LEAN SIX SIGMA IN BANKING SECTOR: A CASE STUDY FOR

THE REDUCTION OF PAPER CONSUMPTION OF AN IRAQI

BANK BY APPLYING THE PRINCIPLES OF LEAN SIX SIGMA
CONCEPT

Amenah AL-TEKREETI

JANUARY 2022
LEAN SIX SIGMA IN BANKING SECTOR: A CASE STUDY FOR
THE REDUCTION OF PAPER CONSUMPTION OF AN IRAQI
BANK BY APPLYING THE PRINCIPLES OF LEAN SIX SIGMA
CONCEPT

A THESIS SUBMITTED TO THE

GRADUATE SCHOOL
OF
BAHCESEHIR UNIVERSITY

BY

AMENAH AL-TEKREETI

IN PARTIAL FULFILMENT OF THE REQUIREMENTS

FOR
THE DEGREE OF MASTER OF INDUSTRIAL ENGINEERING
DEPARTMENT
IN THE DEPARTMENT OF ENGINEERING

JANUARY 2022
 T.C.
BAHÇEŞEHİR UNIVERSITY
GRADUATE SCHOOL
...../....../.....

MASTER THESIS APPROVAL FORM

Program Name:

Student's Name and

Surname:

Name of The Thesis:

Thesis Defense Date

This thesis has been approved by the Graduate School which has fulfilled the
necessary conditions as Master thesis.

Prof. Dr. Ahmet ÖNCÜ

Institute Director

This thesis was read by us, quality and content as a Master's thesis has been
seen and accepted as sufficient.

Title, Name Signature

Thesis Advisor:

2. Member:

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I hereby declare that all information in this document has been obtained and
presented in accordance with academic rules and ethical conduct. I also declare
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iii
iv
 ABSTRACT

LEAN SIX SIGMA IN BANKING SECTOR: A CASE STUDY FOR THE

REDUCTION OF PAPER CONSUMPTION OF AN IRAQI BANK BY
APPLYING THE PRINCIPLES OF LEAN SIX SIGMA CONCEPT

Al-tekreeti, Amenah
Industrial Engineering Department
Thesis Supervisor: Prof. Dr. Ahmet Beşkese

January 2022, 44 pages

Paper consumption has increased more than threefold in recent decades. The
increased use of paper poses serious social and economic challenges. On the one
hand, the use of paper and its unchecked waste lead to a 10% fall in the overall
profitability of banks, and on the second hand, paper consumption is a major
contributor to the climate change crisis. Therefore, this paper employs a lean six
sigma strategy that helps figure out the inherent flaws, discrepancies, and loopholes
in the system and possible factors that can increase productivity. This research paper
uses a mixed approach (qualitative and quantitative data). A survey was conducted
that included one bank based in Iraq. The survey finds that paper consumption and
its waste affect the overall profitability of the bank. Moreover, about 40% of the total
paper is wasted in different operations. Applying the Six Sigma strategy reduces
paper consumption from 17498 pages per week to 5512, which is a 70% reduction
and a 10% increase in profitability. The study proposes an electronic method to
replace the pulp-made paper in banks

Keywords: Bank Lean six sigma, Paper consumption, Reduction of cost, Minitab

v
 ÖZ

BANKACILIK SEKTÖRÜNDE YALIN ALTI SIGMA: BİR IRAK BANKASININ

YALIN ALTI SIGMA İLKELERİNİN UYGULANARAK KAĞIT TÜKETİMİNİN
AZALTILMASINA İLİŞKİN BİR ÖRNEK İNCELEME

Al-tekreeti, Amenah
Endüstri Mühendisliği Bölümü
Tez Danışmanı: Prof. Dr. Ahmet Beşkese

