programme for its Cash Processing Business.

 

The challenge

As one of the only bank-owned cash processors in the UK, our client needed to take significant cost out of the business in order to remain competitive in the market. This challenge came following a successful 2-year Lean programme which saw costs reduce by over 25%. Subsequently, the business was struggling to see where additional breakthrough changes could be made.

Advice was also needed on how they could potentially rationalise sites to reduce cost whilst still maintaining cash delivery service to one of the largest UK networks of ATMs.

 

The solution

  • Reinvigoration used an estate-wide approach to optimising the performance of the cash business based on systems thinking principles, extending the boundaries and complexity of improvement.
  • Each centre was analysed as a separate system to inform improvements specific to the local characteristics and system conditions found there.
  • Given the complexity and sheer quantity of the variables involved in the UK cash processing business, a systems approach was designed that would be sensitive to multiple hard-systems variables (machine performance), but also consider significant soft systems impacts from people.
  • To analyse such a complex business, dynamic systems modelling software was used to recreate the centre by centre operations. Once baselined, improvement experiments were run to identify opportunities in a safe environment ahead of implementation.
  • As the system conditions in each centre varied, each ended up with a variation on the standard operating model. These were implemented to substantially increase performance.

 

The results

  • Overall benefits of the programme were in excess of £12m.
  • Breakthrough improvements were achieved across the estate and the approach used highlighted improvements that were previously deemed impossible, including granular shift optimisation, machine utilisation uplifts and significant CAPEX spend avoidance.
  • During the transformation substantial performance uplifts were achieved across the estate which provided information for key strategic decisions.
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