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Chaired IQPC Industry Conference on Lean / Six Sigma in Hong Kong. Presentation delivered on Global Process improvement and Effective Measurement
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Robert EpnerConference Chairman
Regional General Manager & Chief Operating OfficerING Asia/Pacific Ltd
Six Sigma / Lean IQPC Industry Conference
Hong Kong Process Improvement Through Effective
Measurement Practices
2
• 12th largest financial institution worldwide by market capitalisation
• 6th largest financial institution in Europe by market capitalisation
• 11th on Forbes Magazine’s “Global 2000” listing in 2006
• €73.5bn market capitalisation
• 120,000* + employees
• 50 million* + corporate and institutional clients in over 50 countries
ING - World-Wide Financial Services Group
As at 8/9/2006* Source: ING financial as of 2nd quarter 2006
3
ING has a Wide Presence in the Asian markets
China1.3bn
Malaysia23m
Philippines85m
Thailand64m
India1.1bn
Japan127mKorea
48m
Taiwan22m
Australia & NZ
24m
Hong Kong7m
Singapore3m
Second largestInsurance
business in Asia
Second largest Investment
Management business in Asia
ex Japan
4
Over the last 3 years Operations Culture has Transformed….
• TPE Created
• Ops Network created
• Standard KPIs
2nd Half 2003
ProcessAnalysis
May 2004
1st Customer Cup & Six
Sigma Training
July 2004
First wave of Six sigma Projects
( 7)
Oct 2004
KPI targets incl. in TPE-MTP
Second Wave Six Sigma Projects (11)
Jan 2005
NB UW Regional Process
Optimization
March 2005
2nd Customer Cup
July 2005
Six Sigma Champions Training
Claims Regional Process Optimisation
Jan 2006
Customer Service Model
Regional Optimization
Implementation NB/UW & Claims
Optimization processes 3rd Wave of Six
Sigma Projects (4)
4th Wave of Six Sigma Project
(19)By own trainers
Train the Trainer (TTT)
July 2006
STP for NB/UW
2nd TTT Workshop organized
3rd Customer
Cup
Black Belt Course
Stage 1Process
Management
Stage 2Six Sigma
Deployment
Stage 3Regional Process
Optimization
5
Planning
People
AnalyticalProblemSolving
ProcessManagement
Business System – The “4 Ps” Approach
6
New Business and UW Leaders: Jimmy Wong, Vivek Bengani, Steven ChikNew Business and UW Leaders: Jimmy Wong, Vivek Bengani, Steven Chik
Policy Owner Services Leaders: Emily Chen, Philip Koh, Stella Feng Policy Owner Services Leaders: Emily Chen, Philip Koh, Stella Feng
Claims Processing Leaders: Lynna NG, Ritu Thakur, Bing Mu WuClaims Processing Leaders: Lynna NG, Ritu Thakur, Bing Mu Wu
Contact Center Leaders: Tina Dougherty, Ryoichi Tachibana, Meesook Won Contact Center Leaders: Tina Dougherty, Ryoichi Tachibana, Meesook Won
Aust Dalian HK India Japan Korea Malay Shang Taiw Thai
1
2
3
4
Workstream Organization: Regional Process Owners
“Workstream Governance Charter” establishes roles and responsibilities
NZ
Malaysia Korea Hong Kong
Malaysia
Taiwan
Malaysia
Shanghai
Taiwan
KoreaAustralia Japan
India
7
AP Regional totals for 12 BUs – 2005 Figures
Work Stream Volumes Total for
the Year
Monthly Average
Total Policies Issued 1.2 ml 100,000
Total Inbound Calls 3.3 ml 275,000
Total POS Transactions 1.0 ml 60,000
Total Claims 2.6 ml 220,000
8
A. Cost Efficiency
1. Productivity
2. Unit cost per policy issue B. Responsiveness
1. Simple Application Cycle Time
2. Complex Application Cycle Time
Standardizing data collection - Quantitative and Qualitative
Standard KPIs designed for Asia Pacific Region for 4 workstreams• New Business/ Underwriting• Claims• Policy Owner Services• Call Center
A. Quality and Satisfaction
1. Customer Satisfaction SurveyAgent SurveyEnd Customer Survey
2. Internal Audit Rating
3. External Audit Rating
KPIs - New Business / Underwriting
Quantitative Qualitative
9
KPI Measurement and Tracking
• Monthly KPIs submitted to Regional Office by 12 Business Units.
• KPI reports analyzed by respective Workstream Leaders.
• Workstream Leaders present during Monthly Regional Operations Call
• Operations Dashboard compares Actual KPIs Vs Targets of each country.
• Improvement in KPIs tracked - basis for the annual “Customer Cup Awards” for Process Improvement and Six Sigma.
