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Insight’s process mapping & reengineering
provides SMBC with big payoff.
Insight analysis confirms management
suspicions about wasteful work processes in key business units and
identifies streamlining opportunities that culminate in significant
cost savings.
Headquartered in Tokyo, the Sumitomo & Mitsui Banking Corporation
(SMBC) has 21 branch offices across the world that offer a range of
financial services.
SMBC’s executive management sought to reduce operating costs
in its global enterprise via restructuring, outsourcing, redesigning
and/or consolidating its business lines.
Initially, management focused the reengineering efforts in five back
office departments: Trade Finance Processing, Loan Services, Accounts
Payable, Mail Room and Human Resources.
Client
Requirements
To evaluate restructuring opportunities in these departments, SMBC
needed external expertise in the areas of workforce analytics, capacity
modeling, and project management. Specifically, they required:
Insight's Solution
We deployed our Process Mapping & Reengineering (PMR) service
to provide SMBC with detailed views of both the "current state"
and projected "future state" for each in-scope business
unit.
The PMR model metrics applicable to SMBC’s situation yielded
crucial data on:
Data population for the model combined statistically valid process
unit times generated from our Structured Metrics® data collection
technology with transaction volumes gathered from SMBC's automated
sources.
Finally, we created process flow diagrams using Visio schematics
to easily visualize possible processing bottlenecks.
Results
Our reality-based capacity and processing analysis indicated that,
relative to SMBC’s current workload, a surplus capacity indeed
existed within the very business units targeted by senior management
for cost reduction.
In our report, we identified several processes in these areas that
could be streamlined or even eliminated.
Alerted to the excess capacity, SMBC diverted a portion toward additional
throughput in certain departments. At the same time, it redeployed
staff in other units.
These steps resulted in an overall reduction in operating costs.
About SMBC
Created from the merger between Sumitomo Bank and Sakura Bank in April
2001, the Tokyo-headquartered SMBC boast assets of Y101 trillion.
Its 21 overseas branch offices are located in major financial centers
such as London, New York, Toronto, Hong Kong, and Singapore. Financial
services include corporate banking, capital markets, asset management,
and e-commerce.
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