GNO E2E Update to SJH

BusinessReengineering

& Quality

“Moving at the Speed of Change”

Kaizen in Financial ServicesKaizen in Financial Services

Business Re-engineering and Quality

WCBF Presentation and Discussion

10/15/09

4th Annual WCBF Global Lean, Six Sigma and Business Improvement Summit & Industry Awards

Kaizen DefinitionKaizen Definition

Kaizen (Japanese) = “To Make Better”

Keys to Kaizen Success Small incremental changes that add up to big improvements Usually low-cost / no-cost solutions that can be implemented every

day Becomes a philosophical shift in doing work, constantly looking for a

better way to eliminate “waste” in a process

Kaizen uses Lean to target the 8 wastes Overproduction of work in process Waiting Transportation of files/documents/information Non-value-added processing Excess finished inventory Defects Excess people motion Underutilized people

95% Non-Value

Added

5% Value Added

Typically, 95% of all lead time is non–value added

Kaizen at homeKaizen at home

■Toast - Simple process- Everyone knows how to make toast

■How long does it take you to make toast?

■How fast could you make toast?

Kaizen at HomeKaizen at Home

■Potential improvements- Where is the bread stored?- Where is the butter stored?- What type of “butter” are you using?- What type of bread is the customer wanting?

• How do you know?

- What type of toaster are you using?- How do you know what the optimal time is?- What else could you be doing during the actual toasting?

Kaizen (PREP) at PershingKaizen (PREP) at Pershing

Pershing is a member of every major U.S. securities exchange, and its international affiliates are members of the Frankfurt, Irish, and London Stock Exchanges

Offer a comprehensive network of facilities around the world, which enables us to support financial organizations in approximately 64 markets and deliver dependable, 24x7 customer service

Over 5,000 associates who are highly focused on supporting the needs of our customers

Founded in 1939, Pershing, a BNY Mellon company, is a leading global provider of clearing and financial business solutions

Service Excellence

Operational Support

Trading Services

Flexible Technology

Investment Solutions

Practice Management

10

9371

4 8

Black Green Lean MBB Executive Belt

2008 Total Six Sigma Belt Certifications7% of total headcount

Six Sigma DMAIC

Lean Sigma

Kaizen – Rapid Improvement

Process Excellence Program

Over 300 projects and 800 employees engaged since inception

Over 300 projects and 800 employees engaged since inception

Quality at DTCCQuality at DTCC


Pre-Event Planning PREP Event Post-Event Follow-Up

DMAIC Stage

Define, measure Measure, analyze, improve

Improve, control

Goals To define project objectives and gather initial project data/information

Analyze top root causes, and develop improvement actions

To implement solutions and develop plan to ensure long-term control

Key Results Identify participants, schedule meetings, gather initial data

Identify key customer tasks, analyze defects and process, generate and refine solutions

Finalize improvements, receive management approval, implement improvements

Actual Hours

2-6 hours 4-16 hours 2 hours to wrap up, additional hours based on complexity of improvements

Timeframe 1-2 weeks prior to event

2 weeks 1 week to wrap up, additional weeks based on complexity of improvements

Improvement Matrix – Selecting the Project ApproachImprovement Matrix – Selecting the Project Approach

Focused Project

Focus: Improve key sub-process

Goal: Big effectiveness / efficiency improvement

Lead: Green Belt / Yellow Belt / Project Mgr.

Tools: Blended methodologies, best practices, change management

Source: Corporate Goals, Process Excellence, Business Performance issue, Regulatory/Risk concern, Green or Yellow Belt certification requirement

Reengineering

Focus: Radical Process Change

Goal: Dramatic effectiveness improvement

Lead: Sr. Leader or Black Belt

Tools: Benchmarks, blended methodologies, external experts, change management

Source: Corporate Goals, significant Regulatory or Risk concern

Kaizen

Focus: Small issue with sub-process

Goal: Resolve issue / make improvement

Lead: Process Owner, Kaizen Facilitator

Tools: Basic tools – blended methodologies

Source: Process Excellence, Business Performance issue, Yellow Belt certification requirement

Problem Solving / Process Fix

Focus: Structured continuous process improvement

Goal: Continuous effectiveness / efficiency improvements

Lead: Kaizen or Brainstorming Facilitator

Tools: Basic tools - blended methodologies

Source: Process Excellence, Business Performance issue

Lo

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f P

rob

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isk

Hig

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Narrow Scope of Problem Broad


■Six Sigma DMAIC projects too lengthy

■Resource commitment difficult to sustain

■Training and Green Belt mentoring efforts not cost effective

■Needed a quicker, more effective way to drive change

PREP (Pershing Rapid Enhancement Process)

Is a short, intensive workshop

to identify process improvements and implement controls that

ensure long-term success

Why PREP at Pershing:


■Completed eight PREP sessions targeted around Service Center, our online transaction application

■The goals of these sessions were to:

1. Reduce transactions sent to Pershing as Not in Good Order

2. Streamline workflows to minimize Target Service Level breaches

3. Improve accuracy by reducing reopened transactions

What We Did:

Internal Partnering Initial Events Executive Exposure

Kaizen Introduction Enterprise Deployment SOP

Events in all functional areas Additional trained Facilitators Kaizen as a part of corporate

vocabulary

Self hosted events 5-10 events / quarter External engagement

Deploying Kaizen at DTCCDeploying Kaizen at DTCC

Reducing time to pay invoices

Identifying customer call requirements

Streamlining securities processing

Eliminating manual announcements of historical issues

Streamlining Return of Over Payments

Designing an automated Proxy receipt

Identifying IT request completion

Designing a process for on-boarding compliance

Customer Satisfaction Survey Deployment

Eliminating Redundant Automation Solutions

Past events at DTCC


■Tangible Benefits:- Not in Good Order transactions currently down 30%- Target Service Levels performance improved and targets were tightened- Transactions reopened by the customer decreased 55%- Improved project cycle time

■Intangible Benefits:- Increased customer satisfaction- Improved quality culture and knowledge- More enjoyable Six Sigma experience- Increased interest in process managers for analysis

Results:


■Additional analysis being done with other Service Center teams

■Technique added to Six Sigma training curriculum

■Analysis to be performed for other transactional systems

What’s Next:

Kaizen Cycle @ DTCCKaizen Cycle @ DTCC

■ Identify potential issue■ Discuss the idea with your

manager- Collect data on the issue

- Identify all interested parties

■ Contact BRQ to facilitate a Kaizen event

■ Complete any follow up activities (additional event identification)

Identify follow up activities

Complete Event

Identify Issue

Discuss and Prepare

Tips to identify Kaizen opportunities• Does a process seem too complicated?• Does it feel like there is a straightforward

solution?• Do you see non-value add (waste)

activities in a process?• Are multiple departments involved?• Is a rapid implementation or fix needed?

Become a Kaizen FacilitatorBecome a Kaizen Facilitator

■ DTCC Certification- Internal training

■ Experience- Previous facilitation and team leader

- Manager level or higher

- Empowered change agent

■ Training- Participate in an event

- Complete the Train the Trainer

- Co-Facilitate and event

- Facilitate an event with a mentor present

GNO E2E Update to SJH

Documents

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