Case Study
- June 2008Abstract: With auto loan interest rates basically a commodity, response times on credit decisions and service levels are now the main differentiators for consumers. One global lender was losing 40% of its applications for auto loans in Latin America, mainly due to slow response times. To address this issue, a Six Sigma team was formed to identify the root causes of uncompetitive response time, reduce response time to surpass the competition, and convert 5% of lost business to approved loans. Through the use of basic lean and Six Sigma tools, response times improved by as much as 98%, and contract volume increased by up to 120%. Key players included auto dealers in four Latin American countries, prospective car buyers with a need to finance the purchase, and the lender.
Keywords: Case study - Six Sigma - Lean - Finance - Root cause analysis - Fishbone diagram - Global quality - Business results
