EXECUTIVE DIPLOMA

IN MANAGEMENT (BUSINESS)

GROUP ASSIGNMENT

COURSE CODE : UFA 2006

COURSE TITLE : OPERATION MANAGEMENT

MATRIC NUMBER : NAME MATRIX NO

LOH SOON CHING UFC 180041
TAN KOK LAM UFC 180059
RIMA MALINDA BASRIL UFC 180067
NOORAIN MOHD SAID UFC 180047
NOR AFIDAH MOHD@MUHAMMAD UFC 180048

CLASS : UFC 1118

LECTURER : MR RAVICHANDRAN
Executive Summary

The report is about Operation Management in banking industries. This report discusses

operational issues within banking organizations where the constraints and challenges faced by

the banking sector as a result of the transmission of the covid-19 virus. The discussions were

focused around some key areas as location selection, process and capacity design, good and

service design, quality management, human resource and job design, supply chain

management, inventory scheduling, maintenance and also cost.

This report analyses the challenges of operational process management for banks. The

involvement of customers in service processes of financial institutions make these not as easy

to manage as production processes. In response to these challenges, cornerstones for a general

framework for operational management of service processes will be developed. There are also

a chapter to present a framework for structuring service processes which allows combining

influences by customers and an operational process management. In this report there is also a

section that describes the role of the operations manager in a bank branch.

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Introduction

Operations management is the process that generally plans, controls and supervises

manufacturing and production processes and service delivery. Operations management is

important in a business organization because it helps effectively manage, control and supervise

goods, services and people.

Operations management cuts across every sector and industry as it may concern. Operation

management finds use in every business though some might not be obvious. In health sector,

operations management ensure there is proper health delivery with the right instruments at the

right time. It also helps people like nurses, doctors, surgeons, and other health officers deliver

timely service. When something goes missing, a technical and savvy individual knows what is

at fault.

For a production or manufacturing company to be successful, Operation management is major

unit that must first stand. Take an oil and gas company for example, product has been

discharged by ship to the reservoirs in order to be made available for a large amount of

customers. Operation management sees to the effective delivery of the products and also plans

and schedules what and how must be done. With Operation management people achieve more

and productivity is increased.

The financial services industry faces significant competitive pressures. Economic and political

influences, incessant regulation, and fast changing markets make for a highly complex and

dynamic environment. Thus, banks are forced to permanently improve their performance -

raising process performance represents one of the biggest levers for success.

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Public Bank Berhad

Public Bank Berhad was founded in 1966 by Tan Sri Dato’ Sri Dr. Teh Hong Piow,

with the vision of growing Public Bank to be “a Bank for the people” in serving the banking

needs of ordinary people. On 6 August 1966, Public Bank opened its door for business at its

first branch located in Jalan Gereja, Kuala Lumpur with 62 pioneer staff. On 6 April 1967,

Public Bank was Listed on the Kuala Lumpur Stock Exchange (now known as Bursa

Malaysia Securities Berhad). Public Bank Berhad offering financial services in Malaysia as

well as the Asia Pacific region. Public Bank is currently one of the largest banks in Southeast

Asia, with over RM 363.76 billion (US$91.26 billion) of assets and RM71.90 billion

(US$18.04 billion) in market capitalization in 2015. Public Bank is the largest bank in

Malaysia by shareholders' funds, second largest by market capitalization, just behind

Maybank and third largest by total assets, behind Maybank and CIMB.

It is a specialized institution in that it offers a comprehensive range of financial products and

services which include personal banking, commercial banking, Islamic banking, investment

banking, share broking, trustee services, nominee services, sale and management of unit trust

funds, bancassurance and general insurance products. Public Bank's strategy is centered on

growth in the retail banking business particularly on the retail consumers and small and

medium enterprises ("SMEs").

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Nature of Business/Operations

Public Bank Berhad engaged in all aspects of commercial banking and the provision of

related financial services. The Public Bank Group also well knowns for its strong financial

performance and consistent prudent management. It is consistently accorded with strong credit

and financial ratings from local and foreign rating agencies. Public Bank currently has a

network of 259 branches and over 2000 self-terminals in Malaysia. The company also has its

presence in the Asia Pacific region with a network of 1 subsidiary in Hong Kong (Public Bank

(Hong Kong) Limited, with 79 branches), 1 subsidiary in Cambodia (Cambodian Public Bank

Plc, with 30 branches), 1 subsidiary in Vietnam (Public Bank Vietnam Limited, with 12

branches), 4 branches in Laos, 3 branches in China and 3 branches in Sri Lanka. In total, the

company serves more than 9 million customers in countries where it operates.

Branch Organisation Chart

Public Bank branch organization is heads by Branch Manager and assists by Banking Services

Manager for frontline operations while credit operations and marketing operations is direct

under Branch Manager supervision.

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Nature of Product/Services

Over the years, Public Bank has grown to provide a comprehensive range of financial products

and services. These include personal banking, commercial banking, Islamic banking,

investment banking, share broking, trustee services, nominee services, sale and management of

unit trust funds, bancassurance and general insurance products. To serve customers better, the

Group is strengthening its digital capability and offering in line with the evolving needs of

customers.

Current Situation

One of Public Bank major responsibilities is catering to the financial needs of its clients. These

responsibilities include providing premier financial services to new and existing customers in

the field of personal and corporate banking, SME banking, and investment banking whilst

taking into account the financial obligations of the customers. In this assignment, financial

services provision will be analysed because it is the core operation function for Public Bank.

Operations Manager Roles

A banking operations manager helps establish, maintain, and facilitate a financial

institution’s method of doing business. The operations manager likely oversees all transaction

reports and ensures that a high degree of accuracy is maintained by the bank. They also work to

ensure that procedures related to cash on hand totals, armored car pickups, facility

maintenance, and other subjects are handled properly.

