Towards Improving Banking Services Quality - 1 - Introduction – Lean Management

Towards Improving Banking Services Quality

1.

Introduction – Lean Management

 

After World War II, resource scarcity, such as manpower and raw material shortages, led Japanese organizations to adopt principles that ultimately gave rise to Lean Management. Toyota, under the guidance of Taiichi Ohno and Shigeo Shingo, developed the Toyota Production System (TPS) as a response to these constraints, which transformed the auto industry and became the foundation of Lean Management. Thus, Lean Management originated in Japan.

 

Initially applied in the manufacturing industry, Lean Management principles are now utilized across diverse sectors, including services like banking, healthcare, transportation, logistics, and construction. In the banking sector, Lean Management offers several benefits: improved customer satisfaction, faster processing times, reduced operational costs, and enhanced employee morale. By adopting Lean principles, banks not only cut operational costs and reduce processing times but also elevate customer satisfaction. Shorter loan approval times and streamlined services make banks more responsive to clients' needs, building loyalty and trust.

 

A significant focus of Lean Management is on eliminating waste, known as "Muda." In banking, waste can appear as excessive paperwork, prolonged wait times, or inefficient customer service interactions. By addressing these inefficiencies, banks can streamline processes to deliver better, faster services to clients, directly translating to higher satisfaction and lower operational costs. For instance, some banks have successfully reduced loan processing times from weeks to mere days by applying Lean principles to each stage of the workflow. Today, Lean processes are applied globally by organizations seeking to address inefficiencies impacting their bottom line.

 

Inspired by the Toyota Production System, Lean Management organizes and manages work to improve an organization’s performance, particularly the quality and profitability of its processes.

 

Lean is considered a philosophy of continuous improvement. A Lean organization focuses on increasing customer value, eliminating waste, and optimizing operations. The essential components of Lean can be applied across all types of businesses and processes. The main purpose of Lean Management is to create value for the customer by optimizing resources.

 

Dr. Shigeo Shingo, an industrial engineer and major consultant at Toyota, played a significant role in Toyota’s Lean journey. He understood that the success of Lean manufacturing lay in integrating people with efficient processes. In 1960, Shingo developed the Single Minute Exchange of Die (SMED) system, which aimed to reduce setup times and eliminate quality defects. His contributions, such as the kaizen concept, emphasized continuous improvement and became central to Lean philosophy.

 

The term “Lean Thinking” was coined by James P. Womack and Daniel T. Jones to encapsulate their study of Toyota's Production System. Lean Thinking encourages a mindset that recognizes inefficiencies and identifies waste inadvertently created by the organization of processes. This perspective enables businesses to streamline workflows, improving both quality and resource efficiency across various sectors.

 

In short:

 

- Lean is doing more with less time, fewer resources, less inventory, and less manpower, or,

- Lean is achieving more with the same resources.

 

Lean Management is a powerful strategy for organizations seeking to survive, thrive, and grow successfully.

I welcome your comments, questions and suggestions.

Warm regards,

Keshav Ram Singhal 

Introduction to the Blog Series: Towards Improving Banking Services Quality

 Introduction to the Blog Series: Towards Improving Banking Services Quality

 

Dear Readers,

 

Welcome to an exciting new series on this blog, "Towards Improving Banking Services Quality." In today’s rapidly evolving financial landscape, delivering high-quality service in banking has become both a differentiator and a necessity. This series draws inspiration from my Kindle book, Future Banking is Lean Banking (available on Amazon), which I am currently revising. I am eager to share insights from this work with all of you, and I look forward to your valuable feedback as we embark on this journey together.

 

The focus of this series is Lean Banking—a transformative approach aimed at enhancing efficiency, increasing customer satisfaction, and implementing value-driven improvements across the financial services industry. Over the coming weeks, I’ll be sharing revised chapters and ideas that explore how Lean principles apply to banking. Through practical strategies, we’ll look at how to streamline processes, reduce waste, and ultimately enhance the customer experience.

