iowa finance authority title guaranty division team tg wip · kaizen methodology kerry ......
TRANSCRIPT
Iowa Finance Authority
Title Guaranty Division
Team TG WIP Kaizen Event Report Out
December 15, 2006
Title Guaranty Division
2
Background Karen
This event addressed the
Title Guaranty process from
when a commitment is
requested until the final
certificate is issued.
Title Guaranty Division
3
Team Members Karen
Team leader: Karen Lodden, DNR Bret Mills, (IFA – Executive Director)
Steve Harvey, (IFA – Director of Operations) Loyd Ogle, (TGD – Director)
Joanna Wilson, (TGD – Attorney) Linda Berg, (TGD – Marketing)
Kerry Carman, (IFA – IT) Judy Peterson, (TGD – Division Production)
Linda Mahoney, (TGD – Attorney Production)
Consultant: Brent Jameson, Guidon Consultant: Rob Allen, Guidon
Title Guaranty Division
4
Objectives / Goals Linda B.
Objectives:
1. Improve internal cash controls.
2. Improve customer service relative to time, while maintaining quality.
3. Increase market share and hence, revenue.
4. Free up staff time from production for training and marketing.
Goals:
1. Reduce commitment processing time by 50%
2. Reduce lead time for final certificate processing by 50%
3. Reduce work in process to 3 days
4. Reduce the number of steps in the process by 50%
5. Reduce the number of handoffs by 50%
Title Guaranty Division
5
Kaizen Methodology Kerry
Clear objectives
Team process
Tight focus on time
Eliminate waste
Quick & simple
Creativity vs. capital
Immediate results (“quick wins” to add value)
5S “mindset” – sort, set order, shine, standardize, sustain -- to support event activities
Title Guaranty Division
6
Old Process Linda M.
IFA Title Guaranty Division
Un
de
rw
rite
rU
nd
erw
rite
rP
ro
ce
sso
rP
ro
ce
sso
rS
up
ervis
or
Ce
rtifica
tio
n
Su
pe
rvis
or
Ce
rtifica
tio
nR
ece
ptio
nis
tR
ece
ptio
nis
tM
ail C
lerk
Ma
il C
lerk
TG
FA
X
Are
a/P
eo
ple
TG
FA
X
Are
a/P
eo
ple
Proceed with fabricationProceed with fabrication
Su
pe
rvis
or
Co
mm
itm
en
t
Su
pe
rvis
or
Co
mm
itm
en
tC
usto
me
rC
usto
me
r
send application
Receive
application
Receive
application
Forward to
Commitment
Supervisor
Receive
application
(email)
Receive
application
Forward by email
to Commitment
Supervisor
Follow-up call
Sort by T & D only
Property in
system?
Print one copy of
application and
PTO
Log into CAP
Receive
application
Fill out tally sheetAssign application
to processor
Deliver to
processor
Enter street
address search
Call applicant for
clarification if
required
Review property
details to assure
same property
Schedule B
exceptions
Open mail and
date stamp
Deliver to TG
Certificate
Supervisor
2
hrs
2
hrs
½
hrs
Receive
application
Sort by name/
application
Evenly divide
applications
Deliver to
processor
½
hrs
½
hrs
Receive
application
(hard copy)
Prior commit or
old cert?
Discrepancies?
Customer receives
hard-copy of
commitment or
certificate
If required –
customer request
a change on
commitment (50%)
If required –
customer request
change in
certificate (1% -
2%)
Customer receives
faxed or emailed
commitment
Copy previous
application
Create new
property record
Process ends –
notify supervisor
Duplicate?
Add new
commitment
Add new certificate
Complete the
required screen –
name, coverage
types
Details screen
complete all data
(Schedule A)YES
NO
NO
NO
Review property
details to assure
not duplicated
Review paperwork
to determine
commitment or
certificate
Create new
property record
Complete the
required screen –
name, coverage
types, assign
jacket number
Put checks in
numerical order,
clip together, mark
with initials
Apply payment
(premium check)
(details screen)
Review the title
opinion
Print schedule A
and B
Deliver checks to
fire safe
Details screen
complete all data
(Schedule A)
Review the title
opinion
Is title opinion
adequate?
YES
NO
Request
clarification from
supervisor
Contact customer
for more
information
Consult with
underwriting
Provide
clarification
Consult with
underwriting
(2nd
processor)
Review copies of
schedules A and B
Owner policy? Save in “ready”
status
Automated edit
checks
Pass edit?
VAVAVA
VAVA
VAVA
VA
VAVA
YES
YES
YES
NO
Processor initials
the hard-copy
Receive
confirmation of
sent fax
“Issued” print the
commitment
Hard-copy for
commitment to
customer (40%)
Efax or email to
customer
(requestor)
Mail commitment
to party noted on
application
Hard copy to
reviewer for initials
– owner
commitments
Receive request
for correction /
change on
commitment
Create Form E
endorsement
File confirmation
with commitment
file (individual file
systems)
Receive request
for correction /
change on
certificateYES
YES
YES
Processor initials
the hard-copy
Mail hard-copy to
customer
NO
3
days
to 1
month
15
min
del
ay
Receive request
for further
information
15
min
YES
Mail or fax
hardcopy of Form
E
YES
Customer receives
copy of Form E
YES
YES
VA
Supervisor assigns
another
commitment to
processor
Discard duplicate
request
NO
YES
Receive request
for further
information
Title Guaranty Division
7
New Process Judy
IFA Title Guaranty Division
UN
DE
RW
RIT
IN
GU
ND
ER
WR
IT
IN
GC
US
TO
ME
RC
US
TO
ME
RM
AIL
C
LE
RK
MA
IL
C
LE
RK
PR
OC
ES
SO
RP
RO
CE
SS
OR
Receive
applications
Processor picks up
their share of new
applications
Open mail
Sort mail
-division issue
-attorney issue
By name
Log into CAP after
retrieving from
printer
Enter street
address - seach
Property in
system?