10
Managing and Measuring Six Sigma Projects
• Regional Six Sigma initiative started by RO in 2004.
• Over 70 projects rolled out in 4 “Six Sigma Waves.
• Building Internal Capabilities: “Train-the-Trainer” (TTT) Workshops Green (Orange) Belt Certification Black Belt Certification
• BU Projects monitored and coached at tollgates by Regional Office.
• Sharing Completed Projects in the ING Six Sigma Site.
11
Special Challenges for Regional Projects
3 Region-wide Projects to create Standardised processes
• As-is-profiling done by each BU
• Best Practices identified
• CTQs identified through VOC
• Optimised Processes designed
Implementation of the Region-Wide Standardization Projects:
• Refined KPIs to align with optimised processes
• Compliance Report designed to track gaps
• Local Quick Win Projects for filling gaps
• IT initiatives planned on Region-Wide basis
• STP for policy issuance rolled out as Phase I
12
Summary - Six Sigma Projects in Asia Pac
TOTAL > 67 BU Level
> 3 Region Wide Optimization
> 18 Quick Wins
11
10
7
6 6
5
67
5
2 2
0
2
4
6
8
10
12
Korea Malaysia Australia Taiwan HongKong
J apan India Dalian Shanghai Thailand KB Life
Greenfield Markets
BU Wise Six Sigma Projects
3 Region Wide Optimization
1. New Business/Underwriting
2. Claims
3. Customer Service
13
TPE: BU members Set Measure for Operational Excellence
Claims
A) Cost
B) Speed: Average TAT
C) Quality
New Business/Underwriting
Policy Owner Services
Contact Center
DriverDriverDriverDriver Objectives & MeasuresObjectives & MeasuresObjectives & MeasuresObjectives & MeasuresPresentPresentPresentPresent
……… ……… ……….. ………..
’’04E04E ’05F’05F ’06F’06F ’07F’07F
KPIs Based on Key Principles: “Make Them Practical” and “Get Started then Refine”
Speed: Average Turnaround Time (TAT)1. Non-investigation
2. Investigation
Cost: 1. Claims per Staff2. Unit Cost Per claim
Quality: 1. Customer Satisfaction Survey2. Corporate Audit Services Audit
3. Reinsures Peer Review
14
Quarterly Summary – Asia Pac Ops Dashboard
'+' = better than Plan 'O' = On plan ' -' = Worse than plan
Performance Measurement Hong kong Japan Korea Malaysia Taiwan Australia Dalian Palic India Thailand KB Life**
NB/UW
Cost Efficiency + + - - + - + - - - +Responsiveness - - - - + O O + + + -
Quality and Satisfaction + O O O + na + O O - +CLAIMS MANAGEMENT
Cost Efficiency + + - - - - - - O O +Responsiveness - O O + + na - O O O +Quality and Satisfaction O O na O O na O na na - +
CONTACT CENTRE
Cost Efficiency - + O O o - O O - - +
Responsiveness + O O + o + + O + O -
Quality and Satisfaction O + - - O O O + na - +POS
Cost Efficiency + + + - - + + + - + +Responsiveness - + + + + + O + na + +Quality and Satisfaction O na O + O na O - na - O
'+' = better than Plan 'O' = On plan ' -' = Worse than plan
End of 3Q 2005Insurance Asia Pacific Operations Dashboard
(Actual Vs. MTP)
Q3 2006
Performance Measurement
NB/UW
Cost Efficiency
Responsiveness
Quality and Satisfaction
POS
Cost Efficiency
Responsiveness
Quality and Satisfaction
CONTACT CENTRE
Cost Efficiency
Responsiveness
Quality and Satisfaction
CLAIMS MANAGEMENT
Cost Efficiency
Responsiveness
Quality and Satisfaction
Malaysia
--+
-o+
+++
+
o+
15
As-is- profiling – Sample of NB/UW for design stage
SAMPLE
16
Customer Segmentation for VOC – Measure stage of the Optimised Processes
25-27TOTAL
5E4 - Claim Rejected / Partially Paid / In-Dispute (after-closed)
5E3 - Claim Accepted(External) End Customer - Life
Claim
5E2 - Claim Rejected / Partially Paid / In-Dispute (after-closed)
5E1 - Claim Accepted(External) End
Customer - Medical Claim
1I5 - BU Finance Director / Manageror Chief Actuary
5I4 - Claim Assessor, Field Investigator, other Claims "service provider"
1-2I3 - Service Centre Manager (Korea, Taiwan, others?) or Claims Dept. Manager
1-2I2 - Branch Manager
3I1 - Agent w/3+ Years Experience
(Internal) ING sales & operations staff
(incl. 3d party agents)
Target #s per BU
SEGMENTATATION
25-27TOTAL
5E4 - Claim Rejected / Partially Paid / In-Dispute (after-closed)
5E3 - Claim Accepted(External) End Customer - Life
Claim
5E2 - Claim Rejected / Partially Paid / In-Dispute (after-closed)
5E1 - Claim Accepted(External) End
Customer - Medical Claim
1I5 - BU Finance Director / Manageror Chief Actuary
5I4 - Claim Assessor, Field Investigator, other Claims "service provider"
1-2I3 - Service Centre Manager (Korea, Taiwan, others?) or Claims Dept. Manager
1-2I2 - Branch Manager
3I1 - Agent w/3+ Years Experience
(Internal) ING sales & operations staff
(incl. 3d party agents)
Target #s per BU
SEGMENTATATION
Sample Segmentation
for VOC
Over 2000 internal and external customers Interviewed for the Optimization Processes )
17
The Optimized/Std Process : Sample of Claims Optimized
Process Flow
Step 1Customer decides to
make claimContacts ING
Step 2 Claims verification
Step 3aING presents claims form
Step 3bNotify customer of
invalid claim
Step 4Customer completes form and prepares other documents
Step 5Customer sends
documents to ING
Step 6ING receives and
scans documents, sceens for
missing/dumb requirements. Inputs
data.