 

Why This Series?

 

Achieving high-quality service in banking demands a continuous improvement mindset. The purpose of this series is not just to share knowledge but to open a conversation. I welcome your comments, questions, and suggestions as each chapter unfolds. Your insights will be instrumental in refining these concepts and ensuring that Future Banking is Lean Banking becomes even more relevant and impactful for readers.

 

What to Expect

 

Each post in this series will dive into specific aspects of Lean Banking, including:

 

·       Reducing inefficiencies to improve customer service

·       Optimizing banking processes for operational excellence

·       Building a Lean-focused culture within banking organizations

 

Through these posts, I hope to provide practical insights that bank professionals, financial service providers, and quality management enthusiasts can directly apply in their work.

 

Join the Conversation

 

I invite you to join me on this journey, offer your valuable feedback, and help shape these ideas into actionable improvements. Additionally, I request that you bring this series to the attention of banking management executives who could greatly benefit from understanding and applying these principles within their organizations.

 

Together, let’s explore how Lean Management can pave the way for a more efficient, customer-focused banking experience. Your experiences, insights, and feedback will enrich this conversation and help shape the book’s content further.

 

Thank you for joining me on this path toward improving the quality of banking services. I look forward to your participation and contributions!

 

Warm regards,
Keshav Ram Singhal

 

Revision of ISO 9001:2015 Quality Management System (QMS) Standard

Revision of ISO 9001:2015 Quality Management System (QMS) Standard

 

In February 2024, the ISO 9001:2015 Quality Management System (QMS) standard was amended to integrate climate change considerations, reflecting global sustainability demands.

 

Key Amendments:

 

·       Clause 4.1 – New requirement: Organizations must assess whether climate change poses a relevant issue within their operational context.

 

·       Clause 4.2 – Added note: Relevant interested parties may have needs and expectations related to climate change.

 

Potential ISO 9001 Revision Timeline

 

The ISO 9001:2015 standard is currently under review for a potential revision. The International Organization for Standardization (ISO) typically revises standards every five years, but updates to ISO 9001 have historically ranged between 6 and 10 years. Initial discussions targeted a 2025 publication, but the revised standard is now expected in 2026.

 

As with previous updates, this revision process will incorporate feedback from industry experts and user groups to maintain the standard’s relevance in today’s quality management practices.

 

Focus of the Revision

 

The revision is expected to:

 

·       Align ISO 9001’s structure with other management system standards (e.g., Annex SL).

 

·       Clarify specific requirements in the annex to reduce ambiguity.

 

·       Potentially address new areas, including:

 

o   Ethics, integrity, vision, mission, and values.

 

o   The role of quality culture in fostering organizational resilience.

 

o   Managing risks and opportunities in dynamic environments.

 

While no fundamental changes to the core structure of ISO 9001 are planned, these updates are intended to harmonize ISO 9001 with other standards, clarify existing requirements, and emphasize factors such as ethics, organizational mission, quality culture, and proactive risk management in quality practices.

 

Additionally, ISO 9000, which provides definitions and quality management principles, is also under review to expand its scope with new terms and definitions.

 

Objectives and Participation

 

The ISO/TC 176/SC2/WG29 committee is responsible for leading the ISO 9001 revision process. The update aims to ensure that the standard addresses current and future quality management needs, making it easier for users to interpret and implement.

 

Key objectives of the update include:

 

·       Reviewing the validity and applicability of existing requirements.

 

·       Evaluating the impact of emerging trends and technologies.

 

·       Aligning with the harmonized structure (Annex SL).

 

·       Addressing requests for clearer interpretation of requirements.

 

Those interested in contributing to the revision process can participate by contacting their National Standards Body or a liaison organization.

 

The decision to initiate a revision was made in August 2023, motivated by the complexities of the global economic and political landscape, as well as technological advancements.

