無論是生產還是服務，無論是組織還是服務，運作效率和服務質量都是最重要的因素。無論是以企業為導向還是以非營利為導向的組織，無論是組織發展還是業務的局部和區域擴張，都是企業運作中最重要的部分。主要操作效率和性能取決于外部環境的驅動力。這些外部驅動力正在創造行業間的競爭和激烈競爭。因此，未來的戰略規劃、應急計劃、運營戰略對迎接即將發生的變化至關重要，發揮著至關重要的作用。如果組織不能夠管理這些變化發生在組織和外部組織直接影響組織的運作效率。面對環境變化，最謹慎的戰略是調整組織運作方式和戰略。這樣做有助于按計劃實現組織的目標。主要是制造和服務組織履行職能，例如；

 

1. Executive summary 執行摘要

Operational efficiency and its quality of providing service is most important factor whatever organization either production or service. That is most important part in any company operations whether it is business oriented or nonprofit oriented organizations also are highly concern & their organizational growth and local and regional expansion of their operations. Mainly operational efficiency and performance is depending on the external environment drivers. Those external drivers are creating competition and intense of the among the industry player. Therefore future strategic planning, contingency plan, operation strategy is most important and playing vital role to face forthcoming changes. If the organization is not be able to manage those changes that happening in the originations and outside organization directly affect on operational efficiency of the organization. To face those environment changes most prudent strategies make adjustment in organization operating style and strategies. That does will help to achieve organizations corporate objectives as planned. Mainly manufacturing & service organizations are performing functions such as;

 

Sales & Marketing

 

Human resource

 

Operation

 

Accounting & Finance or treasury

 

IT/Information department

 

Logistic/branch management

 

Channel management

 

Internal auditing

 

Risk management

 

So called functions linking each other and having inter - dependencies, no one can override those operational activities. Everybody work in the must focus on very well on operational activities. Because, at the end of year shareholders (investors) are raising questions at AGM, how much of amount of return generate by businesses and whether business operations went smoothly, what will be the future plans to deliver high rate of return for our investment and what type of operational strategy going to carryout to face the completion. So on frequently raise the questions by shareholders. "Production and operation management" was begun with industrialization. But it play vital role in the service sectors. In the contemporary world named it as "Operation Management". Contribution of this subject is making bigger differences for business functions. Multinational & local companies have established independent department to manage their operational activities very well. For an instance nowadays emerging business is banking & financial service company name called "Nation Trust Bank". That bank routine operations are making huge impact on their business performance. That is because; bank performance is driven by its operational capacity & style. Mainly employees and customer's satisfaction are most important element to show outstanding performance and to attract the new customers. In this industry is driven by managing effectively whole operations of the business. Lack of operation management delivers poor performance. To provide remarkable service wider range of service related need to have well defined operations strategy to uplift business. This assignment report mainly focused on current practice of operation management banking industry and assignment contain the followings.#p#分頁標題#e#

 

Define operation management, its characteristic and playing role in banking & financial service industry.

 

Evaluate the goals and objectives are achieved in operation management objectives.

 

Define systems in operations in relation to service and routine activities.

 

Major resource, tools and systems that are supporting operations and to support quality of service of the bank.

 

Analyzing importance of quality audit and implementation of quality management system in bank.

 

Major weakness and explore opportunities to improve the bank service to satisfy the stake holders of the business. Making recommendation to capitalize the opportunities and avoid weakness of the bank.

 

Conclusion of assignment

 

2. Define term of operations management 定義essay管理術語

According to literature production & operation management are considering as one subject but in the current situation totally expert says about it as

 

"Operation management is subject that Design, execution and control firms operations that converts it resources into desired goods and services, and implement its business strategy" and its define as another way

 

"The maintenance, control and improvement of organizational activities that are required to produce good or service".

 

"Operations Management deals with design and management of products, process, services and supply chains. It considers the acquisition, development, and utilization of resources that firms need to deliver the goods and services their client wants.

 

First definition can be related the following diagram is simple operation of any organization.