Ocak 2022, 44 sayfa

Kağıt tüketimi son yıllarda üç kattan fazla arttı. Artan kağıt kullanımı ciddi
sosyal ve ekonomik zorluklar doğurmaktadır. Bir yandan kağıt kullanımı ve
kontrolsüz israfı bankaların genel kârlılıklarında %10'luk bir düşüşe yol açarken,
diğer yandan kağıt tüketimi iklim değişikliği krizine önemli bir katkı sağlıyor. Bu
nedenle, bu makale, sistemdeki doğal kusurları, tutarsızlıkları ve boşlukları ve
üretkenliği artırabilecek olası faktörleri anlamaya yardımcı olan bir yalın altı sigma
stratejisi kullanır. Bu araştırma makalesinde karma bir yaklaşım (nitel ve nicel
veriler) kullanılmaktadır. Irak merkezli bir bankanın katıldığı bir anket yapıldı.
Anket, kağıt tüketiminin ve atıklarının bankanın genel karlılığını etkilediğini ortaya
koyuyor. Ayrıca, toplam kağıdın yaklaşık %40'ı farklı işlemlerde israf edilmektedir.
Altı Sigma stratejisinin uygulanması, kağıt tüketimini haftada 17498 sayfadan
5512'ye düşürür, bu da %70'lik bir azalma ve kârlılıkta %10'luk bir artış anlamına
gelir. Çalışma, bankalarda kağıt hamurundan üretilen kağıdın yerini alacak
elektronik bir yöntem önermektedir.

Anahtar kelimeler: Banka Yalın altı sigma, Kağıt tüketimi, Maliyetin düşürülmesi,
Minitab.

vi
 DEDICATE

I dedicate my dissertation to my parents who supported me in this journey I’m

thankful to have them in my life, to my mom Israa and my brother Mohammad without
them I wouldn’t be able to gain this degree, also I dedicate this dissertation to my
friends who accompanied me in this journey.

vii
 ACKNOWLEDGMENTS

I wish to express my deepest gratitude to my supervisor Prof. Dr. Ahmet

BESKESE for his guidance, advice, criticism, encouragements and insight
throughout the research.

I would also like to thank my parents, Hasan ÇELİK and Gamze ÇELİK, for
their great support throughout her life. Without their understanding, and continuous
support, I could have never been able to aspire for this level of education and
complete this study.

viii
 TABLE OF CONTENTS

ABSTRACT ............................................................................................................ iv
ÖZ ............................................................................................................................ v
DEDICATE ............................................................................................................. vi
ACKNOWLEDGEMENTS ....................................................................................vii
TABLE OF CONTENTS ........................................................................................vii
LIST OF TABLES .................................................................................................... x
LIST OF FIGURES ................................................................................................. xi
CHAPTER 1: INTRODUCTION .............................................................................. 1
1.1 A Brief About The Bank ................................................................................. 1
1.2 Overview ........................................................................................................ 2
1.3 Research Problem............................................................................................ 3
1.4 Statement of Purpose ....................................................................................... 3
1.5 Research Question ........................................................................................... 4
1.6 Significance of Study ...................................................................................... 4
CHAPTER 2: LITERATURE REVIEW ................................................................... 6
CHAPTER 3: RESEARCH FRAMEWORK AND METHODOLOGY ..................... 9
3.1 Research Framework ....................................................................................... 9
3.2 Research Design ............................................................................................ 10
3.2.1 Sampling method .................................................................................. 10
3.2.2 Secondary research source .................................................................... 11
CHAPTER 4: ANALYSIS ...................................................................................... 12
4.1 Application of Lean Six Sigma in Banks ....................................................... 12
4.1.1 Define the issue .................................................................................... 12
4.1.2 Measuring the current performance ....................................................... 14
4.1.3 Analyzing the data ................................................................................ 18
4.1.4 Improving the process........................................................................... 22
4.1.5 Controlling the improvement ................................................................ 27
4.1.6 E-paper, a great substitute for pulp paper .............................................. 29
4.1.7 Results .................................................................................................. 30

ix
CHAPTER 5: CONCLUSION ................................................................................ 33
5.1 Limitation of The Study ................................................................................ 34
5.2 Recommendation for Future Researchers....................................................... 34
REFERENCES ....................................................................................................... 35

x
 LIST OF TABLES

TABLES
Table 1 Project Charter Table Demonstrate the Resources, Restrictions, Scope,

and Stakeholders of the Project ................................................................ 13