Step 6ACall to customer to
verify missing/incorrect data
Step 7Create electronic
claims file and dispatch to assessor
Process Details & Rationale(note source
of best practice)
Customer/agent contacts ING through website, call centre (AUSTRALIA), email,
walk-in (KOREA, TAIWAN)
Customer/agent answers prescribed
questions (AUSTRALIA) via
channel of choice. ING validates inforce policy, customer
details, policy terms (TAIWAN, AUSTRALIA,
JAPAN)
ING sends correct claims form to customer via email or post. Form has supplementary docs check list. ING
notified the customer on how to check the claims status (SMS, website, call
centre number)
If policy is not in force or terms do not match
claim, ING notifies customer/agent and
sends letter (AUSTRALIA, JAPAN)
Claims administrator inputs data, scans
documents and screens documents for
incorrect or missing data.
Claims administrator calls customer to verify
incorrect or missing data.
Retreival of NB documents. Batch all into electronic claims
file. Dispatch to assessor.
Who / Where
Customer's channel/place of
choice. If email refer customer to call centre
or website
On-line, via call centre, or walk-in.
IT system triggered to generate/print pre-filled claim form.
Call centre or website or meeting with agent
Claims administrator Claims administrator Claims administration
Normal Cycle Timeemail = immediate
post = 3-5 days with printing batch over night
Immediate after claims pre-screening
< 1 day of receiving documents
immediately 1 day
Other Best / Fresh Practices(note source)
1. Customer completes entire claim via internet. Allows for bookmark option to return to claim form at a later date. Also customer can print out form letter and
checklist for supplementary docs.2. Web/call centre questionnaire results
in pre-filled claims form.
If medical or when product risk allows
ING provides option to customer to reinstate inforce policy through
extra payment
Exceptions / Limitations
Technology Implications
Claims Sub-Process 1 Claims Submission and Pre-Assessment
Customer completes the rest of the pre-filled form. Customer prepares supplementary
documents from checklist. Customer sends all forms/documents to ING. ING advises fastest way to return documents (fax, email, advisor, walk-in, post) and gives service commitment depending on channel. Customer indicated preferred methos of payment: EFT, check to
customer or agent
within 1 week of customer receiving forms if by post
Outputs:customer/policy verification OR
claims invalidationclaims file
From customer contact ING to claim pre-registration < 10 min
Customer's home
Total Cycle Time = tbd< 14 days if by post
< 7 days if by email and return by post
< 5 days web claim addtnl docs
< 1 days if web claim no other docs
< 30 minutes if walk-in with all supplementary
documents
Web customer interface. Call centre CRM and questionnaire interface. Business rules engine for questionnaire. System integration and workflow.