 

Feed Back

Input

inputs Service

 

Process

servicing process

 

Out put

Maximize customer satisfaction

 

Employees

 

Money (local & foreign)

 

Savings accounts

 

Information

 

Systems

 

Open up Bank A/C

 

Cashiering

 

Credit card promotion

 

Mortgaging

 

Generate bank statements

 

Buying & selling of foreign currencies

 

Happiest or loyal customer

 

The above diagram we can see operations different operations in the input level, process level and output level. Therefore we can conclude that#p#分頁標題#e#

 

2.1. Operation management from aspect of Nation Trust Bank

To get analyze importance of operations of the bank the vision mission and values is helping out it

 

Vision - Making life simple by being the benchmark of convenience

 

Mission - Be innovative in continuously developing customer centric solutions. Unleash the talent of our team to be the best in the industry. Consistently grow market share and be the most profitable and respected Sri Lankan bank by 2015.

 

Values

Inspirational leadership

 

Integrity in all our dealings

 

Open communication

 

Learning focused

 

Meritocracy

 

Prudent risk management

 

Respect for all

 

Innovation and continuous improvement

 

Nurture relationships

 

Socially and environmentally responsible

 

Vision, mission and value are Nation Trust Bank (NTB) operational objectives in relation to corporate objective. Organization chart shows hierarchy of the departments

 

Chairman

 

Deputy Chairman

 

Board of Directors

 

CEO

 

Corporate management

 

Senior management

 

Branch management

 

Managers

 

Operation management

 

Corporate management overlooking the follwing functions

Director/CEO

 

DGM - Retail Banking

 

DGM - SME Banking

 

DGM - Cards, Consumer Assets and Strategic Marketing

 

DGM - Corporate and Institutional Banking

 

Chief Operating Officer

 

Head of Legal and Company Secretary

 

Chief Financial Officer

 

Head of Human Resources

 

Head of Credit and Market Risk Management

 

Head of Internal Audit

 

Consultant/Head of Treasury

 

Consultant/Head of Operational Risk and Compliance

 

Senior management overlooking functions are;

Trade Services

 

Branches and PBC

 

Alternate Channels

 

SME Banking and Factoring

 

Cards and Consumer Assets

 

Branch Operations and Credit

 

Wholesale Banking

 

Consumer Credit Risk and Collections

 

Consumer Sales

 

Treasury Services

 

Leasing

 

Corporate Banking

 

Leasing Operations

 

Management Information and Planning

 

Cards Marketing

 

Collections

 

Central Operations

 

Fixed Income Securities

 

Leasing - Zone 2

 

Leasing Recoveries

 

Marketing Services

 

Retail Banking Credit

 

Delivery Channels

 

Nations Insurance Brokers

 

Technology

 

Legal

 

Credit Operations

 

Credit Risk

 

Corporate Banking

 

Delivery Channels

 

Leasing - Zone 1

 

Internal Audit

 

Infrastructure and Administration

 

Business Banking

 

Compliance and Financial Reporting

 

Business Solutions

 

Delivery Channels

 

Credit Risk - Leasing and Factoring

 

By looking at the above orgnization chart and that functions, can get clear idea about the how its importace of the operaton mangement in the NTB operations. Here in the chief oprating officer and head operational risk is paly vital role of for the baking operations. They are responsible for the bank oprations as whole. Operational scope No of branches - 40, No of leasing centers - 9, No of ATM - 43 , 6 personal banking centers as well as Internet Banking

 

2.2. SWOT analysis of NTB

Strenght

It is subsidiary of Jhon Keels group, idirectly they can gained group strenght.

 

Reputed coporate brand name Coporate brand value is very high

 

Has selected well & profitable segment to provide the banking service

 

Wider product portfolio

 

Strong IT net work

 

staff in every layer having experice#p#分頁標題#e#

 

More than 20yers experaince in that perticualr field.

 

Carryingout more promotion

 

Respect corporate governance

 

Good Internal auditing & risk management

 

Weakness

Faliures in th the IT system

 

define some operations wrong manner

 

Poor promotion - Newly introdce gurnateed invetment paln will be fail because of it is irrational plan.

 

More customer complins prices and products quality

 

Few brach and ATM

 

Suboptoimization is happening & Employee discrimination

 

Poor advertising in relation to market leader.

