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Free Kindle Book Deal - "Implementing An Effective Quality Management System"**Free Kindle Book Deal for "Implementing An Effective Quality Management System" is available from 28 January to 01 February 2025.A kindle book that makes an understanding of implementing an effective quality management system.Target readers: Quality professionals, QMS auditors, Top management leaders of organizations, persons involved in QMS implementation, Persons wish to know QMS implementationYou may get your copy of the Kindle Book free of cost during the abovementioned period. Please read and submit your review / rating at Amazon website. Regards,Keshav Ram Singhal  

Free Kindle Book Deal - "Future Banking is Lean Banking"*********Free Kindle Book Deal for "Future Banking is Lean Banking" will be available from 27 to 31 January 2025. You may get your copy from Amazon website. Please read and submit your review. Thanks,Keshav Ram Singhal 

Towards Improving Banking Services Quality 23. Lean Banking and Quality Management   Lean banking and quality management are both approaches that can improve banks' processes and ultimately their services, but they differ in their focus and methodology.   Lean banking focuses on eliminating waste and improving efficiency by reducing the time spent on non-value-added tasks. Lean management originated from the Toyota Production System, developed after World War II. Lean banking can lead to operational improvements and increased customer satisfaction.   Quality management focuses on continual improvement and customer satisfaction by instilling a quality consciousness throughout the organization. It involves a commitment from all levels of the organization to improve processes, products, services, and culture.   Lean banking relies on value-added activities, structured problem-solving, and eliminating non-value-added activities, while quality management adopts a standardized approach. Banks can find success by combining and implementing elements of both Lean banking and quality management.   The key difference between these two is that Lean methodologies focus on the value stream and process efficiency, while quality management focuses on consistency and compliance. Lean banking and quality management share common goals of customer satisfaction, continual improvement, and streamlining processes.   Lean banking implements Lean management principles, which are built upon two core pillars and five foundational principles. The two pillars of Lean management are continuous improvement and respect for people. The five foundational principles of Lean management are:   1.       Identifying value,   2.       Mapping the value stream,   3.       Creating flow,   4.       Pull, and   5.       Seeking perfection.   ISO 9001:2015 Quality Management System is built upon seven quality management principles:   1.       Customer focus,   2.       Leadership,   3.       Engagement of people,   4.       Process approach,   5.       Improvement,   6.       Evidence-based decision-making, and   7.       Relationship management.   The Plan-Do-Check-Act (PDCA) cycle is applied to all processes and the quality management system to achieve enhanced customer satisfaction.   This series of articles discuss in detail Lean management pillars, foundational principles, and Lean tools that can be applied to Lean banking. All these Lean tools can support the quality management objective of enhancing customer satisfaction. Risk-based thinking, as stipulated in the ISO 9001:2015 QMS standard, provides ways to address risks and opportunities to prevent or reduce undesired effects (non-value-added activities) and achieve improvement.   Lean banking and quality management both aim to enhance customer satisfaction, streamline processes, and foster continual improvement. While Lean banking focuses on efficiency through the elimination of waste and maximizing value-added activities, quality management ensures consistency, compliance, and a culture of excellence. For instance, a bank might use Lean tools like Value Stream Mapping to optimize loan processing workflows while adhering to ISO 9001:2015 principles to maintain compliance and improve customer trust. Together, these methodologies create a robust framework that supports both operational excellence and strategic growth.   Lean banking and quality management systems are both valuable for improving a bank's functioning. Both complement each other. Banks should consider adopting and implementing both Lean banking and ISO 9001:2015 QMS to stay competitive.  I welcome your comments, questions and suggestions.Warm regards,Keshav Ram Singhal 

