Improving Bank Call Center Operations Project On Lean Six

Improving Bank Call Center Operations Project On The Lean Six Sigm

Improving Bank Call Center Operations Project on the Lean Six Sigma Green Belt course

First Wealth Bank outsourced its customer interactive services operations to Customer Calling Services (CCS) about 5 years ago, guaranteeing a minimum volume of 300,000 calls per year at a rate of $4.50 USD per call. Over recent years, the service performance of CCS has declined, prompting the bank to consider canceling the contract. Data on call durations, hold times, and QA ratings has been collected to analyze performance issues.

The main performance metrics of interest include: first call resolution (FCR) targeted at at least 75%, and resolution within 5 days (90% target). Regular QA inspections involve rating calls on a scale of 1-5 for friendliness, accuracy, and advice quality, with some inconsistency observed between QA analysts. The data includes voice recordings assessed by two analysts, John and Miranda, to verify the repeatability and reproducibility of QA activities.

CCS faces issues with retaining experienced staff and hiring delays, which affect service quality and performance. They seek to apply Lean Six Sigma methodology, with a goal to improve operations within 6-8 months, maintaining average handle time (AHT). The project aims to enhance call center efficiency, quality, and reliability, thereby avoiding contract termination.

Data Tables

Table 1 presents monthly data over two years on number of representatives, total calls, AHT, and performance measures such as FCR and 5-day resolution percentages. Table 2 shows QA rating assessments for 20 voice recordings by two analysts, John and Miranda, used to analyze measurement system reliability.

Exercises and Requirements

The project requires analysis in three key areas: process capability indices, measurement system analysis (MSA) for QA ratings, causes of FCR failure, solutions, and failure modes via FMEA. These analyses will inform targeted improvements to meet service standards and operational efficiency.

Paper For Above instruction

This paper provides a comprehensive analysis of the challenges faced by First Wealth Bank’s call center operations, applying Lean Six Sigma principles to identify issues, analyze data, and propose solutions. It discusses process capability indices, measurement system analysis, root causes of performance failure, and potential corrective actions.

Introduction

Customer service quality is vital for banking institutions, directly affecting customer satisfaction and retention. First Wealth Bank’s decision to outsource call center services to CCS aimed to reduce costs while maintaining high service levels. However, deteriorating performance over two years has prompted a need for rigorous analysis and process improvement using Lean Six Sigma methodologies.

Particularly, the bank focused on key performance indicators such as first call resolution (FCR) and resolution within 5 days to evaluate call center effectiveness. Data reveals fluctuations in these metrics, often falling below targeted levels. Furthermore, the measurement of service quality through QA ratings introduces variability, necessitating a detailed assessment of measurement system reliability.

Process Capability Analysis

Process capability indices, Cp and Cpk, quantify how well a process meets specified tolerances. Focusing on first call resolution (FCR), with USL=100% and LSL=75%, data from Table 1 allows calculation of these indices. Based on the monthly FCR data, we determine the mean and standard deviation and compare these with the specification limits to evaluate process performance.

For example, assuming an average FCR of approximately 75% and a standard deviation derived from the data, the Cp index indicates the potential capability of the process, while Cpk accounts for process centering. An analysis reveals whether the process is capable of consistently meeting the target FCR or requires improvement. The findings suggest that during certain months, the process is either capable or exhibits potential capability, but months with lower FCR indicate the need for process adjustments.

Measurement System Analysis (MSA)

The reliability of QA ratings is crucial since they affect the evaluation of call quality and consequent process decisions. Table 2 presents ratings by two analysts, John and Miranda, on identical voice recordings, facilitating an assessment of measurement repeatability and reproducibility. Conducting a Gage R&R study involves calculating variability attributable to raters and machines versus the total variability.

The analysis uses metrics such as the percentage of total variation due to repeatability and reproducibility, with acceptable thresholds generally under 10%. Results indicating high variability imply unreliable measurement systems, suggesting the need for calibration, training, or standardization of rating procedures. Reliable measurement systems are essential for accurately assessing call quality and tracking improvements.

Root Cause Analysis of FCR Failures

Several potential causes underpin CCS’s failure to meet FCR targets consistently. Primary issues include inadequate staff training, high employee turnover, insufficient knowledge management, and suboptimal call handling processes. Other contributing factors involve inadequate technological support, such as outdated call routing and data retrieval systems, and performance pressures leading to rushed interactions.

Analyzing these factors through tools like the Fishbone Diagram or 5-Whys technique highlights that many issues stem from organizational and process deficiencies rather than individual performance alone. Addressing these root causes necessitates comprehensive process redesign, ongoing training, and technological upgrades to empower agents with the necessary resources and knowledge.

Proposed Solutions for FCR Improvement

To eliminate causes of FCR failure, solutions encompass a range of interventions. Standardizing call handling procedures, enhancing agent training programs, and implementing knowledge management systems are critical steps. Automation of data access and integrating AI-based support tools can assist agents during calls.

Furthermore, fostering a performance-driven culture through incentive programs and continuous feedback loops encourages agents to resolve issues efficiently. Management should also focus on staff retention strategies, such as competitive compensation, career development, and recognition programs, to retain experienced agents who contribute positively to FCR targets.

Failure Mode and Effects Analysis (FMEA)

Applying FMEA involves identifying potential failure modes in the proposed solutions and assessing their effects. For example, if communication protocols are standardized but not adequately followed, this failure could lead to inconsistent call resolutions. The risk priority number (RPN) calculations guide prioritization of corrective actions based on severity, occurrence, and detection ratings.

Implementing robust monitoring, staff training, and feedback mechanisms are recommended to mitigate high RPN failure modes. Continuous FMEA reviews ensure ongoing risk management and process robustness, supporting sustained improvements in call center performance.

Conclusion

Enhancing First Wealth Bank’s call center performance through Lean Six Sigma principles requires a multi-faceted approach. Process capability analysis identifies current performance gaps, measurement system analysis ensures reliability of performance data, root cause analysis guides targeted interventions, and FMEA facilitates proactive risk management. By adopting standardized procedures, investing in agent development, and leveraging technology, the bank can improve FCR, achieve service targets, and retain valuable client relationships within the tight timeframe of 6-8 months.

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