Since many banks are multiunit operations, the operations manager typically has a template for

the various procedures at their bank; it is their duty to make sure these standards are adhered to

and maintained. Every transaction at a bank creates a record, and these records must also be

examined carefully for accuracy. In most cases, the operations manager signs off on the final

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reconciliations for their bank at the close of business. With many banks, the operations

manager also participates in the hiring process and is expected to help train new hires. Other

tasks performed by the operations manager include ensuring that invoices in areas such as

utilities, rent, and maintenance are approved and paid in a timely manner.

A banking operations manager typically must possess a strong background in accounting or

finance, as well as a bachelor's degree. Additionally, most banks only consider applicants for

this position who have extensive experience in banking at a junior-management level. The

operations manager should expect to work during regular business hours in an office

environment.

Operational Issues

When Malaysia takes precautionary measures in dealing with the transmission of covid-

19 virus, the banking industry must also comply with the Standard of Procedures (SOP) set by

the National Security Council. Indirectly it has an impact on the day-to-day operations of the

bank when only ten (10) customers are allowed to be on the premises at a time and operating

hours are omitted during the period of movement control orders. Customers who want to deal

with banks also have constraints when banking transactions are restricted to certain transactions

only.

Banks perform a variety of operations ranging from basic or primary functions like day-

to-day transactions at a branch to others that maybe the agency or general utility services in

nature. The transactions that are incidental to revenue/sales or sustaining the business are an

important element of the banking industry value chain. One of Public Bank major

responsibilities is catering to the financial needs of its clients. These responsibilities include

providing premier financial services to new and existing customers in the field of personal and

corporate banking, SME banking, and investment banking whilst taking into account the

financial obligations of the customers.

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 The covid-19 virus has had an impact on banking operations. This has become a

problem and a challenge to the Public Bank. In Operations Management, the bank needs to

ensure that daily transactions run smoothly, customers get the necessary services. and the

performance of the bank is not affected. At the same time, the safety of customers and

employees should also be given priority.

Location Strategy

Public Bank currently has a network of 259 branches in Malaysia. One of its branches is

Salak South located in a commercial building at Sungai Besi, Kuala Lumpur. The branch is

strategically located within Sungai Besi industrial area which prominently linked to Sungai

Besi Expressway and easily accessible by all levels of customers such as retail and wholesale

businesses and nearby residential customers. It is close to other commercial banks such as RHB

and CIMB Bank. While the nearest residential area is Iris Apartment, Sri Penara Apartment,

Lestari Apartment etc.

Layout Plan

Layout design of Public Bank branches deemed one of the key elements to get

flexibility, quality of working life, good relationships with clients and effectively and to

improve the image of the Bank. Salak South branch layout has designed into 2 levels, of which

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ground floor is banking hall for day-to-day banking transactions and first floor is credit

department for customers wish to take credit facilities. At banking hall, there are teller counters

to service customers’ banking transaction such as cash deposit and withdrawal as well as

remittances services, opening of banking accounts, and investment activities such as unit trust

and bancassurance investment. Besides, for convenience banking access after banking hour,

there are cheque deposit machines and automatic teller machines been installed next to banking

hall. As for customers wish to access to lending activities, there is credit department located at

first floor to meet customers’ need.

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The Work Design

Banks perform various types of transactions and activities to support their banking

business. These transactions may include making or accepting payments, trading, clearing and

settlement of accounts, and custody.

i) Acceptance of deposits

Deposits are the basis of the loan operations since banks are both borrowers and lenders
of money. As borrowers they pay interest and as lenders, they grant loans and get

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 interest. These deposits are generally taken through current account, savings account,
and fixed deposits. Current account deposits can be withdrawn to the extent of the
balance at any time without any prior notice. Savings accounts are for encouraging
savings by individuals. Banks pay rate of interest as decided by central banks on the
deposits. Withdrawal from these accounts has some restrictions in relation to the
amount as well as a number of times in a given period. Fixed accounts are time deposits
with a higher rate of interest as compared to the savings accounts.

ii) The lending of fund

The second major activity of banks is to provide loans and advances out of the money

received through deposits. These advances can be made in the form of overdrafts, cash

credits, discounting trade bills, term loans, consumer credits, and other miscellaneous

advances. The funds lent out by banks contribute a great deal to trade, industry,

transport, and other business activities.

iii) Clearing of cheques

Cheques books are issued to the holders of accounts in banks. The cheque is a

negotiable instrument and the most convenient and widely used credit instrument.

Cheques are used to facilitate trade and business by endorsements and withdrawal of

deposits. Banks render a very important service to their customers by collecting their

cheques drawn on other banks. It is the most convenient and inexpensive medium of

exchange that does not require the actual movement of cash from one transacting party

to another. Mainly, two types of cheques are often used bearer and crossed. Bearer

cheques can be encashed immediately at bank counters whereas crossed cheques can

only be deposited in the payee's account.

iv) Remittance of funds

Banks also facilitate fund transfer from one place to another, leveraging the vast

network of branches that are interconnected to each other. Many banking instruments

are in usage for enabling transfer of funds from one account to another like bank drafts,
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 pay orders, wire or mail transfers. Bank earns nominal commission by way of bank

charges on some of the transfers. The bank issues a draft for the amount at its own

branch which can be credited to another account which might be with a different

branches or different banks. Banks collect the amount on behalf of the depositor which

is known as the clearing process. 

v) Lockers and Safe deposits

Bank safe deposit lockers are a good option for safeguarding valuables and important

documents. Each locker is operated by a combination of two sets of keys, one for the

customer, and the other with the bank. The locker can only be operated if both the keys

are used. Banks charge nominal fees to provide the locker facility. 

vi) Bill Payment services

Banks also provide services related to bill payments, payment of insurance premiums,

collection of dividends, etc. Recurring payments can be automated for payment using

the facilities extended by modern banks. Account holders can directly pay from their

account or using credit/debit cards for their electricity, gas, landline and mobile phone

billers, and many more.

vii) Online Banking

The growth of the Internet and e-commerce has transformed the banking industry and

customers are fast moving from branch banking to virtual banking. Users with internet

on PC or Mobile can get connected to the banks website and avail a variety of banking

services and functions. These services lower the transaction costs and add to the ease

and speed of the transaction flow.