 

Employee selections very static do not willing to new comers and do recruitment based on the personal contact.

 

Poor strategic implication.

 

Try to do mass scale promotion, it has failed

 

Always try todepend group strenght

 

Poor opertations of mini brach in the supermrkets

 

Opportunities

expansion opportunity in further in sri lanka in norht & south ( war affected areas)

 

Can be offered more differntiated Service by giving well traning for the staff.

 

Customer driven promotion.

 

Customer feed back system over the phone or by SMS,by mail.

 

Rewarding system for employees

 

Threat

High competition in the banking industry.

 

Overriding tax ruels and regulation by bank.may have legal risk for business.

 

New management is do not more concern on the operations

 

Paying high premius to get new business without cinsidering future feasibility.

 

2.3. Importance of operations management NTB

To satisfy the share holders objectives

Investor's are expecting return by investing money on the banking business. If the bank is not generated sufficient of amount of return on the shareholder's will not invest in the bank. Therefore its corporate objectives must design and link with operations.

 

To defense the market share & face the competition

Another main importance area of the operation management is developing strategy to face the competition.

 

To managing the risk of the business

Mainly banks facing the following risk;#p#分頁標題#e#

 

Credit risk

 

Market risk

 

Asset & Liability management risk.

 

Operational Risk

 

When look at all the risk are related with the operation with banking business, if bank the bank stopped their business operations there is no any risk to manage for them. Therefore, managing risk of the banking business should have smooth plan to manage the operations.

 

To fulfill rules and regulation of governed by Central bank of the country

To fulfill rules and regulation of governed company act and banking acts

Supporting decision making

Operational information's are giving support to make the decision making. As example to advertising effectiveness evaluate branded saving accounts can be used no of accounts opened up by customers on daily.

 

To adapt new changes on technological information

Technological environment is rapidly changing to adopt those changes ATM came into apply to increase banking operational efficiencies.

 

2.4. Performance analysis of the operations in relation to organization goals and objective

External process changes (customer satisfaction)

Personal banking service providing branches

 

New investment plan offered by bank

 

24 hours banking facility

 

Open mini branch in supermarket location.

 

Online bank account opening systems

 

SMS banking system

 

Door step banking system

 

Billing payment system via their mobile phone

 

Internal process changes (to happy internal customers)

new auditing system to analyze the business risk

 

Make contract with the international HR consultancy firm for training & development of staff.

 

Policies have been changes when issuing loans

 

Transferring staff between branches to reduce

 

Giving good training for newly recruited employees regarding bank operations.

 

To reduce bottlenecks IT system training was provided.

 

To prevent hacking introduced new system PIN by IT

 

3. Routine banking operation and related resources, tool and systems in support to improve operation quality.

As banks it having so many business process, that can be divided into two

 

External business process - Customer focused process

 #p#分頁標題#e#

Under this process defined that banking service which they provide to the customers. Those service are divided into 3 categories

 

Corporate banking

Personal banking

Treasury

Issue Letter of credit

 

Current , saving and fixed deposit

 

Foreign exchange dealings

 

Shipping & other guarantees

 

Credit card

 

Forward exchange booking

 

Import & export finance

 

Debit cards

 

Commercial paper

 

SWIFT facility

 

Branded Savings accounts

 

Foreign currency swaps

 

Syndicate loans

 

Certificate of deposit

 

Interest rate swaps

 

Project financing

 

Advice on foreign current market movement

 

Securitization

 

Salary remittance package

 

Structuring , managing and underwriting of initial public offering and private placement of equity

 

Housing loans

 

Company valuation & restructuring

 

E exchange - money transfer facility

 

Structuring of Corporate debt instruments

 

Holiday banking systems

 

Working capital financing

 

Red carpet banking system

 

Bullion trading

 

Off shore banking facility

 

Leasing

 

Internal business process - Internal operation centric process

Where mainly internal functions related process can be analyzed

 

Marketing Management - Ex. process of introduce of new product

This the huge process from the idea generating and to launch to customers is having certain approval to procedure such as;

 

Idea generating new service based products

 

Evaluating feasibility with the market condition

 

Getting approval from the Head of the marketing

 

Head of the marketing and Director of the Marketing, brand manger discussing pros and cons of the product, brand name selection, effect of existing products and competitor response

 

Finalized the approval#p#分頁標題#e#

 

brand name Registering

 

to launch the product preparing budget and get approval for that

 

brochures designing and making agreement with the ad agency

 

Printing pass books

 

Communicating to customers regarding the product via ad

 

Get feed back from the customer

 

Compare budgeted deposit or account to measure whether branches have achieved budgeted sales.