Review property
details to assure
same property
Review property
details to assure
not duplicated
Discard duplicate
request
Copy previous
application
Customer receives
faxed or email
commitment
Follow-up callSend application
Deliver to
processing
distribution area
45
min
Provide
clarification to
processor
Receive fax / email
via fax server
Print one copy of
application and
preliminary title
opinion
Discrepancies?
Call applicant for
clarification if
required
Create new
property record
Review paperwork
to determine
commitment or
certificate
Create new
property recordPrior
commitment or
cert?
Duplicate?
Add new
commitment
Add new certificate
Complete the
required screen –
name – overage
types – jacket
number
Details screen –
complete all data
(schedule A)
Complete the
required screen –
name – coverage
types
Details screen
complete all data
(schedule A)
Review the title
opinion
Review the title
opinion
Apply payment
(copy of premium
check) )(from
details screen)
Put checks in
numerical order
clip together and
initial
Apply payment
(copy of premium
check) )(from
details screen)
Is title opinion
adequate?
Schedule B
exceptions
Review draft of
Schedule A and B
on screen
Save in “Ready”
status
Request
clarification from
supervisor, co-
worker, or
underwriting
Deliver checks to
fire sate
FIRE SAFE
2.5
DAYS
TO 20
DAYS
delayAutomated edit
checks
Fax or email to
customer
requester
“issued” print the
commitment
Mail hard copy to
customer shown
on application
Pass edit?
File as to
individual’s file
system
Receive request
for correction /
change on
commitment
Receive request
for correction /
change on
certificate
Create Form E
endorsementMail or fax Form E
Customer receives
hard copy of
commitment
If required,
customer request
a change on
commitment (50%)
If required, request
change to
certificate (1% -
2%)
NO
YES
Receive Form E
YES
NO YES
NO
YES NO
YES
NO
YES
Provide
clarification
Title Guaranty Division
8
Results Judy
Old New % Change
# of Steps 88 64 27%
# of Handoffs 23 15 35%
# of Decisions 9 8 12%
Delays 7 2 71%
Value Added Steps 8 8 0%
Lead Time 3.4 – 30.4 days 2.3 – 20.1 days 34%
Title Guaranty Division
9
Key Learning Loyd
Discovering what I thought were underwriter
requirements really were not.
It helps to see the process on paper.
It helps to see the process from start to finish.
You can make changes faster when all players are in
the room.
Greater appreciation of the challenges faced by the
production staff.
Amazed at how many ideas came out of this event.
Impact / Difficulty matrix helped prioritize action items.
Title Guaranty Division
10
Completed or Implemented Steve
Eliminated requirement of processor signature.
Eliminated cross checking of owner certificates and
commitments.
Analyzed cost benefit of lock box for processing checks.
Email fax system for TGD so processors can pull work
(commitments).
Dedicated commitment processors to reduce task
switching.
Mail processing PO box added to reduce sorting.
Processors manage their own work flow.
Relieved supervisor of opening mail and assigning work.
Title Guaranty Division
11
Homework Joanna
WHAT STATUS WHO WHEN
Computer-generate 3 jacket pages and forms.
Write instructions. In Progress Judy 3/1/2007
Define resource loading and rotation schedule to
ensure continuous operations ( cert and
commitment)
Complete Judy Start on 12/20
Outsource final certificate
production (outline plan) Under discussion Linda B 12/21/2006
Eliminate double checking on owner's policy -
training - proofreading - checklist - change
procedure
Complete JoAnna Training ongoing
Analyze cost / benefit of implementing lockbox
process (get check deposit sooner) Complete
Steve
Linda M 1/31/2007
Reroute dedicated FAX # In Progress
Steve
Submit work order by 12/18
Promote - email, application,
update web, for PO Box In Progress Linda B 12/18/2006
Distribute / pull commitments by processors Loyd 12/21/2006
Dedicated PO Box - "Processing for certificates Steve Judy 1/31/2007
Create dashboard metrics and post on display in
work area In Progress Bret Judy 12/19/2006
Title Guaranty Division
12
Homework Joanna
WHAT STATUS WHO WHEN
Investigate incentives / appreciation for
performance (DOT, DOR) In Progress Linda M Staff meeting 12/19
emphasize using copy function for converting
commitment to certificate (sent email) Complete
Loyd Judy
Linda M
IT to propose a way to link commitment to
certification electronically In Progress Kerry 1/31/2007
Send memo - encourage less printing of drafts to
review, eliminate signatures Complete Loyd
Standardize "initial working of application"
process step and cross-train Complete Judy
Eliminate signatures by processors Complete Loyd
Establish a future state for a web-based, online,
fully paperless
Kerry Steve
Loyd TBD
Investigate a way to eliminate printing one copy
of application and PTO (2 monitors, software cut
& paste)
Ongoing Kerry 9/30/2007
Communicate to attorneys (or source of title opinions,
ie atty staff) standard title opinion docs and
recommend standard title opinion
Ongoing JoAnna 12/19/2006
Marital status - reminder to mortgage broker, attorney,
lender, abstractor
JoAnna
Linda B 12/19/2006
Title Guaranty Division
13
Parking Lot Linda B
Application follow-up calls can be made by the customer throughout the organization
Ensure processors have all they need to process applications
Receive payments electronically
New application form (with email address)
Review scanning process
Work in Process – “Hot team” or other to reduce WIP.
Title Guaranty Division
14
Team member experience!
Title Guaranty Division
15
We welcome your
questions and comments