The Process Strategy

Public Bank is standout its peers in the industry by providing speedy and courtesy

customer services, for example standard waiting time and standard serving time within 2

minutes. Public Bank has setup Customer Service Charter in 2011 as standard guideline to its
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employees to ensure excellent service provided by its employees to its customer. To continuous

providing such services to customer, Public Bank has continuous upgrade its technology to

smoothen the process.

For example, Public Bank has implemented streamline process in account opening in

recent years by simplified the whole process where customers are no longer required to fill up

the application form but do the biometric thumbprint on the device instead. Upon account

opened, customer shall deposit fund into their account and the account is ready to use.

As for lending activity, Public Bank aimed to provide speedy approval to its consumer

lending customers within 5 working days whereas 10 working days to its commercial lending

customers. To ensure it is deliverable, Public Bank has adopted electronic loan delivery system

to shorten the loan application turnaround time. Upon customer submitted their application,

branch operations will escalate the application via electronic to head office for decision within

3 working days. (Source: https://www.pbebank.com/Others/Customer-Charter.aspx)

To battle this Covid 19 pandemic, Public Bank has encouraged its customer to adopts

online banking to avoid face-to-face contact. Therefore, Public Bank has ensured it online

platform is user-friendly to all levels of customers. As todate, Public Bank has roll out PBe or

PB Engage App (Smartphone version) and PB Enterprise for its customers to perform the

transactions via digital platform without any disruption chain.

Capacity Management

Capacity Management are  process which is used to make sure the IT capacity of Public Bank

capable to continual provision of consistent and acceptable service level at a known and

controlled cost. The main purpose of capacity management in Public Bank is to make sure that

the capacity of the IT services and infrastructure is able to meet the agreed upon requirements

of capacity and performance in a manner which is both timely and cost-effective.

Capacity management provide several benefit which is improvement in performance and

availability of IT services, distinguishing the activities which are long-term and strategic from
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the ones which are day-to-day operational tasks and reduction in problems and incidents related

to capacity and performance.

Three sub process in capacity management are business capacity management , service

capacity management and component capacity management.

Due to Pandemic Covid-19 Public Bank had upgrade their business capacity management

,service capacity management and component capacity management . Capacity management

that had been upgraded are :

1) Create an attractive Youtube Content and attract subscriber , add up income at the same

time as a marketing technique created by Capacity Manager and team of capacity of

management Public Bank.

2) Public Bank had created and taught user how to use Public Bank E-service through

Youtube,Website and pamphlete.This service capacity management had shown Public

Bank effort to encourage user that want to avoid face to face services in Bank with just

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one click through apps and website of Public Bank. The website link are

https://www.pbebank.com/Personal-Banking.aspx . Public Bank had upgrade their e

services due to some people afraid to make transaction in bank and went to crowded

places due to Covid-19 pandemic.The objective are to ease customers to perform the

transactions via digital platform without any disruption chain.Example transaction can

be used are Bill payments via e-services ,DuitNOW transactions,Pay bills via

JomPay,Public Bank Enterprise Bulk Payroll/Payment(Approve/Reject/Stop Payment

File).

a)Bill Payment via Public bank apps or website

The tutorial are shown in youtube channel of Public Bank.First customer need to login ,

enter user ID ,password and choose Payment > Bill Payment > To other Bill >Select a

vendor to pay >Select a choice of account for payment > enter amount to pay >Verify

payment details and request PAC Number >Key in PAC > Payment of Bill successful.

b)Bill payment Via jomPAY

The tutorial are shown in youtube channel of Public Bank.First customer need to login ,

enter user ID ,password and choose Payment > jomPAY > To other Bill >Select a

choice of account for payment >Key In Biller Code or Account Number> enter amount

to pay >Verify payment details and request PAC Number >Key in PAC > Payment of

Bill successful.

c)DuitNow transactions

The tutorial are shown in youtube channel of Public Bank.First customer need to login ,

enter user ID ,password and choose Fund Transfer > DuitNow > Register DuitNow ID

and choose receiving account >Accept terms and condition and click Next >Select a

choice of account for payment >Key In Biller Code or Account Number> Request PAC

now >Verify details before enter the PAC Number and click Confirm >Complete

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 Registration.This is step to register DuitNow ID.Besides using PBe customer also can

use PB Engage to register DuitNow ID.

d) Public Bank Enterprise Bulk Payroll/Payment(Approve/Reject/Stop Payment File).

The tutorial are shown in youtube channel of Public Bank.Public Bank Enterprise

customer who had sign up for Public Bank ECP will go through 3 step to perform ECP

Payment or ECP Payroll transactions. Step 1 are prepare payroll/payment exces

file.Step 2 are upload payroll/payment exces file.Step 3 are Approve payroll/payment

exces file.

3) Public Bank introduced new business capacity management, Targeted Repayment

Assistance. This programme objective are to maintain and avoid customer run without

paying balance of debt due to several of customer had faced business problem,lost job

and financial problem due to pandemic Covid 19.Public Bank aim to control income

and outcome.Public Bank would give 3 month deferment of installment up to 50% for

B40 ,Micro Enterprise / SME and M40.People registered under B40 are detected

through Bantuan Sara Hidup(BSH) database or Bantuan Prihatin Rakyat(BPR)

database.Other than that,Its also eligible for Micro Enterprise or Micro SME with

approved loans or financing limit up to RM150,000.

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4) Other Bussiness capacity management to make sure income of Public Bank under

control during Covid 19 pandemic and Flood affected area are through created “ Flood

Relief Assistance Determent of Repayment/Payment”. Its aim to reduce the burden of

customer and at the same time make sure income under control not loss.Good capacity

management provide businesses with the ability to make more informed decisions about

which to invest .

5) Public Bank had launch “Safety Tips To Safeguard your Card Against Fraud” upgrade

their Component capacity management.The safety tips taught are always keep card safe

and secure,don’t lend card and don’t leave card.Don’t use easy to guess card PIN(like

date of birth or IC number),Report loss or stolen card immediately,check card statement

and monitor transaction regularly and protect from online fraud.

