1. Copyright © 2006 Six Sigma Academy International, LLC All rights reserved; for use only in compliance with SSA license. Credit Card Case Study – Round 1

2. Copyright © 2006 Six Sigma Academy International, LLC All rights reserved; for use only in compliance with SSA license. Pg 2 Credit Card Case Study The Business Case The Credit Card Case Study as executed at the Left Dogleg Bank of America (LDBA) -The following Case Study is an example of the application of the Breakthrough Sigma Lean SM Strategy as applied to a Transactional Process, specifically a Credit Card Application process -The Case Study information is described below The Business Case -The United States Duffers Golf Association (USDGA) is interested in issuing a credit card with their logo on it. They have been soliciting various banks to determine how well these banks can handle their account -LDBA has made claims that it can satisfy all of the USDGA needs. Based on this limited information the USDGA has been evaluating LDBA’s performance. -LDBA has many locations throughout the US. The USDGA is evaluating several branches that support the East

3. Copyright © 2006 Six Sigma Academy International, LLC All rights reserved; for use only in compliance with SSA license. Pg 3 Credit Card Case Study Background Information For the purposes of this Case Study we will assume that we are LDBA The Process to be studied is - Credit Card Issuance from Customer Submitting Application to Customer Activating a Credit Card Internal to LDBA and for the purposes of this Case Study, issuing a credit card is a five (5) step process that entails 1.Data Entry For Credit Card Application 2.Background Credit Checks 3.Set The Customer Up In The System 4.Issue The Card 5.Inspect The Card Before Sending To The Customer In a branch bank each of these steps may occur on a different floor within that LDBA branch.

4. Copyright © 2006 Six Sigma Academy International, LLC All rights reserved; for use only in compliance with SSA license. Pg 4 Credit Card Case Study Detailed Process Steps Within each step of the process, there are more detailed steps that allow the applications to be converted into a credit card. Listed below are some of detailed steps 1.Data Entry For Credit Card Application Enter various customer demographic information Identify bank account numbers 2.Background Credit Checks Verify Savings Debt Analysis 3.Set the Customer up In The System Demographic Information Establish credit limits 4.Issue the Card Create the Card Mail

5. Copyright © 2006 Six Sigma Academy International, LLC All rights reserved; for use only in compliance with SSA license. Pg 5 Credit Card Case Study Credit Card Simulation To simulate this process such that we can collect data and learn and apply the Breakthrough Sigma Lean Strategy, we will follow a Credit Card Processing Case Study as applied to the internal processes of LDBA

6. Copyright © 2006 Six Sigma Academy International, LLC All rights reserved; for use only in compliance with SSA license. Pg 6 Credit Card Case Study Credit Card Simulation Details The Case Study simulation is described below. A Customer Credit Card Application will be represented by a sheet of paper that contains 16 circles The 16 circles are sub-divided into four colors with each color representing the four (4) high level steps (each representing a specific skill set) in the LDBA process 1.Data Entry For Credit Card Application – Green 2.Background Credit Checks – Blue 3.Set The Customer Up In The System – Red 4.Issue The Card – Yellow Each circle/dot is an operation -e.g. Verification of Salary Each color is a department -e.g. Background Credit Check Department Each team represents a branch office of the bank - e.g. Divot Lane

7. Copyright © 2006 Six Sigma Academy International, LLC All rights reserved; for use only in compliance with SSA license. Pg 7 Credit Card Case Study: Roles Eight (8) roles are required to execute the Dot Game. Their respective responsibilities are described below (role assignments may be adjusted by the Instructor to meet actual team sizes) -1 Supply Responsible for distributing sheets and dots to the two (2) mail clerks -1 Mail clerk Responsible for moving batches through all steps in the process, delivering the final batches to the customer and delivering dots to the operators -4 Operators Responsible for placing dots in the circles -1 Inspector Responsible for inspecting and documenting the batches for defects -1 CustomerReceives the product, times the cycle

8. Copyright © 2006 Six Sigma Academy International, LLC All rights reserved; for use only in compliance with SSA license. Pg 8 Credit Card Case Study: Mail Clerk The Credit Card Process begins when the Mail Clerk picks up a batch of Dot Sheets from Supply and delivers it to the first operator The Mail Clerk will continue to move the batch through the process from operator to operator, inspector and eventually the customer -A batch contains three individual sheets. Batches, not sheets, move through the process, in order The Mail Clerk will also deliver supplies (dots) to the operators as requested by the operators -The Mail Clerk can only bring one sheet of dots at a time to an operator