 

Human resources management - Opening new Branch fill the staff requirement

Forecasting staff requirement

 

Advertise regarding the vacancy

 

application sorting and short listed candidates

 

Call for the interview

 

1st interview for them and short listed for second interview

 

Call for the second interview

 

Select the right candidate for the job

 

Giving the appointment letter

 

Familiarizing for the organization via inductions

 

Training for that candidate

 

Permanent those staff

 

Internal auditing system

Here try to ensure that bank staff follow the procedure as planned and prescribed the accounts and finance. Here they evaluate

 

Analyze & search Fraud and errors

 

Management auditing

 

System auditing (IT)

 

Accuracy of accounting entries

 

Analyze & search Ineffective accounting procedures

 

Assets auditing

 

Deposit management

Under this category try to manage the deposit level with liquidity and profit. By balancing rules and regulations which are governed by central bank.

 

Channel Development System

This is described regarding new branch operation and development of customer service.

 

Managing Assets & Liability

This also very important business process and functions in the banking operations managing their assets and liabilities. If these two are not balancing each other, the bank balance sheet will show impact on assets and liabilities. It should be managed by well qualified management account or fiancé disciplined person. Otherwise bigger impacts made on the corporate image as well as destroy the customer's relationship and may have position go out of the business. Ultimately it will makes huge impact banking system in the economy.#p#分頁標題#e#

 

Risk Management System

major different risk component those are making bigger impact on the business continuation. According to bank information major risk rating as follows;

 

Risk Areas

Component of the risk

Credit risk

 

Default risk

 

Security risk

 

Sectoral exposure risk

 

Legal risk

 

Counterparty risk

 

Cross border risk

 

Sovereign risk

 

Market risk

 

and

 

Asset & Liability management risk.

 

Interest rate risk

 

Liquidity risk

 

Exchange rate risk

 

Investment risk

 

Group financial risk

 

Share price decline risk

 

Country risk

 

Operational Risk

 

Employee behavioral risk such as omission, fraud, judgmental errors, negligence, etc.

 

Disaster related risk

 

Trained staff turnover risk

 

Insider dealing risk

 

Sensitive information leakage risk

 

Lack of creativity and innovativeness

 

Risk on MIS and IT related risks

 

Planning & Budget related risks

 

Shortcoming in the organizational structure

 

Credit rating falling risk

 

Money laundering

 

Risk of technological obsolesces

 

Risk failing business volume and market share

 

Risk is being overtaken and losing the leadership position

 

Overtrading risk and risk of financial disintermediation

 

When look at overall risk, high risk show by operational risk compare to other risk areas. Therefore, to analyze any type of these risks, need to have solid information to mitigate those risks in business operation.

 

Operation management

Operations managements are looking after following areas. Those are;

 

Bank or branch opening procedure

This is very important part in opening branches and head office. Opening must be done without authorized people. If not that is considered as misused of operational rule on the other hand it taken as illegal act. Therefore those rules & regulation must very well.#p#分頁標題#e#

 

Cash handling process by cashiers

Main cashier hand over cash to the counter cashier

 

Get it signed on the log book

 

Cashier log on the computer

 

Carryout the day today operation (saving, withdrawals)

 

Handover cash to main cashier after counting

 

Fill the cash summary by using slip

 

Main cashier reconcile the cash with slip

 

Cash put into the safe box

 

Managing bank electronic data

Data management is major important part of business process. Bank decisions are making process based on this process. If there is an error in the data, outcome (information) is will be inaccurate, ultimately, made decision are delivering risk picture. Following the appropriate tool for quality assurance of the data applied by the banks;

 

Describing data that is in the warehouse

 

Specifying what In and out of data is warehouse

 

business events scheduling extract based

 

Documenting and monitoring data synchronization requirements

 

Measuring validity & quality of data

 

Data process management and security management system for data

 

building Capacity of the bank

To improve productivity of service that providing process by bank need improve existing capacity in terms of ATMs, Branch and staff.

