Operations Management: Quality Improvement Initiative

Topics: Bank, Credit card, JPMorgan Chase Pages: 5 (1838 words) Published: April 14, 2013
Learning Plan 5
Quality Improvement Initiative
Identify a business that has recently launched a quality improvement initiative (Harley Davidson would be just one of many examples). Your business could be one that is primarily product-providing or one that is primarily service-providing. Do some independent research in order to provide an overview of this initiative and the results of their efforts. The overview should take the form of a two-page paper. Within that assignment, cite examples of any control costs or failure costs that you can identify, in addition to prevention costs, appraisal costs, internal failure costs, and external failure costs (all of these terms are defined in considerable detail in section 8.8 of your textbook). Submit this assignment to your instructor via the dropbox "LP5 Assignment: Quality Improvement Initiative." This assignment is worth 100 points and will be graded according to the following scale. Criteria|

1.| Student identified a business that recently launched a quality improvement initiative.| 2.| An overview of the initiative was discussed.|
3.| The results of the initiative were discussed.|
4.| Examples of any control costs or failure costs were cited.| 5.| Prevention costs, appraisal costs, internal failure costs and external failure costs were cited.|

Over the last several years, the banking industry has become highly regulated. In order for the doors to remain open, allowing the bank to continue serving its purpose of providing money services to the public, both through lending and through money management, banks find themselves competing for deposits. Not only do Americans lack trust in banks, but they know they have many choices in who they bank with. Most consumers have their assets split amongst several institutions so the challenge for any bank is satisfying the customer and ensuring that the customer keeps their share of their wallet at that institution. As a former personal banker of Chase Bank, I witnessed first-hand the customer service initiative that Chase undertook at the start of 2011. A U.S. consumer and commercial banking business and a leading global financial services firm, JP Morgan Chase, with assets of $2.3 trillion and operations in more than 60 countries, found themselves carrying the lowest rating of 2010 for big banks on the American Customer Satisfaction Index (ASCI).  As the result of this, they launched an initiative to restructure their customer service. The result was and continues to be favorable. The ACSI reported them as number 1 at the end of 2012 for big banks. Chase had the most significant increase in score allowing it to take the number 1 spot from Wells Fargo. In an interview with Emmett Vollenweider, Chase’s head of customer service experience, he credited the increased score to simplified fee disclosures and the ability given to front-line employees to resolve customer issues, especially through fee refunds. He indicated that they listened to customers feedback on what they liked and didn’t like about the banking experience, whether in person or by phone. (Dunn, 2012) They serve approximately one of out of every six Americans through more than 5,600 bank branches; 19,000 ATMs; mortgage offices; online and mobile banking; as well as relationships with auto dealerships, schools and universities. From the employee standpoint, the initiative shifted the entire focus of the retail side. Suddenly all incentives revolved around customer service scores achieved through customer surveys. While the profitability of a bank is vital, it is highly dependent on the needs of customers and the stage of the economic cycle. The generation of revenue occurs in a variety of ways including interest, transaction fees and financial advice. Fees and financial advice, however, constitute a more stable revenue stream and banks have therefore placed more emphasis on these revenue lines to smooth their financial performance. In...
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