9. Copyright © 2006 Six Sigma Academy International, LLC All rights reserved; for use only in compliance with SSA license. Pg 9 Credit Card Case Study: Operators The first operator will place their respective colored dots in the circles on each of the five (5) sheets. After all five (5) sheets have been completed they will ring a bell for the Mail Clerk to pick up the batch and deliver it to the next step in the process -Note: Each operator will begin with one (1) sheet of dots. If they run out of dots they will ring the bell for the Mail Clerk to bring them more dots Operators are permitted to rework a dot if they deem it is not in the circle. They will need to remove the dot and place it on the Dot Rework Sheet and add a new dot to the sheet

10. Copyright © 2006 Six Sigma Academy International, LLC All rights reserved; for use only in compliance with SSA license. Pg 10 Credit Card Case Study: Inspector And Customer Inspector Prior to customer, determine whether the batch is acceptable and can be delivered to the customer Document the number of sheets delivered and the number of “defects” they identified Customer If the customer identifies any unacceptable dot they will use a pen and mark it with an “X”

11. Copyright © 2006 Six Sigma Academy International, LLC All rights reserved; for use only in compliance with SSA license. Pg 11 Credit Card Case Study: Requirements Game requirements -Minimum of 25 Credit Cards (5 batches of 5 sheets) need to be delivered within 15 minutes and you need a profitable process -If more than five (5) batches are delivered your variable costs will be reduced, thus increasing profitability -At the end of the round enter the required information on the Team Input Sheet. We will be using this information to enhance the learning of the tools through application and comparing this data to subsequent rounds

12. Copyright © 2006 Six Sigma Academy International, LLC All rights reserved; for use only in compliance with SSA license. Pg 12 Credit Card Case Study Exercise Round 1 Objective: Execute Round 1 of the Credit Card Process Upon reviewing the information on the Credit Card Process assume your role and the instructor will tell you when to start Stop when the instructor tells you to stop Fill in your metrics on the Team Input Table handout Provide your information to the instructor to compete the Round Summary Deliverable: Execute Round 1 to collect data for baseline performance. Each team will document their general observations of the round on a flip chart. Select a team member to debrief your process observations

13. Copyright © 2006 Six Sigma Academy International, LLC All rights reserved; for use only in compliance with SSA license. Pg 13 Credit Card Case Study Team Input Table Baseline

14. Copyright © 2006 Six Sigma Academy International, LLC All rights reserved; for use only in compliance with SSA license. Pg 14 Credit Card Case Study Metrics Baseline

15. Copyright © 2006 Six Sigma Academy International, LLC All rights reserved; for use only in compliance with SSA license. Pg 15 Credit Card Case Study Benefits Baseline 1.$500 for every sheet that the Customer receives, providing it is correctly placed and accepted by the Customer. 2.$6 per dot for Materials whether it is shipped to the customer, or applied to WIP, or still in Raw Materials, or Finished Goods. 3.Fixed overhead cost of $5,000 per 15 minute cycle 4.$4 per dot for Labor whether it is shipped to the Customer, or applied to WIP sheet, or placed on a "scrap" sheet, or in Finished Goods Inventory. Complete the Metrics reporting sheet and report results back to your Instructor. The Instructor will use that information to determine the impact to your company’s financial statements. The following financial standards and assumptions apply:

16. Copyright © 2006 Six Sigma Academy International, LLC All rights reserved; for use only in compliance with SSA license. Pg 16 The following are trademarks and service marks of Six Sigma Academy International, LLC: Breakthrough Lean ®, Breakthrough Strategy ®, Breakthrough Value Services ®, Breakthrough Change Strategy SM, Breakthrough Design SM, Breakthrough Diagnosis SM, Breakthrough Execution SM, Breakthrough Sigma Lean SM, Breakthrough Six Sigma SM, Breakthrough Software Design SM, FASTART SM, Six Sigma Gold Belt TM, SOLVING YOUR BUSINESS PROBLEMS FOR THE LAST TIME SM. Six Sigma is a federally registered trademark of Motorola, Inc. MINITAB is a federally registered trademark of Minitab, Inc. SigmaFlow is a federally registered trademark of Compass Partners, Inc. VarTran is a federally registered trademark of Taylor Enterprises. Six Sigma Academy International, LLC 15210 North Scottsdale Road, Suite 250 Scottsdale, Arizona 85254 Tel. (480) 515-9501 Fax (480) 515-9507 www.6-sigma.com