Abstract:
Lean is a concept started as the Toyota Production System (TPS), developed by the Toyoda
(Now Toyota) motor car company. It is a unified, comprehensive set of philosophies, rules,
guidelines, tools and techniques for improving and optimizing a discrete process. Lean
provides a systematic approach in identifying and eliminating wasteor non-value addedactivitiesthroughcontinuous improvementbymaking products through improved speed
&flexibilitywith best quality & lowest cost. Lean is originally practiced in manufacturing
organizations. Applicability of Lean concept to local banking sector is purely untested.
Therefore the main objective of this research is to identify its applicability in local banking
sector. The research is carried out as a case study conducted in randomly selected Hatton
National Bank (HNB) branches. Customer surveys, participative observations and semi
structured interviews conducted in randomly selected HNB brancheswith branch managers
& employees have been used as primary data collection techniques.
The customer survey consists with 17 questions and it delivered to 57 participants in 5 of
randomly selected HNB branches. Primary data obtained through semi-structured interviews
has been categorized under five of applicability indicator measurements such as,
organizational support, cultural compatibility, and applicability of change management
principles, value system analysis of banking operations and sustainability of the concept to
local banking environment. Participative observations have been used to measure
performance ofthe activities completed by individuals in the normal working environment.
Under the study, customer movements, work habits, the statements made and meetings
conducted by them have considered. Under thisstudyfiveof major banking operations Cash
withdrawal or Deposits, Check deposits, FD related matters; Pawning and Account
Openingwerefurther analyzed. It alsoindicatedthat with 95% of confidence interval 59% to
68% of positive reply on applicability of lean concept to local banking environment.The data
gathered is also used to create Present and future state value stream maps which give clear
indication about applicability of Lean in banking seclor.In addition, the study demonstrated
thatminimum of 30% of cycle time can be improved by applying lean tools for the above
operations.
The research is conducted in randomly selected HNB branches whereas region wise or area
wise variations of customer demand for banking operations have not been considered. Also
categorical differences of the customers such as sex differences, age wise and education
level wise differences has not been considered. But if such studies can be carried out by
considering all ofthese variations, some other correlative factors can be identified.
Participative observations were carried out only in 5 of randomly selected HNB branches.
But if it was extended to all branches in the network, the results would be more accurate and
willhelpusto benchmark the cycle time for each and every operation in order to provide more
customer oriented service.