Towards Improving Banking Services Quality22. Other Lean Tools for Lean Banking   Introduction   Lean tools are instrumental in driving operational excellence and efficiency across industries, including the banking sector. In an era of digital transformation, these tools also align with technological advancements, enabling banks to remain agile and innovative. By implementing these tools, banks can reduce waste, improve processes, and enhance customer satisfaction. The tools discussed in this chapter—Poka-Yoke, SMED, Kanban, TPM, JIT, Kaizen, Gemba, and Standard Work—serve as powerful enablers for creating a streamlined and customer-focused banking environment. Each of these tools, while rooted in manufacturing, finds valuable applications in the context of Lean Banking, fostering innovation and agility. For more information and detailed study, readers are encouraged to refer to relevant publications and sources.   Poka-Yoke   Poka-Yoke is a Japanese term that means ‘mistake-proofing’. It also means ‘inadvertent error prevention’. It is a mechanism in a process that helps an operator avoid mistakes and defects by preventing, correcting, or drawing attention to human errors as they occur.   Poka = Mistakes (Defects)   Yoke = Avoid (Remove)   The Poka-Yoke concept was formalized, and the term adopted, by Shigeo Shingo as part of the Toyota Production System. A good example of Poka-Yoke in banking industry is that when a customer using an ATM, the customer receives back his/her ATM card first, before the ATM machine issues the desired money. This sequence prevents the customer from walking away with money and forgetting his/her card.   Example: Automating account number validation during transactions in banking software prevents data entry errors, ensuring accurate processing.   Digital error-proofing mechanisms in online banking minimize manual mistakes by using automated checks, validations, and intelligent systems. Key features include:   1.       Input Validation: Ensures correct formats for account numbers and codes.   2.       Dropdown Menus and Auto-Fill: Reduces typos and repetitive entries.   3.       Confirmation Prompts: Displays transaction summaries for user review.   4.       Error Messages and Alerts: Guides users to correct mistakes in real-time.   5.       Dual Authentication: Adds security layers to prevent unauthorized actions.   6.       Tooltips and Assistance: Provides on-screen guidance for accurate inputs.   7.       AI and Automation: Predicts and flags anomalies based on user behaviour.   These mechanisms streamline operations, enhance security, and align with Lean principles by reducing waste and improving efficiency.   SMED   SMED = Single-Minute Exchange of Die   SMED is a lean tool used to reduce the time it takes to change from running one process in operation to running another. The essence of the SMED system is to convert as many changeover steps as possible to ‘external’ (performed while the equipment is running), and to simplify and streamline the remaining steps. The name SMED (Single-Minute Exchange of Die) comes from the goal of reducing changeover times to the ‘single’ digit (less than ten minutes). SMED’s utility is not limited to manufacturing industry, it can be used by service industry too.   Example: Simplifying the loan application approval process by converting verification steps into parallel activities (e.g., document scanning while background checks run). Simplifying the loan application approval process will reduce the time required for interdepartmental handovers in banks.   Kanban   Kanban is a workflow management method for defining, managing, and improving services that deliver work. Kanban aims to help visualize work, maximise efficiency, and improve continuously.   Kanban offers the flexibility to use the method on top of existing workflows, systems and processes without disrupting what is already in place. This method recognizes that existing processes, roles, responsibilities, and titles have value and are, generally, worth preserving. It highlights issues that need to be addressed and help assess and plan changes so their implementation is as non-disruptive as possible.   Example: Implementing a digital Kanban board for managing loan applications or customer service requests ensures real-time tracking and prioritization. Banks should include visual tools like dashboards in maintaining smooth workflows.     TPM   TPM = Total Productivity Maintenance   Total productivity maintenance (TPM) aims to minimize downtime. It is a systematic execution of maintenance by all employees through small group activities. The goals of TPM are zero breakdowns and zero defects. TPM is an approach to equipment maintenance that aims to achieve a perfect production or service process by increasing productivity, efficiency, and safety of equipment. This process involves participation of employees in setting workplace safety standards and maintaining a safe work environment.   TPM can be suitably applied in banking for maintenance of equipment (such as computer systems, Note-counting machines, ATMs, security alarms, printers, display systems, pass-book printing machines, fire extinguisher devices etc).   Example: Establishing regular maintenance schedules for ATMs and other banking equipment ensures uninterrupted service. Proactive equipment maintenance reduces downtime and enhances customer trust.   JIT   JIT = Just in Time   Due to globalization and continuously changing business environment, concept of 'Just in Time (JIT)' has emerged and is playing intensive role in business environment including banking. Just-in-time (JIT) financing is an approach adopted by banking industry.   Example: Just-in-Time cash replenishment in ATMs ensures availability while minimizing excess cash storage risks. Real-time monitoring systems will enable banks to implement JIT principles effectively.   