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Technology Adoption in the process

Customers’ interaction with banks is constantly evolving. Globally, rapid and

dramatic advancement in technology is presenting new opportunities for ‘nextgen’ innovations

to flourish within the banking system. Technology is currently redefining

business operations. Likewise, the Public Bank Group is using technology to engage with

customers by investing in IT platforms to meet expectations of customers that are increasingly

technology savvy. The Group’s digital enablement initiatives are also aligned

with Bank Negara Malaysia’s agenda of promoting electronic payments for a more efficient

and effective payment system. The Public Bank Group’s digital transformation strategy is

driven by convenience, security, efficiency and innovation.

Convenience

As technology becomes more prevalent, convenience is among the key elements for enhanced

customer experience. Internet banking customers are expecting enhanced simplicity in its

features and functionality with up-to date and interactive tools. In 2014, the Public Bank Group

revamped its internet banking platform, PBe, to include enhanced features with secure

and fuss free banking services. PBe is accessible anytime with internet browsers from

computers, as well as tablets and smartphones equipped with iOS or Android operating system.

The makeover has attracted increased usage of Public Bank’s PBe internet banking. In 2016,

the number of registered active users grew by 23.4% for both retail and corporate users,

while transactions performed via the PBe internet banking platform increased by 48.3%.

As the use of smartphones and tablets increases, customers are increasingly seeing mobile

banking as a faster and more convenient touch point, and it is expected to become even more

widespread in the years to come. The Public Bank Group’s mobile platform, PB engage, is

designed to offer customers secure and convenient banking, with features such as Loan

Calculator, Forex Rates Inquiry, and JomPAY readily available.

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Customers’ interest in PB engage is reflected in the significant increase in the number of

individual users which grew by 85.9% and the increase in corporate users by 66.3% in 2016. In

the near future, PB engage will have additional features such as Widget and PB eGift. A new

mobile wallet that enables customer to make payment with credit card through the use of

mobile phone is also in the pipeline.

Security

With the increasing shift to digital banking, the Public Bank Group has tightened online

security. In this context, the Group has invested in a heuristic online fraud detection platform,

which leverages on risk-based, multi-factor authentication to protect its customers

when accessing PBe internet banking and PB engage mobile banking. The

fraud monitoring system analyses various indicators to identify any suspicious activities

performed by customers. Likewise, the Public Bank Group’s Transaction Banking digital team

works closely with its Information Technology Division and cyber security vendors on

any potential threats, risks and vulnerabilities detected in order to safeguard customers’ interest.

Efficiency

To cope with the projected influx of e-banking customers, the Public Bank Group’s PBe

internet banking is set to go through a series of upgrades. In 2016, the Group has set a more

stringent key performance indicator (“KPI”) benchmark for systems availability, in line with

higher expectations on the reliability of critical systems. To meet the new KPI, new servers

were purchased to handle three times more concurrent internet banking transactions. In

addition, the Group also worked on improving efficiency on time-to-market for its

products and services. The Group will continue to ensure its customers, especially those who

are digital novices, get to experience a smooth transition to the e-banking platforms

Quality Management system

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To improve the QMS service level, the Public Bank Group has implemented initiatives to

station Customer Service Ambassadors in banking halls to encourage and assist customers to

utilize the self-service machines for their banking transactions. For example, customers with

cash deposit and withdrawal of RM5,000 and below are encouraged to use the self-service

terminals. Complaint Management the Public Bank Group’s Complaint Unit (“CU”) is

responsible for managing, monitoring and ensuring customer complaints are promptly

addressed. The function of the CU includes monitoring and following up on the action items for

each of the respective parties within the stipulated turnaround time. In addition, the CU also

acts as an intermediary between the Group’s operating units and complainants. To facilitate an

efficient work process, the Public Bank Group has established a robust and effective system,

namely the Complaint Tracking System (“CTS”) which records all complaints received.

The system tracks each complaint through its life cycle. This ensures that the current status of

the complaint is kept up-to-date, with all parties involved being kept informed. Functionally,

the CTS requires each party to access the system to track, update and monitor the status of each

complaint. The functionality of the CTS allows the CU to keep track of the complaint status

including the resolutions, in terms of aggregate, type and frequency to allow statistical analysis

of complaints to be produced as and when required. The CTS also enables the Public Bank

Group to resolve each complaint within an internally set 10-day turnaround time standard,

which is more stringent than Bank Negara Malaysia’s 14-day complaint resolution requirement.

Any complaints which are complex in nature, and require a comprehensive investigation and

additional response time are addressed in writing by the CU to the complainant. The robust and

effective Complaint Tracking System has enabled the Public Bank Group to achieve a 100%

compliance rate in meeting the Group’s internal turnaround time in processing complaints,

which translates to full compliance with Bank Negara Malaysia’s Industry Wide Benchmarking

Report on Customer Service Indicators in Handling Queries and Complaints. Customer

Feedback Survey the Public Bank Group has two surveys in place to solicit customers’
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satisfaction level. A. Survey on Customer Satisfaction on Loans Delivery Services the Public

Bank Group has conducted survey to gauge customer satisfaction on the Group’s loan service

delivery. Through the regular feedback from customers, the Group is able to assess the service

quality and loan products from customers’ perspective. The Group evaluates the result and

initiates further enhancement to meet the needs of customers.

ISO 9001 Standard Certification

In the year 2000, the Public Bank Group embarked on a quest to benchmark its customer

service delivery systems against international standards. To initiate the benchmarking process,

the Group established and implemented a robust Quality Management System in accordance

with the ISO 9001 standards. The purpose of the Quality Management System was to set,

implement and sustain the standard of delivering quality and efficient customer service in its

Front Office and Loan Delivery services. The effective execution of the Public Bank Group’s

Quality Management System has resulted in the Group upholding its ISO 9001 Standard

Certification for both the “Provision of Customer Service at the Front Office” and “Provision of

Customer Service in Loan Delivery” for 16 continuous years since 2000. The Group was also

acknowledged as the first ever local bank to receive an organization-wide ISO 9001 Standard

Certification for its customer service delivery at the front office as it was hallmarked into the

“Malaysia Book of Records” in 2001. This achievement of sustaining the quality standards and

certification throughout the years reflects a combined discipline of strict and timely annual

surveillance audits and vigorous in-depth re-assessment audits.