 

Regards,
Keshav Ram Singhal

ISO 9001:2015 QMS Standard in Brief

ISO 9001:2015 QMS Standard in Brief

 

Clause One, the Scope—a standard map to lead,

For every organization, no matter the creed.

Requirements are flexible, built for all,

To boost quality in organizations, whether big or small.

 

Clause Two brings Normative Reference notes,

ISO 9000:2015 vocabulary, fundamentals in its quotes.

Definitions to guide the standard with clarity true,

So all we understand what we need to do.

 

Clause Three deals with Terms and Definitions with care,

It references ISO 9000, precise and fair.

Each term and definition in ISO 9000, laid out right,

To keep our understanding clear and bright.

 

Clause Four, Organization Context, broad and wide,

Interested parties' expectations the standard won’t let slide.

Scope and processes we must determine and define,

To align organization's QMS with business design.

 

Clause Five, Leadership, leads the way,

Top management’s active role here to stay.

Roles, guidance, and values that they share,

The team of the organization remains inspired and prepared.

 

Clause Six, Planning, addresses risks and targets,

Objectives and changes are planned well to get.

Risk-based thinking strengthens the foundation,

To foster success, growth, and innovation.

 

Clause Seven, Support, for all we need,

Resources, skills, to help succeed.

From documents to system knowledge shared,

A solid quality management system, well prepared.

 

Clause Eight, Operation, brings it alive,

Design and production, in which we thrive.

Services or products delivered, outputs controlled,

Standards we met and many processes rolled.

 

Clause Nine, Performance evaluation checks all the way,

Data analysis, internal audits, and management review say.

To measure, to analyze, to see what’s best and true,

So, our systems stay strong, achieve all goals in view.

 

Clause Ten, Improvement, a call to always rise,

Nonconformity and corrective action, learning wise.

Continual improvement and growth, in steps we tread,

Quality’s journey progress, always QMS remains ahead.

 

Annex A  informative adds a guiding light,

Concepts and terms clarified to sight.

Annex B informative provides other standards near,

Thus, ISO makes the broader quality sphere.

 

At the end, a Bibliography is given, wise and deep,

To reference the Quality that we sow and reap.

ISO 9001:2015 QMS standard, in harmony rings,

A popular QMS standard for excellence ISO brings.

 

- Keshav Ram Singhal

Embracing the Seven QMS Principles

Embracing the Seven QMS Principles

In quality’s realm, an organization sets its sights,
On principles guiding it to greater heights.
Customer Focus, the heart of its creed,
Meeting customer needs, it strives to lead.

With Leadership strong and vision clear,
A path for all to hold and steer.
Engagement of People, each voice and hand,
Together, it rises—a united stand.

A Process Approach it proudly takes,
Steps aligned, avoiding mistakes.
Through Improvement, its journey proceeds,
Progress and success in every deed.

Evidence-Based Decisions light the way,
With facts and figures to guide its sway.
Relationship Management, bonds it holds dear,
Building trust year by year.

In ISO’s spirit, it marches along,
With PDCA and risk-based thinking strong.
The road to quality, firm and true,
These seven pillars carry it through.

- Keshav Ram Singhal

The Power of QMS

The Power of QMS

A strategic choice, the strength of QMS,
Guiding each step toward success.
Boosting performance, paving the way,
Building foundations that last and stay.

With benefits that thrive and grow,
It helps meet standard requirements, high and low.
From customer expectations to legal needs,
It empowers organizations to excel in deeds.

To satisfy clients, it clears the way,
Addressing risks, come what may.
Meeting each requirement, setting the tone,
It helps organizations stay well-known.

ISO 9001, the guide we heed,
For all those within and beyond, indeed.
With PDCA’s might and risk-based sight,
QMS shines as an organization's light.

— Keshav Ram Singhal

Happy Quality Month: November 2024

 Happy Quality Month: November 2024

.

In November's crisp and thoughtful air,

Quality Month begins every year.