Table 2 The Baseline Summary of Measurement Phase .......................................... 17

Table 3 Analysis of Variance .................................................................................. 18

Table 4 Statics of the Process After Improvement ................................................... 26

Table 5 Control Phase Before and After Summary .................................................. 28

xi
 LIST OF FIGURES

FIGURES
Figure 1 Six Sigma Cycle .........................................................................................7
Figure 2 CTQ Tree................................................................................................ 144
Figure 3 I-MR Chart Shows the Stability of the Given Data for All Departments .... 15
Figure 4 Process Capability Chart ........................................................................... 16
Figure 5 Interval Plot of The Top Departments ....................................................... 19
Figure 6 Residual Plots for Accounting & Reporting Dep., Domestic & Clearing
Dep., Loan & Recovery Dep., Pawning Dep., Cashier, Front Office ......... 19
Figure 7 Pareto Chart Measuring the Defects of All Departments ............................ 20
Figure 8 Fish-Bone Diagram ................................................................................... 21
Figure 9 Capability Histogram ................................................................................ 25
Figure 10 Boxplot Chart.......................................................................................... 26
Figure 11 I-MR Chart Before and After for All Departments ..................................27

xii
 CHAPTER 1

INTRODUCTION

This paper seeks to examine various possibilities to decrease paper

consumption by employing the lean six sigma strategy. This strategy is directed to
optimize the quality of working and subsequently minimize waste. William Smith of
Motorola initiated this method about 30 years ago. Six sigma extends other quality
initiatives such as Deming's statistical quality control and total quality management
(Kumar, 2008). The word "lean" goes to suggest that it is supposed to reduce waste.
Six sigma refers to various strategies that reduce waste by considering different
approaches to address and redress the bottlenecks in the system. The main objective
behind this process is to make the system more efficient, faster, effective, and hassle-
free. It is since today's business is customer friendly. The satisfaction of consumers
defines the success of companies. The cutthroat competition has further made
businesses customer-centered (Aboelmaged, 2010). Therefore, lean six sigma
improves the system's efficiency by removing loopholes and ultimately offering
customer satisfaction. The statistical analysis helps to reduce customers' bad
experiences. The benefits of lean six sigma include customer satisfaction, increased
revenue, decreased cost, improved efficiency, and improved profitability
(Aboelmaged, 2010). This paper employs primary as well as secondary research data
for the research analysis. It means a mixed approach (qualitative and quantitative data)
is used. The use of both is befitting because of the nature of the topic and the lack of
literature available on the given topic. A survey of a bank based in Iraq showed that
paper consumption and its waste affect the overall profitability of the bank. The
findings of the quantitative data were substantiated through peer-reviewed articles and
journals on the given topic.

1.1 A Brief About The Bank

Data collecting was made in one of the well-known banks in Iraq founded in
2016 by a group of famous businessmen. today the net capital of the bank is around

1
250 billion Iraqi dinars with 10 branches distributed in many provinces around Iraq
and a total of 730 employees.
1.2 Overview

