Certain new lines of businesses have been launched for an existing client with a longstanding global relationship which impacted the profitability of the operations. The financial viability of the business was under question due to sustained negative operating margin after over 14 months since launch.
A project team was identified consisting of operations members, quality evaluators, and training specialists. Through a detailed analysis of the impact of different lines of business, a set of critical metrics were identified for improvement, and a large DMAIC Six Sigma project with defined sub-projects was launched to drive improvements on multiple fronts simultaneously. Improvements were made on several aspects to drive consistently sustainable efficiencies and a significant increase in profitability. Through a combination of better resource utilization, increased transaction efficiency and improved productivity the headcount of the business was rationalized. Cross-training of resources allowed further level loading of workflow to manage headcount requirements for peak volume handling. New leave planning procedures allowed for better management and accountability of unplanned absenteeism. Workflow templates were fine-tuned to improve turnaround times resulting in increased efficiency. A robust system for reporting was established in order to generate faster visibility of key metrics. Additional business costs were investigated and controlled to ensure spends were maintained in line with the budget.
The project helped improve the operating profit of the businesses from a negative 17.8% to a positive 9.3%, making it financially viable for the client.