Inputs:customer data
claims datasuplementary documents
NB/policy documents
Customer cashless claims card (MALAYSIA, THAILAND) generates claims processing
without customer effort.Give customer contact details of claims
administrator for future queries (AUSTRALIA)
Workflow, systems integration, imaging system
21
3a
3b
4 5 76 6a21
3a
3b
4 5 76 6a
SAMPLE
18
Measuring Compliance of Optimised process – Quarterly Compliance Report submitted by Bus & summarised at RO
SAMPLE
The BUs’ self-assessments compiled quarterly compliance report
Summary of Compliance
SAMPLE
ING process improvementProcess New Business/Underwriting
Compliance with the optimized NB/UW process 2006 Q3
AU DL HK IN J P K B K R MY NZ SH TH TW
Sub-process and X measuresUnderwriting
4·1 We queue and route applications to balance workload with underwriter capacity 2 2 2 2 2 0 2 2 2 0 2 2
4·2 We route applications to minimize handoffs and referrals upwards 2 0 2 2 2 0 2 2 0 0 2 2
4·3 Underwriters can make counter-offers within pre-set limits, without referring the case upwards 2 2 2 2 2 0 2 2 2 0 2 2
4·4 We always underwrite to maximum sum assurable for later up-sell 0 0 0 2 0 0 0 0 0 0 0 0
Policy Issuance
5·1 We process payment only after we take the decision to issue the policy 2 0 0 0 0 0 0 0 0 0 0 0
5·2 The payment amount received is checked for correctness automatically 0 2 2 0 2 2 2 2 0 2 0 2
5·3 When payment is verified the policy packet is queued automatically for printing 2 2 0 2 0 2 2 0 0 2 2 2
19
Managing BUs Project implementation – Monthly tracking of Projects
Owner Start Finish Start Finish Status
Malaysia
Quick hits
Capturing Dumb requirements Jimmy Q4 2005 Q4 2005 09 2005 12 2005 Finished
Agent explanation of the UW process to the customer Uma TBA
Balancing application workload with UW capacity Tina TBA
Underwriting for the maximum sum assurable Jimmy Q3 2006 04 2006 - - In progress
Welcome call and anti-lapse call for all new customers Kimmy TBA
Six-month upgrade for all new policies Jimmy 04 2006 01 2007
Customer and agent satisfaction Philip TBA
Improve scanning in Docuflow Jimmy Q4 2005 Q4 2005 09 2005 01 2006 Completed
Local investment projects
Online data input for branches (interim solution) Jimmy Q4 2005 Q1 2006 12 2005 04 2006 Completed
SMART to display medical requirements at e-submission Uma Q4 2005 Q1 2006 Q3 2006 Q4 2006 In progress
Automate simple non-medical deferments, Phases 1 to 3 Uma Q3 2005 Q1 2006 07 2005 11 2005Completed
Phase1 only
Integrate scanning, verification and packaging in a single step Jimmy Q4 2005 Q2 2006 12 2005 06 2006 Completed
Improve requirements management in workflow system Robert Q4 2005 Q2 2006 Q1 2007 Q2 2007 Not started
Enhance routing capability in workflow Tony Q4 2005 Q1 2006 Q3 2006 Q4 2006 Not started
Improve confirmation of non-issuance in workflow system Jimmy Q4 2005 Q2 2006 Q2 2007 Q3 2007 Not started
Plan Actual
20
Sample of Quick Wins - Claims Projects
Workstream Project Goals Project Leader
Claims Design of Case-specific Claim Form Ted (Australia)
Claims Avoidable -Requirements Screening Ted (Australia)
Claims Pre-Screen Call Ted (Australia)
ClaimsCase-Routing to Assessors / Specialists & Field Investigators
Young Eun (Korea)
ClaimsClaim Assessor Case / Precedence Library and Best Practices Ritu (India)
ClaimsDispute Case Handling (incl. definition, metrics)
Raymond (HK Life)
Claims Escalation Logic Boonticha (Thailand)
Claims Accept / Decline CorrespondenceJimmy (Malaysia)
ClaimsDecline Communication Call & Info Capture Emily (Dalian)
Claims Fraud Detection / Prevention Ritu (India)
21
Linkage bw Six Sigma Projects, Optimised Process , Six Sigma Qualification Program and KPIs
Orange Belts
Black BeltsProject Selection Optimised Process Gap Analysis
Projects identified to fill gaps bw Current and
Optimised Process
Project Completed to achieve Project Goals and Improve
Processes
Project completion leads to Target
KPIs & Optimised Process
Planning
People
Analytical Problem Solving
ProcessManagement
Successful Project Replicated across
BUs via Workstream leaders &
updated on Intranet TPEX site – for
benefit of all BU s
Professional Development
Project Team Qualifies Orange Belt on
Completion of Project
22
To Summarise we have a boxful of tools which are “field tested”
REPORTS
NEW KPIS
DASHBOARD
COMPLIANCE SUMMARY
PROJECT IMPLEMENTATAION
VOC INTERVIEW QUESTIONNERE
VOC SEGMENTATION
VOC FINDINGS
THE SIX SIGMA DEPLOYMENT MODEL
STD/OPT PROCESS
IT PROJECTS
QUICK WINS
AS-IS-PROFILING TEMPLATE
BEST PRACTICES LISTING
CTQs LISTING
CORE TEAM
WORKSTREAM LEADERS
WORKSTREAM MEMBERS
TRAINED RESOURCES
23
THANK YOU!!