Inventory Management System

Inventory Management involves responsibilities for maintaining inventory, audit of parts,

supplies, materials, and equipment. It is more than knowing what products are in stock and in

what quantity. Inventory managers responsibility includes knowing what to stock, how to
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position and present each product, and how to replenish inventory. Forecasting product trends

and understanding current inventory management technology are also important.

By viewing cash as “inventory” moving through the retail bank supply chain, Public Bank

Group places significant focus on having the right amount of inventory at the right time. Excess

inventory results in added costs: carrying charges, absolution, disposition costs and opportunity

costs. Conversely, inventory shortages result in lost revenue. With proper supply chain

planning, the bank can achieve significant cost savings.

For retail banks, a branch or ATM should never run out of cash, as that can severely hamper

reputation; conversely, extra funds at an ATM could be invested elsewhere to earn revenue.

Accurately planning cash (and other physical currency) would provide retail banks with the

ability to reduce their working capital (cash inventory) and operating expenses (processing and

transportation costs) while still maintaining high service levels.

Below shows the demand planning of cash in Public Bank;

 Demand forecasting: Statistical forecasting to develop time phased cash depletions out

of branches and ATMs.

 Inventory planning: Multi-echelon inventory planning that leverages target customer

service levels to determine cash required at vaults, branches, and ATMs.

 Inventory replenishment: Economic order quantities to determine replenishment cycle

that minimizes transportation and carrying costs, with constraints on cylinder sizes.

 Supply planning: Constrained supply planning to create distribution plans from vaults to

branches and ATMs based on forecast and target cash levels, respecting storage and

transportation constraints.

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Supply Chain Management

Retail banks operate some of the largest, most complex, and most secure supply chains in the

world, transporting and storing cash across thousands of locations every day. The cost of

operating these supply chains extends to spending on all the equipment and services required to

process and distribute cash throughout the bank’s network–from the central bank through to

branches/ATMs and ultimately to customers. These costs are high and growing due to two

main drivers: the rising demand for cash and the increasing use of more complex technology

across the supply chain. Globally, cash in circulation has increased year after year. As the

demand for cash rises, retail banks are deploying more equipment and contracting for more

services to process and distribute cash to customers. Below is the Cash supply chain network;

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In addition to the growing use of equipment to manage the cash supply chain, the equipment

itself is becoming more complex and sophisticated. ATMs today provide more functionality

through more advanced operating systems, enhanced security features and additional account

services. Similarly, more advanced hardware features include cash recycling and optical

scanning to improve counting accuracy.

Public Bank Group have adopted sophisticated approaches to supply chain management across

four major stages of the supply chain:

1. Plan: Forecast demand and plan inventory and supply to maintain/improve service

levels while reducing inventory.

2. Source: Reduce supplier spend and rationalize the supplier base.

3. Make: Leverage Lean and Six Sigma approaches to reduce waste and excess in

operations.
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 4. Deliver: Optimize the delivery and routing network to reduce transportation and

logistics costs.

By using these approaches, Public Bank Group can enhance the bank cash supply chain

practices and consequently boost productivity.

Recommendation

In Operation Managements, Operations managers play an important role in ensuring the

smooth running and satisfactory transactions and banking transactions as well as services

provided by customers. To address the issues or problems encountered, the Bank asks

customers to do business virtually.

Digital platform is a way to deal with current issues or situations. Digital banking platforms

digitize bank operations, facilitating digital customer interactions and allowing banks to offer a

host of digital financial products. With a digital banking platform, banks can jumpstart and

ensure the transition from brick and mortar to a multichannel, digital bank. Digital banking

managed the digitization of multiple types of banking products, which may include commercial

accounts, retail accounts, back-office tasks, and more. Banks rely on digital banking platforms

to offer a wide range of financial products across multiple digital channels, meeting customers

where they live and work.

Digital banking is the digitalization of banking services in order to reduce risk, improve

efficiency and better serve customers. It allows customers to withdraw money, apply for loans,

make payments online or on their smartphone and more. Looking to the future of banking,

digital is no longer an option for firms who wish to survive - it is a must.

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The future is Banking Digital

While security and cost-efficiency are strong motivators for banks, the true value of

digitalization is what it can do for the customer. Digital banking makes life easier for

consumers, people are increasingly enjoying the simplicity of managing all their finances in

one place, setting up automatic payments or making deposits, anytime and anywhere, without

the need to queue in a bank.

Today, digital banks have become major disruptors of banking services and have transformed

the traditional way of banking and payments that have been practice for years. Naming the

most popular ones like digital, neo or challenger banks, everyone understands that they have

brought new ideas and elevated customer experience in this stage.

Driven by microservices infrastructure

Business expansion or continuous change are directly correlated with the microservice

infrastructure. Microservices are at the very center of the modern Core Banking platforms. It

helps to customize the technology or add new functionalities faster and easier than using

standard banking architecture. Such upgrades wouldn’t be possible with monolithic core

banking systems, but this setup is created in a way that solutions are independent of each other

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and support ongoing changes. As a result, it cuts down resources and costs of developments

and enables digital banks to be always up to date with current market trends. Basically, using

this architecture, banks can establish a small business that supports basic operations and expand

little by little adding new solutions and business partners.

Adapted to business logic

Flexibility in terms of solutions and additional integrations is just one side of the

system. When it comes to operators, the system should also be flexible enough to provide them

with new technologies, solutions, and integrations. For example, digital banks must be able to

adapt their business logics, as the industry is evolving fast across different dimensions, e.g.,

functionality, business and technologies.

Most business processes demand regular upgrades because of new business needs, regulations

and market trends. This is where flexibility, along with the workflow of how the business runs

processes are essential to make changes — fast and efficiently.

