Lean Process Flow Project at Wells Fargo Financial

Proplanner Webinar

September 6, 2007

Aaron Bruner

Introducing Wells Fargo Financial

WFF financing allows clients such as Slumberland to offer “12 Months No Interest and No Payments”

We maintain clients by funding and servicing their customers’ transactions

We Provide Private Label Credit Card Services for Clients

Introducing the Document Storage Department

Centralized document storage operations in Des Moines We process over 300,000 documents per month Applications and sales slips are retained so that we have

proof of a binding contract between us and the customer

Wells Fargo Retailer Services in Des Moines

Document Retention - Process Overview

Dealers mail customer applications to our department We image and then store documents for a specified period

of time before destroying Retrieve documents or images when requested

Document Viewed as an Image on Intranet

Lean Process Workout was Necessary

Over 2 year backlog of files to be imaged Imaging production was 45,000 - 75,000 documents per

month vs. incoming volume of 300,000 per month Quality rating poor as retrieval service levels were often

over 14 days

Thousands of Documents Ready to be Moved Off-site

Build S.I.P.O.C. of document storage process Develop value stream maps Create detailed process flow chart Record processing times and Balance Processes* Analyze value add and non-value added tasks* Roll-out new processes for Future State Record productivity and retrieval summary

Lean Workout Project Steps

* ProBalance and Workplace Planner from Proplanner Used

S I P O C

Start

Clients Invoice Collections

Bankruptcy Dept. Application Legal

Dealer Set-up Charge Slips Fraud Dept.

Transmitals/BuyLine Tickets

WI Notices Bankruptcy Dept.

Legal Documents Retrievable Image Compliance & QCU

Customers

Document Storage Process

Suppliers Input Process Output

Dealer/BK Dept submits documents to Retailer Doc

Retention

Document is imaged

Document is filed

Document is prepped

Document is validated/indexed

S.I.P.O.C.

CustomerDealer / Client

Operations Management i.e.: Control

10 Docs Requested / Day

Mail Delivery3-4 trips per day

Fax \ Intranet Document Scan

OPEN

C\T

Cap

Avail

Prep

C\T

Cap

Avail

File

C\T

Cap

Avail

SCAN

C\T

Cap

Avail

INDEX

C\T

Cap

Avail

File

C\T

Cap

Avail

Work Director

Weekly

Forecast

Retrievals Estimate

7 Days

2 min

1 Hr

2 min

1 Day

2 min

7 Days

1 Sec

1 Hr

5 Min

1 Day

1 min

5 Day

Value Stream Map – Beginning State

14 Days

Detailed Process Flow Chart

Balance Processes

Develop Standard, Repeatable Work List. Record Average Process Times to Develop Rough Capacity

Step # Process Processor Task Time Task Location Task Description Calculated Task time Frequency1 W MAIL MAIL_DROP WALK TO MAIL DROP 0/5.34/0 12 M MAIL 10/0/0 MAIL_DROP PICK UP MAIL 10/0/0 13 W MAIL MAIL_DESK WALK TO MAIL DESK 0/22.71/0 14 M MAIL 10/0/0 MAIL_DESK OPEN MAIL 10/0/0 15 M MAIL 15/0/0 MAIL_DESK SORT MAIL 15/0/0 16 M MAIL 15/0/0 MAIL_DESK COUNT DOCUMENTS 15/0/0 17 W MAIL WIP_FILE CARRY TO FILE 0/14.39/0 18 W MAIL OUT_GOING_MAIL WALK TO OUTGOING 0/3.95/0 19 W PREP WIP_FILE WALK TO WIP FILE 0/3.26/0 1

10 M PREP 10/0/0 WIP_FILE PULL DOCUMENTS 10/0/0 111 W PREP PREP_DESK WALK TO PREP 0/8.1/0 112 M PREP 5/0/0 PREP_DESK REMOVE STAPLES 5/0/0 113 M PREP 5/0/0 PREP_DESK VERIFY LEGIBILITY 5/0/0 114 M PREP 5/0/0 PREP_DESK WRITE ACCOUNT NUMBER 5/0/0 115 M PREP 5/0/0 PREP_DESK SORT AND COUNT 5/0/0 116 W PREP SCAN_DESK_WIP CARRY TO SCANNER 0/5/0 117 W SCAN SCAN_DESK WALK TO SCANNER 0/3.94/0 118 M SCAN 5/0/0 SCAN_DESK CREATE COVER SHEET 5/0/0 119 P SCAN 0/0/10 SCAN_DESK SCAN DOCUMENTS 0/0/10 320 M SCAN 4/0/0 SCAN_DESK FILE 4/0/0 121 W SCAN FILE WALK TO FILE 0/5.7/0 122 W INDEX INDEX_DESK WALK TO INDEX 0/6.87/0 123 W INDEX FILE WALK TO FILE 0/8.84/0 124 W INDEX INDEX_DESK WALK TO INDEX 0/8.85/0 125 T INDEX 50/0/0 INDEX_DESK INDEX 50/0/0 1

Documents processed per person per day was recorded over time to determine productivity range per shift. This

was necessary to help balance processor tasks due to daily volume changes and variability which impacts takt time.

