FTPS: Conversion Lead-Time Reduction

Project Description:

Problem Statement: Last fiscal year, the FTPS Conversion Lead-Time was 23 weeks to board a National Merchant or Financial Institution. This delay in the conversion process results in merchant dissatisfaction and delayed revenue.

Goal Statement: The Goal is to reduce the National Merchant Conversion Lead-Time to 12 weeks. Define critical paths for each conversion type and drive out variation that cause missed conversion dates.

Start Date: May   End Date: November

Project Metrics

Sigma: Baseline: -.59 Current: .22

DPMO: Baseline: 721,519 Current: 411,392

Cycle Time:

• Baseline: 23 weeks (20 week variation)
• Current: 12 weeks (8 week variation)

Project Benefits

Net Savings: $2.3MM

• Direct Savings:
  • Income from Lost Merchant Sales $1.3MM
  • Lost Income(Kinko’s 2 yr conv.) $1MM
• Soft Savings:
  • Cost Avoidance-Improved Conv. Capacity
  • Improved Customer Satisfaction
  • Additional Revenue Competitive Advantage

Project Accomplishments

• Statistically significant decrease in cycle time from 23 weeks to 12 weeks with improvements implemented.

• New procedures and system in place to track conversion data more accurately.

• Deal Negotiations and Contract changes implemented to create incentives for Merchant Customers.