Implementation of Lean Service to Reduce Lead Time and Non Value Added Activity in a Banking Institution

• Published in: IOP conference series. Materials Science and Engineering Vol. 505; no. 1; pp. 12076 - 12082
• Main Authors: Hidayati, J, Tarigan, U P P, Tarigan, U
• Format: Journal Article
• Language: English
• Published: Bristol IOP Publishing 01.05.2019
• Subjects: Banking; Lead time; Motor vehicles; Value added
• ISSN: 1757-8981; 1757-899X
• DOI: 10.1088/1757-899X/505/1/012076

Along with the increasing needs of society that is consumptive, banking institutions are required to be able to meet the needs of the community through applications with a series of attributes inherent in service. One of them is credit service of motor vehicle ownership. But in its implementation, cancellation of credit becomes the main problem because it has lost the opportunity to get new customers. Lean Service is used to eliminate wasteful or non value-added activities from all credit application process so as to reduce Lead Time and non value added activity. After drawing the company's condition with Value Stream Maping, activity classification showed that Value Added Activity was 42% while Non Value Added Activity was 58%. Therefore, identification of the root cause of the highest failure with Fishbone Diagram and FMEA with repeated verification activities as a result. This study recommends a new business process by reducing from 21 activities to 14 activitis and reducing processing time from 8 days to 4 days.