Kaizen   Kaizen = Change for better   Kaizen is a Sino-Japanese word for ‘improvement’. It is a concept referring to business activities that continuously improve all functions and involve all employees from top level to junior level.   Kaizen sees improvement in productivity as a gradual and methodical process.   Example: Regular team (staff) meetings in a bank branch to brainstorm small process improvements, such as simplifying customer onboarding. When ground staff is involved in continual improvement exercise, it will have cumulative impact on customer experience and operational efficiency.   Gemba   Gemba is a Japanese term meaning the ‘actual place’. In Lean management, the idea of Gemba is that the problems are visible, and the best improvement ideas will come from going to the Gemba. The Gemba walk is an activity that makes management to the front lines to look for waste and opportunities to practice Gemba kaizen, or practical shop floor improvement. The Gemba walk is much like MBWA (Management By Walking Around). The objective of the Gemba Walk is to understand the value stream and problems rather than review results or make superficial view, comments or opinion. The Gemba Walk denotes the action to see the actual process, understand the work, ask questions, and learn. Taiichi Ohno, an executive at Toyota, led the development of the concept of the Gemba Walk. The Gemba Walk is an opportunity for employees to stand back from their day-to-day talks to walk the floor of their workplace to identify wasteful activities.   Example: Managers visiting customer-facing operations, such as bank tellers or call centers, to identify and resolve inefficiencies in real-time. Engaging frontline employees in problem-solving during Gemba walks will resolve many issues.   Standard Work   In Lean management, standardized work is a means of establishing precise procedure(s) to make product or service in the safest, easiest, and most effective way based on current technologies. Fifth principle of Lean management is to seek perfection, which is similar to Standardized work. Standardized work requires three elements: (1) Takt time – The rate at which parts, products, or services must be produced or delivered to meet customer demand, calculated as the available production time divided by the customer demand within that time frame. (2) Work Sequence – The step operators (the persons performing the processes) need to perform within Takt time, in the order in which the processes must be completed. (3) Standard inventory (or in-process stock) – Minimum quantity of parts and raw materials needed to run operations. For service sector, the safest and fastest work process. Standardization is the key to reducing errors and reducing risks.   Example: Standardizing the workflow for opening accounts to ensure consistent and efficient customer service across branches. Standardized work process reduces risks and enhance compliance with regulatory norms, such as banking regulations.   Conclusion   The Lean tools discussed in this chapter form the foundation of Lean Banking, enabling institutions to deliver superior value to customers while optimizing processes. By leveraging these tools, banks can not only minimize waste and errors but also foster a culture of continuous improvement. As banking evolves to meet the demands of a dynamic global economy, these tools will play an integral role in achieving operational excellence and sustaining competitive advantage. As the banking sector increasingly embraces technology, combining Lean tools with digital innovations will be vital in navigating future challenges and delivering unmatched customer experiences. Readers are encouraged to explore these tools further and adapt them creatively to address the unique challenges of the banking sector.I welcome your comments, questions and suggestions.Warm regards,Keshav Ram Singhal Next - Lean Banking and Quality Management

Towards Improving Banking Services Quality21. 5-S Practice and Lean Banking   Introduction   The 5-S Practice, a core component of Lean methodologies, plays a pivotal role in streamlining banking operations. Rooted in the principles of organization, cleanliness, and standardization, it fosters a Total Quality Environment. By applying 5-S in banking, institutions can significantly reduce inefficiencies, improve workplace productivity, and enhance customer experiences. Whether it’s optimizing document retrieval times, maintaining a clutter-free environment, or promoting discipline among employees, the 5-S framework aligns seamlessly with Lean Banking principles, ensuring a structured and efficient approach to modern banking challenges. 5-S Practice is a recognized practice of TQMEX model and also a Lean tool for improving productivity. Five pillars of 5-S stand for five Japanese words – Seiri, Seiton, Seiso, Seiketsu and Shitsuke.   These five pillars are useful in improving the physical environment of the work place, and also the thinking processes. 5-S movement takes its name from the five Japanese words that start with the letter S. Basically 5-S Practice is applied in manufacturing industry, however this practice is also useful to service sector including hospitals, banks etc.   