Another supportive functionality of the Digital Banking solution is the readiness for Open

banking. In the open banking world, plug-and-play financial products are mainstream, and

customers have the final word when they opt for a superior banking experience.

Conclusion

Public Bank had experienced in Banking and Services industry for more than 5 decades. Due to

Pandemic Covid 19,world face changing of economy transaction, Public Bank need to driven

by microservices insfratructure and adapted to business logic.Other than that Public Bank

Management team understand current situation through offering Targeted Repayment

Assisstance and Flood Relief Assistance Determent of Repayment /Payment.Public Bank .

Quality Management System Public Bank must follow ISO 9001 Standard Certification. Public

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Bank need to monitor their IT capacity such as Public Bank Apps and website up to date and

capable to continual provision of consistent and acceptable service level at a known and

controlled cost. Layout design also can increase flexibility, quality of working life, good

relationships with clients and create a good reputation of the Bank.

Video Presentation Link:

https://drive.google.com/file/d/154q9TDSTZ6e0tRWQ3rQUukN05rjFJ_Wf/view?usp=sharing

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NAME: LOH SOON CHING STUDENT ID: UFC180041
____________________________________________________________________________

Reflective Report

Introduction

The overall course has been conducted on the subject of operations management. This subject

is necessary for understanding regular operations in commercial sectors. Moreover,

understanding of this particular subject is necessary for conducting management and operations

in a commercial sector.

From the course, I have learned that operations management is basically the operation of

resource management with respect to the banking services or products. Further, I have learnt

that Operations Management is essential for all commercial outlets for customer satisfaction.

Before undergoing the course, I did not have a clear idea how to be a successful operations

manager. From the course, I learnt that, to be a successful operations manager, one needs to

enjoy his duties, have deep understanding of customer demands, banking operation such as

cash money handling, security and even lending process. Most importantly, I realize the

importance of objective setting as it would help me to determine whether the operation is well

managed. It can be also provided me opportunity to plan and configure the operation process to

stratify customer demand. The significant advantage would be identifying the weakness within

existing operation. Hence, I could propose possible strategy to overcome it before the operation

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failures affect productivity of the organization. Moreover, a good understanding of supply

chain management can help me to understand more deeply about here is source is from and

what are the chain of the supply will be for a product.

The most important lesson I have learnt from the course is that the most important part of

management is operations strategy. I had some detailed idea about the operations strategy,

which says, operations strategy is essential for any commercial sector for planning the course

of operations. Experienced personnel are needed to be appointed to produce a good operation

strategy. We, as a group, conducted the course together and helped each other for deep

understanding of the topics. We divided the topics between us according to our subjects of

interest. I undertook study on Operations Management and Operations Strategy. Through good

teamwork, we completed study of the course together and learnt each topic with great

understanding.

Suggestions

After completing this course, several suggestions can be provided regarding my part of the

topics.

i. Operations Management is essential for any commercial sector

ii. Operations Management should be carefully implemented by all commercial sectors for

proper operations especially banking sector, delivery of customer services such as

lending period.

iii. Operations Strategy is necessary for structuring the plans for operations management

iv. Every commercial sector should have Operation Strategy prepared for the success of

their commercial activities

Conclusion
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The whole course work has given me a lot of knowledge about operations management, most

of which was unknown to me previously. Now, I have a clear idea of the topic. In addition, due

to good teamwork with my classmates, I was able to learn more quickly and understand the

topics, which seemed difficult to me.

NAME: NOR AFIDAH MOHD@MUHAMMAD STUDENT ID: UFC180048

____________________________________________________________________________

Reflective Report

Acknowledgement

The highest appreciation is given to lecturer Mr. Ravichandran for mentoring, sharing

knowledge and educating me in Operations Management courses.

Although I roughly understand what is meant by operations management, but through the

knowledge imparted by Mr. Ravichandran I have learned and know the importance of

operations management in the work organization and how operations management affects and

plays a role in one's daily life and future.

I would like to thank Mr. Ravi for his efforts and the constraints of the current situation. All the

knowledge presented is very much appreciated and once again I thank you.

Operational Management

Operations management is the management of processes that transform inputs into goods and

services that add value for the customer. The goal of operations management is to maximize

efficiency while producing goods and services that effectively fulfil customer needs. Countless

operating decisions must be made that have both long- and short-term impacts on the
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organization’s ability to produce goods and services that provide added value to customers. If

the organization has made mostly good operating decisions in designing and executing its

transformation system to meet the needs of customers, its prospects for long-term survival are

greatly enhanced.

Operations is one of the three strategic functions of any organization. This means that it is a

vital part of accomplishing the organization’s strategy and ensuring its long-term survival. The

other two areas of strategic importance to the organization are marketing and finance. The

operations strategy should support the overall organization strategy.

Operational Management Learning

Through virtual learning for this Operations Management course, students are given an

understanding of what is meant by operational management basically in daily life, organization

and employment. Effective presentation with examples given, as well as notes and slides as

well as question and answer sessions provide many benefits and knowledge to make this course

easier to understand.

Operations is an essential part of running any business, and it’s worth noting that obtaining

skills in this area can make someone to be a better manager. Operations Management is the

function that turns an organization resources such as material and labor into product and

services. If someone works in manufacturing, understanding operations is important as this is

the areas of the business where a vast of majority of a company’s money is made or lost. For

those who working in service industries, it’s important to understand operations as it’s a key

differentiating or determining factor between companies in the same area.

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When thinking about banks and logistic companies the value proposition they offer consumers

is often based on functions provided by operations department. Banks perform various types of

transactions and activities to support their banking business. These transactions may include

making or accepting payments, trading, clearing and settlement of accounts, and custody.

Knowing the operational aspects of banking is very important for understanding the value chain

of the banking industry.

I am one of the bank employees, based on my working experience in branch operations unit,

the operations department at the branch other than performing transactions at the counter and

communicating with customers, the banking operations department is a back-end team

responsible for executing and settling transactions initiated by the front-end teams while

ensuring adherence to risk or regulatory guidelines.