The increased paper consumption in offices remains the single most daunting
challenge today. Paper remains relevant from the deposit and withdrawal slips to the
documentation of legal matters and record keeping. In fact, on each step in traditional
banking, paper plays a key role (Gunjan & Desai, 2016).
Even to stand in cue, many banks necessitate using a paper slip to take due to
take service. The clients also feel more comfortable doing paperwork rather than
relying on digital receipts and bills. Due to this traditional banking mindset and
mechanism, the use of paper in banks has continuously been rising, which is a nerve-
wracking situation (Ali, 2016).
The information technology revolution has brought a tremendous
transformation in the banking sector as well. These financial institutions have become
more equipped to expand their service and work. Due to this, the use of paper sheets
has increased manifold in the last three decades (Gunjan & Desai, 2016). For instance,
according to Heather Sarantis (2002), the number of printers in banking increased 600
percent between 1988 and 1993. This shows the exponential growth of paper in banks.
A report of theFood and Agricultural Organization in 2000 showed that from 1970 to
2000, the consumption of paper increased threefold in general (Sarantis, 2002).
The use was exceptionally high in the business and finance sector, such as
banks. The report predicted a twofold increase in the next decade, which proved correct
(Sarantis, 2002). Besides, there are different types of paper. Paper commonly refers to
a thin material made of cellulose fibers produced chemically or mechanically. It is
generally derived from wood, rags, grasses, and other materials. In today's world,
paper is manufactured chiefly chemically by separating lignin from cellulose fibers
through the chemical pulping process (Martin, 2004).
To dissolve the separated lignin, a liquor is used, only to be washed from
cellulose afterward. The sulfite process, Kraft process, and soda pulping are essential
chemical methods used for paper making. Mechanically, thermochemical pulp and
groundwood pulp are some of the most used ways. Paper is an all-important thing in
banking because of utility such as deposit and withdrawal slips, queue slips, and data
documentation (Martin, 2004). Considering the increased use of paper, a huge amount

2
of paper waste is produced each year. In the United States alone, 40% of the total waste
is related to paper or its use (EPA, 2006). It means the paper is the most critical
contributor to waste in the country. On the other hand, the use of paper is related to
deforestation because the tree is the key source of paper (Martin, 2004). It means the
excessive use of paper has led to deforestation, a forerunner of climate change.
Therefore, a debate has become more pervasive in the international community that
the use of paper should be reduced to the possible.

1.3 Research Problem

The overconsumption of paper in offices is becoming a heavy burden on most

businesses’ budgets. A bank is supposed to bear the brunt of increased expenses of
paper. According to Deloitte (2012), by streamlining the process and adding
technology to eliminate paper from the process, operating expenses in the processing
divisions can be reduced by as much as 25 percent. Records management associated
costs can be reduced by 60 percent to 70 percent (Deloitte, 2012). It means a huge
economic dividend can be achieved by reducing the use of paper in banks. Besides,
spending a high amount on providing paper for daily tasks is a Herculean task.
Different issues can take place from the printing and exportation of the document that
can hamper or disturb the working of a bank (Deloitte, 2012). Similarly, storing
important data on paper is prone to various challenges such as burning files,
misplacing, retrieving data. Besides, not disposing of papers is the new target for the
service industry nowadays. Further, the use of paper is not only contributing to the
ever-increasing threat of deforestation but is also leading to worsening climate change
(Shah et al., 2019). These are dire challenges caused by the overconsumption of paper
in different offices such as banks.

1.4 Statement of Purpose

There are many banking processes in the traditional banking system. All
processes use papers and printing of papers. For instance, to serve the customers
according to the patterns (first come, first serve), they are supposed to take a slip made
of paper and wait for their queue. Besides, they need to submit a paper if they want to
withdraw or deposit some money in the bank (Shah et al., 2019). On the other hand,
the bank will keep the record of the customers not only electronically but also manually

3
in most cases. It means entertaining new customers, existing customer queries, and
performing routine banking activities; paper is a fundamental thing. Notably, the office
category is the third-largest category of paper waste. Typically, in an office, from 50%
to 70% of the total waste comprises paper. According to a report of theEnvironmental
Protection Agency (1995), in banking, the waste of paper per employee a day is 2.39,
which is the highest as compared to the other forms of office such as government
offices or general enterprises. It means the bank is the major contributor to paper waste.
Therefore, there is huge potential to minimize the use of papers in banking processes
by adopting more efficient and innovative alternatives (Environmental Protection
Agency, 1995). This will help significant savings to banks and boost the soft image of
banks in their contribution to environmental sustainability.

