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Case Study
Supporting Operations Management at Standard Bank
A Case Study by Bloor Research Author : Simon Holloway Publish date : September 2010

Standard Bank, by using QPR software for their Six Sigma initiatives, were able not only to map the processes to a standard, but to produce measures aligned to higher level objectives, with targets that were realistic and achievable, resulting in hard savings Simon Holloway

Supporting Operations Management at Standard Bank

Introduction
The need to streamline and adapt to reduce time to market, eliminate waste and meet customer demand has quickened as a result of expanding global competition and uncertain economic times. Organisations need to critically evaluate the performance and agility of their operations. The manufacturing sector has gained benefits from adopting a number of methods such as lean manufacturing and Six Sigma to take control of operations management and make it leaner and meaner. What has become clear over the last few years is that these techniques can be applied to the services sector as well. In today’s service sector marketplace, it is vital to make the processes that deal with the operation of business not only effective and efficient in terms of customer, supplier and employee use, but also compliant with regulations both statutory and organisational. In addition, these processes have to support the implemented business strategy of the organisation. Operations Management is about measuring and managing effectively; this includes leveraging management techniques such as Six Sigma to determine the criteria for measuring the process and, as the ability to manage the resource, employees or 3rd parties to deliver the required services in the desired timeframe. In 2005, Standard Bank faced these issues and embarked on a Six Sigma project with a difference—which was the need to simplify as well make their operation business processes more effective and efficient.

A Bloor Case Study

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© 2010 Bloor Research

Supporting Operations Management at Standard Bank

Standard Bank
Standard Bank is the largest of the four major banks headquartered in South Africa. Since its foundation in 1862, Standard Bank has established itself as a household name and is one of the most recognised brands in the country. The bank is a public company listed on both the Johannesburg Stock Exchange, and on the Namibian Stock exchange. In 2008, ICBC, the International Commercial Bank of China purchased a 20% share of Standard Bank. The bank had total assets of over R1 333 billion (approximately $172 billion) at 30 June 2009 and employs more than 50,000 people worldwide. The three main pillars of business are Personal and Business Banking, Corporate and Investment Banking, and Wealth. Personal and Business Banking (PBB) provides banking and other financial services to individual customers and small to medium sized enterprises in South Africa, the rest of Africa, and Argentina. The group contributes around 34% of the Standard Bank Group’s earnings. A Centralised Operations area consists of just under 5,000 people, and is responsible for all aspects of operations within PBB. A Performance Measurement Capability within Business Operations is responsible for the measurement of people and process.

© 2010 Bloor Research

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A Bloor Case Study

Supporting Operations Management at Standard Bank

Facing the challenges
Back in 2005, the bank faced some major challenges in the way they ran their operations in PBB. These included:

• The business was structured in a product-centric fashion, with individual silo operations for each product group. This meant that functions were duplicated across each business operations area, with each area maintaining and managing its own service capabilities.

• There was no single view of the customer. This was due to the lack or porosity of integration between the many large backend systems that were used by PBB to run its...
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