The tasks performed in an operations role are totally dependent on which front or middle office

team you’re supporting, so it might make more sense to highlight some of the main operations

divisions individually and provide a brief desecration of what they do exactly. The common

thread between all of them is that operations teams exist to facilitate and execute transactions

while ensuring that everything remains above board and within regulatory and internal

guidelines.

Group Work

While in group assignments, students can unravel the issues or operational problems that arise

in an organization. and the actions taken to resolve the issue. In group assignments, each group

member is given the responsibility to study and relate the issues / problems identified with the

topics learned in this course.

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Our group has selected the banking industry and we found that the management of bank

operations especially branches face constraints in day-to-day operations when it is necessary to

comply with the procedures set by the National Security Council during the period of

movement control orders (MCO).

Future in Operations Management

After understood the objectives, principles and needs of management in daily life and

organization, I can imagine how this operational management can advance my career in the

organization as well as personal life. With the knowledge gained I can imagine myself to be a

successful executive and subsequently an operations manager.

i. Understanding operations will help become a good operation manager

Understanding the other part of a business will help me become a good

manager. As operations is necessary in order to run a business, a working

understanding of operations will help me do a better job.

ii. Operations management skills can be applied across all industries.

With the skills available in operation management it can apply those

skills in any field. In banking and finance, operation management skilled

are necessary in order to move large sums of money and construct

financial deals.

iii. Chances to work with new Technology

By using technology can help solve problems in Operation management.

Many companies and organization are creating new opportunities for

companies and consumers. Using new technology to bring power into

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 people’s homes and monitor the water supply are examples of how

technology is being used for operations management.

iv. Creating the end product

Operations management enables us to be directly involved in creating an

end product, Operations manager get to solve problems daily while

interacting with people from all around the world. Operation

management allows us to be directly involved in delivering the final

product to the consumer.

Conclusion

I would like to say that operations management is the knowledge and skills that must be

possessed or mastered by any organization and individual to form, improve, business

development and also in increasing productivity and competitiveness.

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NAME: TAN KOK LAM STUDENT ID: UFC180059
____________________________________________________________________________

Reflective Report

Operations Management is defined as “A set of activities that create goods and services

through the transformation of inputs into outputs.” Without knowing it, it is happening between

you and me on daily basis, regardless which position, and job title you are holding at, even as a

student. Take for example, during our group assignment activity, we segregate the work and

compile the information into a final assignment, there is operations management involved.

Before I starts my reflective report, I would like to express my deepest gratuity to Mr

Ravichandran Muniandy who has generously shared his knowledges and experiences to me. I

am truly benefitted with it, be it in my current employment or my future undertaking, with god

blessing when I can start off my own business in future.

I realized that I am been practicing operations management without realizes, as a branch

manager of Public Bank Berhad, I am managing the branch as if it is my own business, from

sourcing the business to administrate the operations to ensure the whole process is smooth and

satisfying customer need. However, it is still a shortfall if we cannot master the concept behind

the operations management. With the help of Mr Ravichandran, I can understand the concepts

of operations management includes layout of facilities or resources, key personnel, process

strategy, technology decision, location decision, determination of capacity, design of jobs,

activity scheduling, quality control, control and planning of inventories which all of these can

36 | P a g e
affect the profitability and effectiveness of an organization. For example, I am fully

understanding the layout design of a bank branch which is convenience to customer able to

accelerate the customer satisfaction level and as a branch manager, planning and supervising is

the key element to cost control.

Through this study, I also benefitted with how to run a business by considering

competitive advantage with four important elements which is quality, time, flexibility, and cost.

A success organization need to set up their competitive advantage against its competitors.

Taking our group assignment organization; Public Bank as example, quality of service and

serving time is uncompromised as spelled out in its customer services charter. Hence, quality

and speed are its competitive advantage which enable it to standout among its peers in the

industry. As at to date, Public Bank still practising this philosophy with its tagline “Excellence

is Our Commitment”. From the success story of Public Bank, I believed what been taught by

Mr Ravichandran in this subject is useful and benefit to me.

Operations management also involved in using advance technology to ensure effective

and efficiency productivity especially in current business environment. Technology is the trend

of doing business in the next decades, hence we shall evolve the way we administrate our

operations and business. Fintech is the next chapter of banking industry, therefore, as a branch

manager, I need to make use of this and be ready to adapt the new technology in managing the

branch. Public Bank is currently aggressively encouraging customers to convert the banking

experience to online platform. Hence, we can see bank is administrating the operations with the

same concept as we learned here.

By merely knowing the concept is worthless, we must apply the concept into our daily

work. Having successful complete this study, I shall demonstrate the knowledge and concept

into my current work as a branch manager in Public Bank Berhad. First, I will do the planning,

organizing, and supervising the branch operations to ensure high customer satisfaction level.

Besides, deploy the right person to right function also part of operations management, hence, I
37 | P a g e
will restudy the workforce in my office administration and realign the workforce if there is any

necessary. Secondly, I will measure my workforce productivity to maximise the output and

profit with limited resources. Lastly, I will design and readjust a longer business strategic from

time to time to ensure it is suitable to organization objective in particular situation especially

during this pandemic period.

Before I end this reflective report, I shall once again thanks to Mr Ravichandran to teach

me of these concepts of operations management to complete the ladder to pursuit my career to

the next level. I know that the topics covered in this course is tip of iceberg, but I find it is

especially useful and benefit to me, however I wish that I can explore more in future. Lastly, I

wish to emphasise that Operations Management is incredibly useful to everyone in their career

path, hence, never stop from learning new things as it will improve our life.

38 | P a g e
NAME: RIMA MALINDA BASRIL STUDENT ID:UFC180067
____________________________________________________________________________

Reflective Report

Before I starts my reflective report, I would like to express my deepest gratuity to Mr

Ravichandran Muniandy who has generously shared his knowledges and experiences to me. I

am truly benefitted with it. Mr. Ravichandran had taught me importance of good operation

management in an organization or company.Other than that good operation management also

can be use in our daily life such as follow plan and schedule created by household.