THE FIRST STEP OF 5-S – ‘SEIRI’ – The English equivalent of the Japanese word ‘Seiri’ is ‘Structurize’. It means organization of the affairs and sorting of things in a better way. ‘Straighten up’ may be another name of ‘Seiri’. The typical examples of ‘Seiri’ are: throw away rubbish and worthless items, separate the things that are necessary for the job from those that are not. It means clearly distinguish needed items from unneeded items and eliminate the unneeded items.   ‘Seiri’ is the first pillar of visual workplace, corresponds to the ‘Just in Time’ (JIT) principle:   -          Not needed at all in the organization   -          Not needed here (at the workplace)   -          Needed, but not now   -          Needed, but not so much   ‘Seiri’ means remove all items from the workplace that are not needed for current production operations. It is about separating the things, which are necessary for the job from those that are not necessary for the job. Keep the number of necessary things for the job as low as possible and at a convenient location. To make this step and effective one, you should differentiate between the necessary things and unnecessary things and discard the unnecessary things in following areas:   -          Unnecessary work in process   -          Unnecessary tools   -          Unused machinery   -          Defective products   -          Papers and documents of no use   Actions required:   -          Segregate required, useable, re-workable and obsolete items.   -          Dispose of the unwarranted items   -          Clear off walk ways   Remember:   -          One picture is worth more than thousand words.   -          Do away with unnecessary items and processes   Banking-Related Examples for Seiri (Sort, Structurize)    Decluttering customer service desks by removing outdated forms and unused promotional materials ensures only the most relevant resources are available for employees. A bank branch segregates outdated promotional materials, irrelevant forms, and unused stationery, clearing up storage space. Identifying and archiving outdated customer records to ensure only active accounts remain accessible, enhancing system efficiency.   Impact: Reduces clutter, enabling staff to focus on current and relevant materials, which enhances efficiency. Figure 14 - TQMEX Model and 5-S Practice THE SECOND STEP OF 5-S – ‘SEITON’ – The English equivalent of the Japanese word ‘Seiton’ is ‘systematize’. It means neatness, set in order and orderliness (which means putting things in order). The typical example of ‘Seiton’ is: retrieval of a document within a shortest possible time (as early as possible say within 30 seconds). It means keeping needed items in the correct place to allow for easy and immediate retrieval. Set the things in order (arrange needed items) so that they are easy to use. Label the items so that anyone can find them easily and put them away.   Things must be kept in order so that they are ready for use when needed. Generally, it is observed that employees spent lot of time searching for documents, tools and records. Japanese companies are good examples for maintaining things in order. ‘Seiton’ is all about neatness and neatness is a study of efficiency that provides an answer to the question – ‘how quickly anyone can get the things needed and how quickly anyone can put them away’.   There are four ways of achieving ‘Seiton’:   -          Analyse the present situation   -          Decide where things belong   -          Decide how things should be removed or put away   -          Obey the put away rule   -          Putting things back where they belong   Actions required:   -          Use labels, colour codes for easy identification   -          Use index for file, records, drawings etc to facilitate retrievability   -          Plan storage with accessibility   Remember:   A place for everything and everything in its place   Banking-Related Example for Seiton (Systematize)   Introducing a digital document management system for faster retrieval of customer records, reducing retrieval time from minutes to seconds. The bank systematically organizes frequently used forms, such as loan applications and deposit slips, in labelled drawers or digital folders. Establishing QR code labels for documents and files, enabling employees to quickly locate and retrieve them using digital scanning tools.   Impact: Staff can retrieve any form or records within a few seconds, improving customer service speed and minimizing frustration during busy hours. Figure 15 - Pillars of 5-S   THE THIRD STEP OF 5-S – ‘SEISO’ – The English equivalent of the Japanese word ‘Seiso’ is ‘Sanitize’. It means shining, sweeping and cleaning. ‘Clean up’ the work place to keep everything in top condition. When someone needs to use something, it should be ready for the use. Typical example of ‘Seiso’ is: individual cleaning responsibility.   Keep the work place clean. Everyone in the organization from the managing director to the lowest cadre staff should undertake he job. ‘Seiso’ means to conduct a clean-up campaign.   Actions required:   -          Inspect and cleaned the supply lines, stockroom, scrap-yards and gardens   -          Clean-up workplace, machines, and tools after use   -          Identify root causes of loud noise, vibration, heat build-up in equipment and take remedial action   Remember:   -          Spice and span lead to zero break-downs.   