A time to think, reflect, renew,

To honor quality work that’s tried and true.

.

Each process be checked, each standard be high,

Aiming for excellence, reaching the sky.

Every thing we measure, satisfaction be our goal,

Quality’s heart beats in the whole.

.

We pledge to improve, to learn, to grow,

For better processes, in each task we sow.

From risk-based thinking to perfect design,

Quality’s journey should be everyone line.

.

Together, let’s raise standards strong,

Correct the errors, eliminate the wrong.

With dedication, we should be bold and true,

November’s call us to dedicate us Quality’s view.

.

So we should strive, with our purpose clear,

Do what is planned every day, each month, each year,

Always implement standards that set high—

So that we get our goal and reach the sky.

.

Keshav Ram Singhal

The Journey from Little ‘q’ Quality to Big ‘Q’ Quality

The Journey from Little ‘q’ Quality to Big ‘Q’ Quality

 

Quality is a fluid concept—difficult to define and hard to manage, largely because it is subjective. Every individual has their own perception of quality. Various authors have defined quality differently, leading to ongoing discussions about its meaning. Juran’s Quality Handbook provides two essential definitions of quality:

 

1.   Quality means those features of products that meet customer needs and thereby provide customer satisfaction.

 

2.   Quality means freedom from deficiencies—freedom from errors that require rework or cause field failures, customer claims, and so on.

 

Dr. Joseph M. Juran states that quality means fitness for use and emphasizes that it is the customer who defines fitness. In the 1980s, he introduced the concepts of little 'q' quality and big 'Q' Quality, which were widely discussed during that decade.

 

Juran introduced this distinction to shift organizations' focus from narrow, product-based quality control to a strategic, organization-wide approach. His goal was to encourage management leaders to embrace quality across all levels and functions, not just during production or service delivery. The evolution from little 'q' quality to big 'Q' Quality marked a significant transformation in how quality was perceived and managed.

 

Historical Evolution of Little 'q' and Big 'Q' Quality Concepts

 

Juran, known for his Juran Trilogy (Quality Planning, Quality Control, and Quality Improvement), observed that most organizations focused too heavily on inspecting product quality—a practice he referred to as little 'q' quality. He argued for a broader, more strategic perspective: organizations needed to align quality management with their strategic goals to achieve sustainable success.

 

At the time, Japanese industrial products were outperforming Western counterparts, which compelled Western organizations to rethink their quality strategies. This transformation extended beyond inspection and control; it introduced a new vision of quality as an integral part of the entire business system.

 

Juran emphasized the role of leadership and system thinking in achieving quality. He advocated for integrating quality into the organization’s culture. In his view, focusing solely on little 'q' quality was insufficient to meet evolving customer needs. Instead, quality needed to permeate all areas of an organization, from R&D and finance to customer relations and supply chain management.

 

In 1987, the International Organization for Standardization (ISO) introduced the ISO 9000 family of quality management standards, marking a shift toward systematic quality management. By the 1990s, the concept of big 'Q' Quality became aligned with Total Quality Management (TQM) principles, emphasizing cross-functional collaboration, customer focus, and continuous improvement.

 

This evolution also influenced subsequent versions of ISO 9001, which moved from simple product or service control to a comprehensive management approach. The newer standards stressed leadership involvement, error prevention, continual improvement, and customer satisfaction, thus fully embracing the big 'Q' Quality concept.

 

Little 'q' Quality

 

The little 'q' quality concept focuses on operational-level activities and has a narrow scope. It reflects the traditional understanding of quality, concentrating primarily on product or service outcomes.

 

This approach emphasizes quality control, inspection, and defect prevention or correction during the production or service delivery process. Little 'q' quality ensures that each manufactured part or rendered service meets the required specifications and expectations.

 

Big 'Q' Quality

 

The big 'Q' Quality concept has a broader, organization-wide focus. It represents a holistic and strategic approach to managing quality, involving the entire organization and all its processes.