 

Loan Management system

The following process is involved in under the loan management;

 

Analyzing suspension of the loan and advance

 

Then made reservation or taking legal action to receiver those loans

 

Managing the Finance of the bank

Financial management process overlooking low cost funding sources and mainly following procedure also looking after by fiancée manager

 

Working capital management

 

Corporate tax planning

 

Analyzing Investments

 

Debentures and Share issue

 

Corporate planning & Budgeting

Bank corporate planning and budgeting strategies are followed by operations, main step that is following certain steps in the corporate, business and operations levels.

 

Analyze the Vision, Mission, Goals and objectives of the bank

 

Carryout position audit (SWOT) and environment analysis (PESTEEL)

 

Generate strategic options

 

Analyze strategic options are generated

 

And Develop functional strategies such as finance, marketing, HR, operation, and IT to achieve corporate objectives. Such as

 

Profitability (Profit before tax)

 

return on capital employed of the bank

 

Growth and Market share of the bank

 

Customer satisfaction and value addition for service Quality of service

 

3.1. Analyzing and evaluating resources, tools and system to support in the quality operation

Bank or any other business resources, tools and system can be divided into 3 categories based on value platform. Those are;

 

Customer capital

Structured (organizational) capital

Human capital (Human Resources

Customer loyalty

 

Corporate brand name and it reputation

 

Business collaboration

 

Intellectual property

Patents & copy rights

 

Design right

 

Service mark

 

Trade mark

 

Infrastructure assets

Management philosophy ,Corporate culture, Management process ,Information systems, Net working systems ,Financial relationship

 

Know how (serving offering process)

Education level of employee, Vocational qualification, Work related knowledge, Proactive and reactive abilities, Changeability, Occupational assessment

 

3.2 Define and implement quality management for bank

Quality management defined by American Society for Quality "Quality is the totality of features and characteristic of product or service that bear on its ability satisfy stated or implied needs". Banks can focus on their quality the following way. Quality of services or business can be measure by using the following methods;

 

Six dimensional performance matrix

 

Balance Score card systems

 

Generic measurement

 

3.2.1. Six aspect or dimensional performance matrix

Dimension of the performance

Type of measures

Competitiveness

 

Relative market share

 

Measure of customer base

 

Deposit growth

 

Financial performance

 

Profitability

 

Liquidity

 #p#分頁標題#e#

Capital structure

 

Market ratios

 

Quality of service

 

Reliability

 

Responsiveness

 

Aesthetic/appearance

 

Comfort

 

Friendliness

 

Courtesy

 

Flexibility

 

Volume flexibility

 

Delivery speed flexibility

 

Specification flexibility

 

Resource utilization

 

Productivity

 

Efficiency

 

Innovation

 

Performance of the innovation process

 

Performance of the individual performance

 

3.2.2. Balance scorecard (BSC) system

BSC is identifying financial and non financial measures to evaluate quality of service. 4 pillars are representing by BSC. Those are;

 

Customer perspectives

Satisfaction of the customers

 

Financial perspectives - Satisfaction of Share holders

 

Internal business process

To satisfy both party what must be offered

 

Learning and growth - Improving, developing, changing process and procedures to satisfy all the parties in the organization to improve efficiency of the organizations continuously.

 

3.2.3. Generic measures system

To evaluate service efficiency the following generic measures can be implement

 

Generic Measures

Type of measurement

Service of Quality

 

Access - Easy to find out supermarket

 

Appearance - Staff appearance, well groomed

 

Availability - products availability

 

Cleanness - Gondolas and shelf must free from dust

 

Competence - Speed of cashiering

 

Courtesy - CSA must polite and respect to customers

 

Responsiveness - Response any queries

 

Security - personal security

 

3.3. Implementing quality management system - (six sigma model)

Improve any process performance either production process or service providing process. This model can be implemented and it has 5 steps.