Operation Management are administration of business practices to create the highest level of

efficiency possible within an organization. Operations management is concerned with

converting materials and labor into goods and services as efficiently as possible.Operation

management hold an important function in business which is the operation management team

responsible for managing the process of creation of goods and services. It involves planning,

organizing ,coordinating and controlling all the reasources needed to produce a quality products

and services as output of the company.

I realised that I am been practising operations management without realizes, as a owner

of PT Melia Sinar Khatulistiwa , I am managing the small and medium enterprise bussiness ,

from sourcing the business to administrate the operations to ensure the whole process is smooth

and satisfying customer need. However, it is still a shortfall if we cannot master the concept

behind the operations management. With the help of Mr Ravichandran, I can understand the

concepts of operations management includes layout of facilities or resources, key personnel,

39 | P a g e
process strategy, technology decision, location decision, determination of capacity, design of

jobs, activity scheduling, quality control, control and planning of inventories which all of these

can affect the profitability and effectiveness of an organization. For example, I am fully

understanding the layout design of a company are important for to increase flexibility, quality

of working life, good relationhips with client and create a good reputation of the bank. What I

have learnt a great capacity management team would make the company improved in aspect of

performance and availability of IT services ,distinguish activity which are long term and

strategic from the ones which are day-to-day operational task and reduction problems and

incidents related to capacity performance .There three sub process of Capacity Management

business capacity management, service capacity management and component capacity

management.

What I have learnt from my group assignment study the operation management of

“Public Bank” overcome problem to maintain they will not loss income because of because of

pandemic Covid-19, Public Bank had shown their effort and understand current situation

through set up a new “Targeted Repayment Assistance” and “Flood Relief Assistance of

Repayment or Payment”.This effort had shown Publc Bank capacity management team are

faster in making decision and create a new strategic payment plan,it is an example, quality of

service and serving time is uncompromised as spelled out in its customer services charter.

Hence, quality and speed are its competitive advantage which enable it to standout among its

peers in the industry. As at to date, Public Bank still practising this philosophy with its tagline

“Excellence is Our Commitment”. Operations management also involved in using advance

technology to ensure effective and efficiency productivity especially in current business

environment. Technology is the trend of doing business in the next decades, hence we shall

evolve the way we administrate our operations and business. Fintech is the next chapter of

banking industry, every business need to adapt the new technology to make sure they are not

lost in backwards style of bussiness. Public Bank is currently aggressively encouraging

40 | P a g e
customers to convert the banking experience to online platform. Hence, we can see bank is

administrating the operations with the same concept as we learned here.

By merely knowing the concept is worthless, we can apply operation management

concept into our daily work. Having successful complete this study, I shall demonstrate the

knowledge and concept into my current work as owner of PT Melia Sinar Khatulistwa. First, I

will do the planning, organizing, and supervising the company to ensure high customer

satisfaction level. Besides, deploy the right person to right function also part of operations

management, hence, I will restudy the workforce in my office administration and realign the

workforce if there is any necessary. Secondly, I will measure my workforce productivity to

maximise the output and profit with limited resources. Lastly, I will design and readjust a

longer business strategic from time to time to ensure it is suitable to organization objective in

particular situation especially during this pandemic period.

I shall once again thanks to Mr Ravichandran to teach me of these concepts of

operations management to complete the ladder to pursuit my career to the next level. I know

that the topics covered in this course is tip of iceberg, but I find it is especially useful and

benefit to me, however I wish that I can explore more in future. Lastly, I wish to emphasise that

Operations Management is incredibly useful to everyone in their career path, hence, never stop

from learning new things as it will improve our life.

41 | P a g e
NAME: NOORAIN BINTI MOHD SAID STUDENT ID:UFC180047
____________________________________________________________________________

Reflective Report

Operation management is important in all types of organization regardless of the size and

nature of business. As an operational manager, I am holding a major role in managing

available resources within the organization such as raw materials, staffs, and machineries. I

am responsible in keeping track of the inventory system to ensure there are sufficient input

resources to be transformed during the production stage. In order to do so, I have to establish

a wide and efficient supplier network to gain greater access and control towards the input

materials. It is also my job to ensure the supplying parts are in consistent and high quality to

reduce any uncertainty in the production process and variation in the quality of output.

In term of human resource and facilities, I am entitled to the tasks in determining the labor

needs, hiring suitable candidates to handle the operations, monitoring the performance of

employees and machineries as well as developing efficient operation technology. Above tasks

are long-term oriented as the business environment is changing rapidly along with

sophisticated technology. Therefore, it is a vital role for me to identify the industry trend from

time to time to seek for opportunities to improve the existing production line-up.

Another aspect that should be emphasized is cost reduction. I am aware that the operations

managers play a key role in controlling the budget and keeping the costs low to achieve

financial stability within the organization. One of the ways is to manage the supply chain in an

42 | P a g e
efficient and systematic manner to minimize operation costs. Moreover, a good

understanding of supply and demand can help me in forecasting the optimal level of

production which would lead to high utilization of staff and lesser wastage of raw materials.

Operations managers are also advised to identify and eliminate waste practices within the

operation to improve efficiency. Otherwise, it would incur extra costs and lead to a less

competitive pricing strategy.

43 | P a g e
Most importantly, I realize the importance of objective setting as it would help me to

determine whether the operations are well managed. It can also provide me the opportunity

to plan and configure the operation processes to satisfy the customer demand. The significant

advantage would be identifying the weaknesses within existing operations. Hence, I could

propose possible strategy to overcome it before the operation failures affect the productivity

in other departments.

In conclusion, an effective operation manager should have proper planning, efficient

management, and problem-solving skills to successfully achieve the operation performance

objectives.

Before I end this reflective report, the highest appreciation is given to lecturer Mr.

Ravichandran who introduced us to the importance of operations management in the work

organization and how operations management affects and plays a role in one's daily life and

future. The whole course work has given me a lot of knowledge about operations

management, most of which was unknown to me previously. Now, I have a clear idea of the

topic. In addition, due to good teamwork with my classmates, I was able to learn more quickly

and understand the topics, which seemed difficult to me.

44 | P a g e