total quality management in banking sector
TRANSCRIPT
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Quality Management in Private Banking Sector
GROUP 9
Suyash Jain C016Apoorva Jajoo C017Shreya Khare C018Akshay Khatri C019Tejasv Kumar C020Aakarsha Lamba C021
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IntroductionTotal - made up of the wholeQuality - degree of excellence a product or service providesManagement - act, art or manner of planning, controlling, directing,….
Therefore, TQM is the art of managing the whole to achieve excellence.
Service quality is defined as the degree of discrepancy between customers’ normative expectations for service and their perceptions of service performance
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• Global world suffered from financial depression in recent years, it is essential for banks to establish a sturdy and solid loyal customer base to weather tougher economies and more intense competition.
• Indian banking sector continuously expanding still it has faces tough competition between public sector and private sector banks
• The public sector banks dominate the banking industry in terms of size of assets .
• The government has now recognized the need to make banking industry more competitive and made various policies to support them.
• Banks have expanded their operations and more foreign sector banks have entered the Indian banking industry
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Dimesions of Service Quality
RESPONSIVENES
RELIABILITY
ASSURANCEEMPATHY
TANGIBILITY
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Service Quality
Determinants
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Ease of Access Tangibles
Security Credibility
Communication
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Courtesy Understanding
Competence Reliability
Responsiveness
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Kano Model
Time
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Kano Model
• Availability of multifunction kiosks.
• Ease of Access• Reliability• Banks should remain open
on Sunday • Expert service available for
import/export business • Supportive behavior of
member of staff
• Space available for sitting/writing /waiting
• Reliability• Courtesy• Locker service rendered
by branch • Availability of ATM
facilities • Short Duration of time in
payment of cash /DD/FD • Issue of cheque book in
current a/c
• Layout & signboards• Sanctioning of loans• Responsiveness• Nominal Interest Rates • Security • Locker Facility
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Case Study
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History• First to receive an 'in principle' approval from the Reserve
Bank of India (RBI) to set up a bank in the private sector
• HDFC was incorporated in 1977 with the primary objective of meeting a social need that of promoting home ownership by providing long-term finance to households for their housing needs
• VISION STATEMENT-To build a world class Indian bank.
• MISSION STATEMENT:
Use enabling technologies to provide value added products and services to customers at value for money price.
• It has also received a CII-EXIM Bank Commendation Cert. for commitment to TQM- 2000.
• Various researches conducted for quality enhancement.
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Quality Policy• SECURITY: The bank provides long term financial security
to their policy. The bank does this by offering life insurance and pension products.
• TRUST: The bank appreciates the trust placed by their policy holders in the bank. Hence, it will aim to manage their investments very carefully and live up to this trust.
• INNOVATION: Recognizing the different needs of our customers, the bank offers a range of innovative products to meet these needs.
• INTEGRITY • CUSTOMER CENTRIC • PEOPLE CARE “ONE FOR ALL AND ALL FOR ONE” • TEAM WORK • JOY AND SIMPLICITY
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Quality objectiveDecrease number of customer complaints
Improve customer service scores in every branch time to time
Reduce customer wait time in line and ensuring adequate staffing during peak periods.
Reduce data-entry time per customer by consolidating multiple databases into one data management system by the end of this year.
Increasing the security in internet banking portals.
Reducing the transaction failure rate for online payments.
Improving the instant fund transfer app Chillr-HDFC Bank
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Quality process
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TQM implementationReducing the processing times of key products and services
Promptness in responding to customer inquiries
Accuracy and timeliness of statements of accounts and records
Customer Service Quality
Banking Service Product Quality
E-banking Improvement
Increasing Customer Satisfaction & Security
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Quality Tools
They are called basic because they are suitable for people with little formal training in statistics and because they can be used to solve the vast
majority of quality-related issues.
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Cause-and-Effect Diagram
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Account Opening Delays
Environment People Process
Measurements Machine
No back-up support system
Management issues
Absenteeism
No training program
Workload
Material
Maintenance issues
Network issues
Low employee engagement
Rules and Regulations
Infrastructure
Law and Order
Location
No proper tracking system
No proper return mail monitoring
Service Desk
Less printers
Outdated systems
No token System
Unavailability of stationary
Improper sealing of envelopes
Low quality paper
Delay caused in Opening a new account
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Scatter Diagram
5 10 15 20 25 30 350
2
4
6
8
10
12
Service Time (in minutes)
Customer Feedback
(scale from 1- 10)
Independent Variable : Service TimeDependent Variable : Customer Feedback
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PARETO CHARTS
General behavior of member of staff
Performance of internet banking &mobile banking
Availability of staff member for en-quiry & listening
of problem
Time taken in proceed of outsta-
tion cheques
Duration of time in payment of
cash /DD/FD
Time taken in sanctioning of
loan
0
2
4
6
8
10
12
14
16
18
20
0%
20%
40%
60%
80%
100%
120%
39%
63%
76%
87%96%
100%
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FMEA for HDFC Bank
Failure Mode Effect Analysis
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Why companies go for FMEA??• Get it right the first time• Identifies any inadequacies in
the development of the product
• Tests and trials may be limited to a few products
• Continuous improvement• Preventive approach
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Process Step
potential failure mode
potential failure effect
Severity
Potential causes
likeliness of failure
current process control
detectability of failure
RPNaction
recommended
Resposibility action taken new severity
new likelines
s of failure
new detectabi
litynew RPN
Withdrawal of cash
Cash not disbursed
dissatisfied
customer 7
Machine out of cash 7
internal alert of low
cash in machine 4 196
improve monitoring of cash threshold
levels across
machines manager
minimum cash
threshold limit of
heavily used machine is
increased to prevent out-
of -cash situation 7 4 3 84
Account debited but cash
not disbursed
very dissatisfie
d customer 8
transaction failure
or network/s
erver issue 3
load balancer
installed to distribute workload 4 96
enhance transactio
n processing
system manager
proper verification
of the trnsaction 8 3 2 48
extra cash disbursed
bank loses
money 8
bills stuck to each other 2
verification while
loading cash in
machine 3 48
change the quality
of paper manager
verification while loading
cash in machine 8 2 2 32
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QUALITY FUNCTION DEPLOYMENT
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CONCLUSION AND
RECOMMENDATIONS
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RECOMMENDATIONS
• Provide the bank employees first-hand best corporate practices
• Expose the bank employees to the environment in which the bank customers use the bank's services
• Constantly retrain the bank staff in the theory and practice of TQM
• Showcase the customer quality• Establish a continuous improvement culture
in the Bank Initiate vigorously continuous process improvement in the Bank. The process improvement can be brought about by;
• Breakthrough thinking; • Process stabilization; and• Incremental Imrovement
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Conclusion• A link between service quality and
satisfaction level can be established, i.e. customers’ satisfaction is influenced by the level of total service quality.
• However, it was also found that certain service quality dimensions fell short of customer’s expectation as their perceived service quality was less than their expectations.
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• There is a close relationship between the employee perceived quality in banks and the actual service quality perceived by bank clients.
• Customers are important aspect of bank and loyal consumers can add value to profitability of banks.
• TQM can improve performance of a
bank by lowering costs, increasing revenues, delighting customers, and empowering employees.
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Thanks!Any questions?