1.5 Research Question

How paper consumption can be reduced using the lean six sigma strategy?

1.6 Significance of Study

This paper is exceedingly crucial in terms of a sustainable approach in the

banking sector. Despite the hazards of overconsumption of writing, no substantive
efforts have been made to reduce its use. The use of paper has constantly been
increasing, which is a daunting challenge. The use of paper has many downsides:
environmental as well as institutional (Gunjan & Desai, 2016).
A recent report shows that paper usage in banking has increased 126% in the
last twenty years. Therefore, this paper is extremely useful in addressing the challenges
posed by the overconsumption of paper (Shah et al., 2018). Moreover, paper
production is a critical factor behind the increased deforestation. For instance, more
than 24.29 trees are cut for the production of 1-ton A4 paper. Moreover, 0.08 big trucks
of garbage are produced meanwhile (Shah et al., 2018).
Interestingly, despite the broad scope, limited literature exists on paper use in
banks and efforts to make the system more sustainable and customer-friendly, and
environment-friendly (Shah et al., 2018). Similarly, this paper highlights and brings
forth the issue of paper waste in the bank. The abovementioned report also reveals that
46% of the total paper ends up in the bins. It means nearly 50% of the complete form
goes wasted (Suardi, Lina R., et al. 2018).

4
 Therefore, this paper gives a clarion call to agencies such as the United Nations
and others working for sustainable development. Moreover, banks also can learn a lot
from this paper. They can reduce the amount of paper produced and used in the bank
that ultimately leading to better customer service as well as the profitability of the bank
(Suardi, Lina R., et al. 2018).

5
 CHAPTER 2

LITRETURE REVIEW

A report of the Environmental Protection Agency (1995) suggests that in

banking, the waste of paper per employee a day is 2.39, which is the highest compared
to the other forms of office such as government offices or public enterprises. It suggests
paper consumption in banking is not only an economically disadvantaging thing, but
it also has harmful effects on climate change (EPA, 1995).
Photocopy machines, printers, and lasers also waste many pages, which shows
the inherent flaws in paper-based banking. The operators of the engines are not always
experts, which makes them hastily start printing without checking the setting and
pushing the right buttons. Two-sided copies often are flawed because it requires
excellent deftness (EPA, 1995).
The same report shows that experts can reduce about 15% of the total paper
waste in banks. But in reality, hardly all banks hire experts, especially in Africa, Asia,
and Latin America (EPA, 1995). Heather Sarantis (2002), in "Business Guide to Paper
Reduction," explores various aspects of paper consumption in business sectors. He
believes paper is a good enough medium because it has many advantages and
disadvantages. Therefore, he thinks there are vital points why paper use should be
reduced in places such as banks. Firstly, there is a daunting issue of storage space. To
store a piece of information is always costly (Sarantis, 2002).
It looks especially relevant and pronounced for manuscripts that are of utmost
importance for the bank. Figure 1 shows the phases of lean six sigma.

6
 Figure 1: Six Sigma Cycle.

On the other hand, six sigma was developed by Motorola in the early 1980s
that refers to statistical measures of defects in a system. It reduces defect rate to as low
as 3.4 defects per one million opportunities or six sigma. For instance, out of 300,000
tasks performed, instead of having around 3000 discrepancies, there will be one
discrepancy performing under six Sigma (Pepper & Spedding, 2008).
Similarly, if television stations work at the accuracy of 99%, in normal
circumstances, there would be roughly 1.68 hours of interrupted telecast; under the
six-sigma system, the dead air time will be reduced to merely 1.8 seconds (Pepper &
Spedding, 2008). Vendrame et al. (2017) give details of different steps involved in
applying lean six Sigma, similar to the findings of Saja et al (2015).
The first step consists of defining the project, including the scope, validation,
and limitations. In general, the customers' needs are taken into consideration to make
sure the system offers 100% customer satisfaction. The process also involves forming
a team responsible for the project (Vendrameetal., 2017). The second step is to
measure the scale of work required to assure quality-assured service. The single most
crucial point is to figure out the problems, determine the problem's focus, collect data