 

Step - Define measures

 

Step - Measure

 #p#分頁標題#e#

Step - Analyze

 

Step - Improve

 

Step - Control

 

4. Identifying Weakness and opportunities in the process 識別過程中的弱點和機會

4.1.Weakness analysis and strategic implication

Wrongly define some operations

To collect the deposit banking assistant are sending to the outide banking premises, that is very risky because the rob or theft money.

 

Faliures in th the IT system

Banking industry one of the key driver is IT systms in those suystmens failutre affect couters, ATM or brnach operation. Therefore IT deparment need to take relavent action to prevent this kind of situations.

 

Poor promotion

Newly introdce gurnateed invetment paln will be fail because of it is irrational plan.We the customers are get calcualte benefit of the invesment plan, relizing bank try to make fool the new customerss. Therefore NTB need to evaluate that promotion of investment plan.

 

Few brach and ATM

To satisfy customers need exiating ATM's and branch are not adequate. Therefore top management need to increase number of ATM's and mini brach increse the customer service.

 

Suboptoimization is happening & Employee discrimination

This always happen in the top management and they don't allow come with new ideas and try discriminte those people as headche for the bank. This is not acceptable level of pracite because of new ideas are helping to develp the bank service. That culture must changed by HR department.

 

Poor advertising in relation to market leader

Commercial bank is market leader in the banking industry but problem is that NTB is not spend sufficient amount of cost on advertising and they have selected brand ambassder as sport star that is not reflect imporatnce of the bank service.

 

cost of staff training is very high and cust down other cost

NTB has made an agreement with interanationl HRM consultancy firm to get trian the satff. But it is very cost. There are experianced firms are availble in locall to get bank staff training at resonable cost. That must be changed.

 

Employee selections very static do not willing to new comers and do recruitment based on the personal contact.

Junior and senior level staff recruitment is made via personal contact, that is not good practice, it will leads poor operational perfornances.That is need to be chaged by HR department.

 

Poor strategic implication

Competition of the banking inductry is very high and NTB strategies not capable enough to cope the competition.

 

Try to do mass scale promotion, it has failed#p#分頁標題#e#

Promotion that made by using brand ambassader was not successful. Even the NTB advertising fail to highlight their major benefit of the each of bank accounts. That has already capitalized by other players of the industry.

 

Always try todepend group strenght

JKH is large conglomarate bunines group, therfore NTB try use the those group of companies money in their accounts as corporate accounts. But it will not be successful strategy, if any buisness will fail that will directly affect o on the bank operations.

 

Poor opertations of mini brach in the supermrkets

In the supermarket bank service expecting customers are very high, but mini branch is included 3 staff members they can't manage rush time banking operations.

 

4.2. Opportunities analysis and strategic implication

Expansion opportunity in further in sri lanka in norht & east ( war affected areas)

There is an opportunity to open up new brach north & east. Because of those areas high ended customer is having desire to get good banking service. Therefor NTB could capitalize that chance.

 

Can be offered more differntiated Service by giving well traning for the staff

NTB staff always having an attitude as most prestige bank, but they need change that attitude and need do differentiated bank service for the customers.

 

Customer driven promotion.

By analyzing most valuable customer, NTB must offer rewarding system such as;

 

Interest excemeptions

 

Gift vouchers

 

Seasonal promotions on the minor accounts,

 

Customer feed back system over the phone or by SMS,by mail.

This will help to increase the customer satisfaction efficicny of the bank by merging with new technological development.That will help to increase the number of customers and reduce operational failures.

 

Rewarding system for employees

To motivate the employees need to have proper and stimulus arisen rewardign system to increase the sales and productivity

 

5. Conclusion 結論

According to the report and based on practical application of operation management, can be make the following conclusions

 

Importance of the operations management will be increased in future

 

This subject will be more developed and that knowledge need put into practice.

 

Operation manager role of will highly important.

 

HR department must play as supportive department in managing people to implement operational strategy

 

Marketing department is play a bigger role when comes to the sales management or branch level operation.

 

To improve the business performance and quality benchmarking need be practiced by any company. Most effective bench marking practice is industry based bench marking.