Lean Thinking in Banking Industry: Waste Identification on Credit Disbursement Process

Abstract

Waste is not only found in the manufacturing industry but also in the service industry, especially in banking industry. This paper describes a comprehensive lean approach applied to the banking industry. Lean in banking industry is used to find waste along the flow of value. This paper focuses on finding waste in consumer loan disbursement process by classifying consumer credit loan activity into value added activity, necessary but non value added activity, and waste. Process Activity Mapping is used to describe all activities in consumer credit disbursement waste identification. The identification shows that total time of consumer credit disbursement activities is 7,461 minutes equal to 15,54 days. This means the average time required to complete the consumer credit process starts from the documents receipt to the disbursement of credit is 15,54 working days. Failure Mode and Effect Analysis (FMEA) is used to decide the level of factor causing waste. The results of FMEA shows the length of time required for consumer loan disbursement due to verification repetition process and waiting time of documents to processed.

Keywords

• Credit Disbursement Process
• FMEA
• Lean Banking