Verification of Deposit Cycle Time

Project Description:

Problem Statement: Activity Based Costing study was conducted 4th Q 2002-1st Q 2003. The average processing time for a Verification of Deposit was 7:45 minutes. This represents a gap of 3:42 minutes from the 4:03 minute target. Current processes and pricing strategy used are subjective resulting in a Cost of Poor quality of $582,895.00

Goal Statement: Reduce cycle time by 3:45 minutes and current service level by one day (4 days to 3 days) by Q4

Start Date: September   End Date: July

Project Metrics

• Process Maps
• Pareto Charts
• Cause & Effect Diagrams
• FMEA
• Hypothesis Testing
• Decision System Analysis
• DOE

Project Benefits

Net Benefits:

• Increase of 66.77 percent in “Overall” performance. With the implementation of the identified improvements, 70.53% of items will be processed within our target of 4:03 minutes resulting in $23,000 in cost savings and additional revenues of $360,000.

Project Accomplishments

• Use of an electronic mailbox together with an MS Access database for forms/image processing

• The installation of a fax printer, A new method of processing the verification audit controls to eliminate rework.

• Establish a three-day as opposed to four-day Service Level Agreement