7
from different angles and perspectives, and scrutinize the data. It is to make sure the
data is reliable and to the point (Saja et al., 2015). Another central area is to establish
goals and see the available resources. The third process is to analyze is the most crucial
step where the underlying factors behind the discrepancies are studied at length. The
focus is laid on problem-solving and leaving no gaps in the system (Vendrame et al.,
2017).
The thing that makes lean six Sigma highly accurate is the scientific basis of
the analysis involving empirical evidence and fine-tuned investigations. The fourth
step relates to practically implementing the explored discrepancies and loopholes in
the system. A list of suggestions is proposed based on the analysis. The last step
involves controlling the whole system in the long run. It means the scope of the long-
term goal is maintained. Moreover, the successes are measured, and failures are again
studied to make the system immaculate and hassle-free (Vendrameetal., 2017).

8
 CHAPTER 3

RESEARCH FRAMEWORK AND METHODOLOGY

Research framework and methodology are the structures of any research

paper. The research framework outlines the direction of the research and the means
to accomplish the goals. It also includes the use of a particular theory or model to
better explain the topic and its various aspects. A theory or model also defines the
limitation of research or gives the frame for it. Moreover, the use of primary research
data (quantitative data) or secondary research data (qualitative data) also falls within
the ambit of research methodology. For instance, some paper necessarily requires the
use of aquantitative approach, but others do not need its use. Some topics especially
those the subjective ones can be best dealt with using qualitative research data. Some
papers, such as this one, require the use of both primary and secondary research data
(qualitative as well as quantitative). This chapter compromises four main points:
research framework, research design, data collection process, and research sources.
`

3.1 Research Framework

Research framework refers to the use of a particular theory or model to better

understand the topic and to present a workable solution. This paper employs a lean
six sigma strategy to reduce paper consumption in the banking sector (Pepper &
Spedding, 2010).
Lean six sigma is a combination of two strategies: lean (developed by Toyota)
and six sigma (developed by Motorola). Lean six sigma is an effective way to reduce
extra burdens and expose and increase profitability (Saja et al., 2015).
Lean was initially used by Toyota to reduce vulnerabilities and flaws in the
system to improve customer service as well as the overall profitability of the
company. Apart from figuring out the discrepancies in the system, this model was
applied to reduce expenses to increase profitability. Using this strategy, Toyota
increased profit by more than 23%. Later, this model was successfully applied by the

9
other companies as well (Gunjan & Desai, 2016). Besides, the six-sigma strategy
was developed by Motorola in the early 1980s to address the flaws statistically and
objectively in the system. The focus is to reduce the defect rate to as low as 3.4 per
million opportunities or six sigma. In other words, in normal circumstances, there
will be around 3000 discrepancies if 300,000 (Gunjan & Desai, 2016). But under six
sigma, there will be only 1 discrepancy, if one million tasks are performed. The
model seeks to make the system more effective and efficient by removing hindrances
and defects. The model is especially relevant and pronounced in the corporate sector
such as finance, marketing, business, banking, and others. The lean six sigma
comprises six main steps: define, measure, analyze, improve and control (Gunjan &
Desai, 2016). This paper also follows the same pattern and uses the 6-step model of
lean six sigma.

3.2 Research Design

The research design refers to the approach towards the research: quantitative
research data or qualitative research data. This research paper uses a mixed approach
that includes both primary and secondary research data. Primary data includes a
survey from one Iraq-based bank. The single most reason to include primary data
research is to better understand the problem of paper consumption and different ways
of wasting paper. The key rationale behind using one bank is to make focus on ways
and strategies to reduce paper consumption by using the six-sigma model. The paper
does not seek to include a huge database about paper waste, but it intends to reduce
paper consumption and find a better substitute. The use of surgery as primary
research data looks especially relevant, knowing there is a shortage of data related to
paper consumption in banking or another corporate sector. Limited literature is
available that may fully discuss the topic or give clear points on the socio-economic
harms of paper. Therefore, it is pertinent to use both primary and secondary data in
this research paper.