Minimum Mean Maximum

Open Mail 2000 4500 7000

Prepping 300 500 1050

Scanning 500 5000 8000

Indexing 400 500 1200

Balance Processing Times

Load all Department Tasks into ProBalance

Balance Processing Times

Look at Existing Balance of Tasks Among Stations

Balance Processes

Review Station Summary During Balancing Process

Balance Processes

Evaluate Processes On the Layout

Workplace Planner to Calculate Non-Value Added Times

Analyze Non-Value Added Tasks

Walk Path Diagram to Calculate Non-Value Added Times

Analyze Non-Value Added Tasks

Lean Graph shows Percentage of Non Value Added Work

Compare Processes on Layout Alternatives

Results and Reports Assist with the Layout Improvements

Standardized Work Chart

From

To

Date Prepared Dept./Location Team Leader SupervisorPrepared by

Quality Check Safety Precaution Standard WIP Units of STD WIP Takt Time Cycle Time Operation

DMIC RetailerEvent Team10-24-06Retailer CellAP/ Daily/Raymour

Wes SepterBob Engler

Input of Retailer

Scanner of Retailer

1 box

Kevin Dellopoulos

Standard Work Chart

ALLRaymour 1.5 secDaily/ AP 3 sec

Raymour 125.2 minDaily/AP 169.5

Prep APrep B

Prep C

Jogger

Current State

One Piece Flow – Beginning State

Layout – Beginning State

Imaging Production Area

Standardized Work Chart

From

To

Date Prepared Dept./Location Team Leader SupervisorPrepared by

`

Quality Check Safety Precaution Standard WIP Units of STD WIP Takt Time Cycle Time Operation

DMIC RetailerEvent Team10-24-06Retailer CellAP/ Daily/Raymour

Wes SepterBob Engler

Jogg

er

Prep A

Prep C

Prep B

Input Doc’s Prepped Doc’sPrepped Doc’s Incoming

work

Input Doc’s

Tracking From A and B

Tracking From A and B

Tracking From A and B

Input of Retailer

Scanner of Retailer

≈150 documents

Kevin Dellopoulos

Standard Work Chart

ALL

Jogg

er

Raymour 2.3Daily/ AP 2.52

Raymour 31:20Daily/AP 1:41:00

Staged box

`

One Piece Flow – Future State

Layout – Future State

New Imaging Production Cells

Adjust variable inputs to see number of FTE required to satisfy production plan. See how capacity handles incoming mail volume and reduces WIP.

Develop Capacity Model

Plan vs Actual

Plan Actual Plan Actual Plan Actual Plan Actual Plan ActualDocuments 30,000 25,000 30,000 21,000 30,000 31,010 30,000 32,221 120,000 109,231

Incoming 18,000 16,000 12,000 27,000 73,000WIP Carryover 100,000 93,000 88,000 68,990 63,769

Staff Needs - Capacity Schedule

Retailer FTE CAP. FTE CAP. FTE CAP. FTE CAP.Prep 12.00 30,000 12.00 30,000 12.00 30,000 12.00 30,000 Prep 2,500Scan 1.20 30,000 1.20 30,000 1.20 30,000 1.20 30,000 Scan 25,000Index 12.00 30,000 12.00 30,000 12.00 30,000 12.00 30,000 Index 2,500

Monthly Total

7-3 thru 7-7 7-10 thru 7-14 7-17 thru 7-21 7-24 thru 7-31 Variable Inputs

7-3 thru 7-7 7-10 thru 7-14 7-17 thru 7-21 7-24 thru 7-31

Customer

Dealer / Client

Operations Management i.e.: Control

10 Docs Requested / Day

Mail Delivery3-4 trips per day

View Document on Intranet

OPEN

C\T

Cap

Avail

Prep

C\T

Cap

Avail

SCAN

C\T

Cap

Avail

INDEX

C\T

Cap

Avail

File

C\T

Cap

Avail

Processing Cell

Weekly

Forecast

Retrievals Estimate

7 Days

1 min

1 min

1 min

5 min

.01 min

40 min

.4 min

.1 min

.5 min

5 min 1 Day

Value Stream Map – Present State

< 1 Day

68,006

34,425 39,37717,480

85,877

29,246

210,075

83,132279,16

1

105,809

321,320

143,293

January February March April May June July August September October November December0

100,000

200,000

300,000

400,000

500,000

Month

To

tal #

Ima

ge

d

Total # Central Capture & Retailer Imaged

RB

R

RB

R

Ca

ptu

re C

en

ter

RB

R

Ca

ptu

re C

en

ter

Ca

ptu

re C

en

ter

Productivity Improvements

Productivity Increased Over 6 Months

Retrieval Improvements

Retrieval Percentage Increased Over 6 Months

0

102030405060708090100

Jan Mar May Jul

TotalDealerIntranetOn-Site

Beginning State Project Duration Post Project

Several Million Documents on-site

Organized and moved off site to secure storage

Stored off-site in secure storage

2 Year Imaging Backlog

Jan 1, 2003 and newer has been imaged

24 hr SLA from receipt of document to being available as an image on Intranet

Project Productivity Summary

Productivity Increase Will Help Quality of Retrievals

Beginning State Project Duration Post Project

Documents found on-site or at client

Documents on-site, Intranet or at client

All documents on Intranet

Retrieval requests are manual

Dept. finds most on Intranet and some manual

Dept. finds all on Intranet – automated

Approx 14 Day Service Level

Approx 7 Day Service Level

Immediate to under 1 Day Service Level

Retrievals at 75% found

Retrievals @ 85% found

Retrievals @ > 97% found

Document Retrieval Summary

Quality of Retrieval Requests up Significantly

Proplanner Software Review

• ProBalance

• Workplace Planner