 

Big 'Q' Quality focuses on long-term goals, such as customer satisfaction, continual improvement, and organizational excellence. This approach incorporates TQM practices, the implementation of national and international standards, leadership involvement, and stakeholder engagement. It also requires regular monitoring and measurement to ensure that quality goals are achieved consistently.

 

The ultimate aim of big 'Q' Quality is to foster a quality culture across all levels of the organization. It integrates quality into the organization's mission and promotes continuous improvement practices, such as Kaizen and 5S.

 

Summary

 

The concept of big 'Q' Quality encourages organizations to move beyond individual product or service quality and develop a comprehensive quality management system. This system requires top management’s involvement, along with processes and people at all levels, to ensure sustainable success.

 

In short, little 'q' quality focuses on "doing things right," while big 'Q' Quality emphasizes "doing the right things" for long-term, sustainable success. The journey of quality has evolved from little 'q' quality to big 'Q' Quality, reflecting a shift from operational efficiency to strategic excellence.

 

Regards,
Keshav Ram Singhal

 

World Standards Day 2024

World Standards Day 2024

 

World Standards Day (WSD) is celebrated globally on 14 October each year to recognize and honour the dedicated efforts of the professionals and experts who develop voluntary standards within organizations such as the Bureau of Indian Standards (BIS), American Society of Mechanical Engineers (ASME), International Electrotechnical Commission (IEC), International Ethics Standards Board for Accountants (IESBA), International Organization for Standardization (ISO), International Telecommunication Union (ITU), Institute of Electrical and Electronics Engineers (IEEE), Internet Engineering Task Force (IETF), and other similar bodies.

 

 

Courtesy Image - ISO Website

The primary aim of World Standards Day is to raise awareness of the significance of standardization among regulators, industries, and users. Standardization simplifies processes, fosters innovation, enhances efficiency, reduces waste, and helps create improved products, services, and systems.

 

The date, 14 October, marks the day in 1946 when delegates from 25 countries convened in London to establish an international organization aimed at promoting standardization. The first World Standards Day was celebrated in 1971. It is also referred to as International Standards Day.

 

Around the world, national standards bodies and international organizations commemorate this day through various activities. Each year, World Standards Day has a unique theme. For 2024, the theme is "Shared Vision for a Better World: Standards for SDGs," aligning with the Sustainable Development Goals (SDGs) for peace, prosperity, and the well-being of people and the planet. Achieving these SDGs is an urgent call to action, requiring collective global efforts.

 

International standards provide practical solutions that support these goals. By using these standards, we contribute to addressing global challenges. SDG 9 emphasizes building resilient infrastructure, promoting inclusive and sustainable industrialization, and fostering innovation. International standards serve as the backbone of global progress, ensuring interoperability, security, and sustainability while fostering global collaboration. This is crucial in accelerating innovation, especially in fields like artificial intelligence (AI).

 

The joint message from ISO, IEC, and ITU for World Standards Day 2024 emphasizes that international standards form the invisible infrastructure behind the products and services we depend on daily. They ensure that systems and processes are safe, secure, and sustainable. Standards are built on collaboration and highlight the power of global cooperation. Thousands of ISO and IEC standards contribute directly to achieving each of the 17 UN Sustainable Development Goals (SDGs). Furthermore, responsible AI—guided by international standards—can significantly support the goals of SDG 9.

 

I am happy to inform that I keep sharing awareness articles and other content from time to time for standards and quality awareness on my following blogs:

 

- Quality Concepts and ISO 9001:2015 QMS Awareness 

- Awareness on Quality and Quality Management System- Hindi Blog (गुणवत्ता और गुणवत्ता प्रबंध प्रणाली पर जानकारी) 

 

On this occasion, I extend my heartfelt best wishes to everyone, particularly to those involved in developing, promoting, and using standards to create a better, more sustainable world. Happy World Standards Day 2024!

 

Regards,
Keshav Ram Singhal