3.2.1 Sampling method. The research paper employs data from one Iraq-based
bank to find the scale of paper consumption and different forms of paper waste. The
data was collected by observation during a one-on-one meeting with people in charge

10
within the corporation .an interview with the staff was held and the following questions
were asked for questionnaire for data collecting:

i. How much paper is lost, wasted, or become redundant each week

during the year?
ii. How paper consumption can be reduced in banks?
iii. Will the revenue of the bank will be affected by the reduction?
iv. Has the bank made any planning to go green shortly?

3.2.2 Secondary research source. The secondary research (qualitative

research data) consists of data from the last 26 years on the use of paper in the banking
sector and various harms involved in paper consumption. It chronologically moves
from 1995 to 2021 on the evolution of paper in banking. Moreover, the sources take
into consideration various aspects of paper use such as social, economic,
environmental, and fiscal. For instance, reducing the use of paper can drastically
reduce expenses and ultimately increase overall productivity and profitability. Besides,
reducing paper consumption is also environmentally friendly. It means the literature
reviews talk about the various reasons why the paper is not a good idea in the banking
sector. Afterward, the paper explores the origin and development of lean six sigma and
its role in minimizing expenses involved in a task. Notably, the research paper uses
only books, peer-reviewed articles, and journals. It means no weak or informal sources
have been used in the research that gives credibility to findings. Further, the research
papers are not only Americans or Europeans (as in many cases). Journals from Asia,
Africa, Europe, and America are used to give the point of academicians from all over
the world. Moreover, there are some relevant reports presented by formal forums such
as the United States Protection Agency. Hence, only high-quality references are used
in the (qualitative) secondary research data.

11
 CHAPTER 4

ANALYSIS

4.1 Application of Lean Six Sigma in Banks

Lean Six Sigma strategy can be used to reduce the use of paper in banks. Lean
means reducing expenses and finding ways to improve profitability by reducing
discrepancies and loopholes in the system. Six sigma is a complete Data-driven
approach project, and its tool lean is only for removing the wastage the following
chapter will apply the five stages of lean six sigma DMAIC using the data collected.

4.1.1 Define the issue. The first important stage in the application of six sigma
is to define the problem. There are many banking processes. All processes use papers
and printing of papers to serve new customers, existing customer queries, and perform
routine banking activities. There is huge potential to minimize the use of papers in
banking processes by adopting more efficient and innovative alternatives. This will
help significant savings to banks and boost the soft image of banks in their contribution
to environmental sustainability. As earlier mentioned, the excessive use of paper
consumption in banks is a huge expense on the exchequer. In this phase, a project
charter has been established to present better service for customers, and eventually, the
process flow would be faster. The following Table 1 is showing in detail what’s
expected to be accomplished taking into concern the perspective of the organization.

12
Table 1
Project Charter Table Demonstrate the Resources, Restrictions, Scope, and
Stakeholders of the Project
Name of project Downsizing paper consumption in bank sector using lean six sigma
methodology
Project sponsor XYZ Project Team Project Manager, ABA
st
Date of project 1 , August End of project 1st,February 2021
start 2020
Background There are many banking processes. All processes use papers and
printing of papers to entertain new customers, existing customer
queries, and perform routine banking activities. There is huge
potential to minimize the use of papers in banking processes by
adopting more efficient and innovative alternatives. This will help
significant savings to banks and boost the soft image of banks in
their contribution to environmental sustainability.
Business case To decrease paper consumption by 70%. Direct strategic impact on
cost-saving would be worth 10% savings minimum.
Indirect benefits  New marketing opportunities due to digitalization Enhanced
Data security & access
 Environmental Sustainability, Process Automation
 Enhanced customer satisfaction Optimization of organizational
performance.
Project Scope Internal & external processes i.e., Sales, accounts, loans, services,
insurance
Project Statement It is stated that project team, project manager, and sponsor are all
agreed and committed to achieving the set target of paper use
reduction by 70% in banks.
Timeline: 3-months
Covid19: Work from home
Key Constraints
Resources: 3rd party software & digital infrastructure
Budgets: 10000$ USD Investment required
Key Stakeholders Banks, Investors, Customers, Employees, Regulators, Suppliers,
Sponsors
Key Customers Banks internal & external process users, customers, regulators, IT
professionals, HRD

