Ing Direct Canada Case Study

2589 Words 11 Pages
Register to read the introduction… Hourly rate for employees – 12$/hour
Hourly rate after Fringe Benefits– 15.6$/hour
Cost per employee per month – 625X4=2500$
Cost of Division per month – 2500X41=102,500$
Productive working time for Operational Associates - 6.5 hours daily Total OA employees working on the mail room operations - 9
Actual productive time worked by 9 employees per day – 50.5 hours Actual productive hours worked per employee per day – 5.61 hours

Current level of productivity based on a low mail volume on a daily basis Time Spent on Mail Extraction - 50 minutes per 100 pieces of mail (Done by 1 OA employee) Time Spent on Sorting and Checking – 6 person hours per 1,000 mail pieces (2 OA’s on new clients, 3 on existing clients) Time Spent on Scanning and Encoding Cheques – 7.5 minutes per 50 cheques (Done by 1 OA employee) Time Spent on CIfing Accounts -
New Single Accounts – 30% of mail - 1.75 person hours per batch of 50 New Joint Accounts – 40% of mail - 2.5 person hours per batch of 50 Single accounts with CIfing already done – 10% of mail - 1.40 person hours per batch of 50 Joint Accounts with CIfing already done – 20% of mail - 1.75 person hours per batch of 50 Time Spent on Posting Cheques -
New Accounts – 1.25 person hours per batch of
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This will make the employees stay well into the night and chances of errors in this situation are extremely high. Financially the bank will lose more than thousand dollars a day on such mail volume increases. Such a situation seems very concerning for the operations division considering doubling of new accounts projected next year and 30% growth after that. Considering the 10 million $ corporate office is spending on advertising, these projections can even be more. In such a case the current staffing levels will definitely be inadequate for operations to handle cheque deposits and process new accounts timely and efficiently, within a day as the bank guarantees. The operations group is currently spending a lot of capacity and time in processing and preparing new accounts. CIfing new accounts also takes significant man hours as the process is further divided into single accounts and joint accounts. It takes up to 50-60 % of their capacity and around 40-50% of the total person hours. Processing for cheques for existing accounts only took up to 15-20% of mailroom capacity. Extracting mail and scanning and encoding of cheques, is also taking

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