Banking-Related Example for Seiso (Sanitize): Regularly cleaning ATM kiosks, branch counters, and employee workstations to ensure a hygienic environment for customers and staff. After each shift, the teller area is cleaned, and the workstations are sanitized, ensuring computers, counters, and cash counting machines are free from dust and grime. Implementing a checklist for cleaning high-touch areas like cash counters and PIN (Personal Identification Number) pads multiple times daily to reassure customers of safety.   Impact: A clean environment promotes better health for employees and leaves a good impression on customers.   THE FOURTH STEP OF 5-S – ‘SEIKETSU’ – The English equivalent of the Japanese word ‘Seiketsu’ is ‘Standardize’. It means standardization. ‘Seiketsu’ (standardize) differs from ‘Seiri’ (sort), ‘Seiton’ (set in order) and ‘Seiso’ (shine). The first three pillars can be thought of activities, as something people in the organization do. ‘Seiketsu’ (standardize) is the method to maintain the first three pillars of 5-S. It is the fourth pillar of the VISUAL WORKPLACE.   The emphasis is on visual management and standardization. ‘Seiketsu’ means to conduct ‘Seiri’ (sort), ‘Seiton’ (set in order) and ‘Seiso’ (shine) at frequent intervals (in fact daily) to maintain a workplace in perfect condition.   Actions required:   -          Develop standards   -          Establish checking procedure (5W + 1H) – What, Why, Where, Who, When and How.   -          Create visual controls   -          Devise ways and means to explore problems and their solutions   Remember:   -          Action speaks louder than words   Banking-Related Example for Seiketsu (Standardize) Implementing uniform guidelines for arranging files, documents, and tools across all bank branches ensures consistency and easy auditing. The bank establishes a weekly checklist for cleaning and organizing customer lounge areas, including arranging chairs, sanitizing ATMs, and replenishing brochures. Using uniform designs for signage and forms across all branches, ensuring customers easily recognize and understand them.   Impact: Maintains consistent service standards across all branches, leading to better customer experiences.   THE FIFTH STEP OF 5-S – ‘SHITSUKE’ – The English equivalent of the Japanese word ‘Shitsuke’ is ‘Self-discipline’. It means to make a habit of properly maintaining correct procedures. Discipline is a process of repetition and practice. Self-discipline goes beyond discipline and becomes a habit of doing things in disciplined manner every time. The emphasis of the fifth step of 5-S is creating a workforce with good habits. Everyone must follow the procedures at the workplace every time.   Actions required:   -          Develop action plan for maintaining the set standards   -          Give unambiguous advice / instructions to your work associates   -          Carry on 5-S activities as a matter of habit and enthuse others to practice 5-S   -          Conduct self-audit of 5-S practice in your organization   Remember:   -          Be a self-starter   Banking-Related Example for Shitsuke (Self-Discipline): Encouraging employees to habitually log out of systems after work to maintain data security, coupled with regular self-audits of their compliance with workplace protocols. All bank employees practice the habit of logging off systems at the end of the day and securely storing customer-sensitive documents in designated lockers. Conducting monthly employee workshops to reinforce the habit of promptly addressing workplace inefficiencies and maintaining the 5-S practice.   Impact: Encourages a culture of accountability and compliance with data security policies, reducing risks of information breaches.   Conclusion   The 5-S Practice is more than just a set of workplace principles; it is a transformative methodology that drives operational excellence in Lean Banking. By integrating 5-S into daily banking operations, institutions can achieve a structured, efficient, and customer-centric environment. From decluttering physical and digital spaces to fostering self-discipline among employees, the benefits of 5-S are manifold. Banks adopting these practices can expect enhanced productivity, streamlined processes, and a superior customer experience—hallmarks of success in the competitive world of modern banking.   A research study published on 31 August 2018 in the ‘IMPACT’: International Journal of Research in Humanities, Arts and Literature (IMPACT: IJRHAL) included the fact that ICICI Bank in India implemented 5-S. The bank claims to have saved around Rs. 75 million through the implementation of quality programmes. This could be contributed to the use of 5-S that made up to 50 per cent savings. And with other benefits the record time for tracing documents has reduced to 30 seconds.   In the rapidly evolving banking sector, where technology and customer expectations change dynamically, adopting methodologies like 5-S ensures banks remain agile, efficient, and customer-focused. By embedding these principles into their operational DNA, banks can pave the way for sustained growth and innovation. I welcome your comments, questions and suggestions. Warm regards,Keshav Ram Singhal Next - Other Lean Tools for Lean Banking