To set the requirements of the business in this project a critical to the quality
tree (CTQ) is founded also taking action to get to customer’s satisfaction by translating
the needs so it would be easier to be measure and evaluate by managers at work. (See
Figure 2).

13
 Figure 2. CTQ Tree.

4.1.2 Measuring the current performance. Applying the Six Sigma strategy,
nearly 70% of the total paper consumption in banks can be reduced. The use of paper
can be reduced in many different areas such as Account Opening, Cash Deposits, Loan
Applications, Account statements, Insurance Claims, Cash withdrawals, Service
Requests, Deposit forms, LC Applications Investment applications, Letters, Transfer
instruments, Closure Requests, and others. Instead of paper, the electronic method can
be used for such purposes. It means a digital receipt should be used in place of a paper
receipt. Likewise, paper documents can be supplanted by e-documents. E-customer
signatures can be used for verification. Digital documents can be used for other tasks
such as insurance claims, loan applications, account opening, and closing. An E-
confirmation service can be introduced instead of giving a paper-based account
statement. This digital technology can be a landmark achievement because of the
potential benefits that it offers. For example, digital technologies will reduce rush in
banks because people would be able to perform all the tasks online in an easy-to-
understand online procedure. This transformation will give a quality-assured service
to customers that are key to surviving or thriving in today's ever more competitive and
updated banking sector. Moreover, this new technology will be user-friendly because
they will not be required to come to banks for one signature. They will be able to do
such minor tasks at home or office. The collected data from the source is in the form

14
of “A4” paper which is considered as a measuring unit due to this reason the data is
considered continuous. In the measuring phase, Minitab software has been used to
observe the current performance, and because the data is continuous and not collected
in subgroups I-MR chart was utilized, and the following results are shown up in Figure
3.

I-MR Chart of Total paper consumption

30000
UCL=28806
Individual Value

20000 _
X=17498

10000

LCL=6190
Wk 01 Wk 06 Wk 11 Wk 16 Wk 21 Wk 26 Wk 31 Wk 36 Wk 41 Wk 46 Wk 51
Week

15000
UCL=13892
Moving Range

10000

5000 __
MR=4252

0 LCL=0
Wk 01 Wk 06 Wk 11 Wk 16 Wk 21 Wk 26 Wk 31 Wk 36 Wk 41 Wk 46 Wk 51
Week

Figure 3. I-MR Chart Shows the Stability of the Given Data for All Departments.

Figure 3 represents the measurement of stability for the data gathered for one
year and according to the reading of the chart, it clearly states that the process is stable
and in control since the variation is between the upper and lower control limit
(consistent). On the other hand, to test whether the in-control process meets the
specification limits a process capability test was performed for this specific reason and
the upcoming chart was concluded shown in Figure 4.

15
 Figure 4. Process Capability Chart.

According to Figure 4 the process capability (Cpk) is a negative value (-1.11)

since the measurement of the data is outside the Upper specification limit (USL) and
lower specification limit (LSL) that’s why the process needs to be fixed, shortly the
process is stable but incapable of delivering the business expectations where the
current state of paper consumption is 2398 and it needs to be reduced by 70% so the
target is 719.It goes the same way for the rest of the departments of the bank where the
same procedure has been performed with differences in results whether it is stable or
not. The following table (Table 2) carries the results of measuring the data for all
departments involved.

16
Table 2
The Baseline Summary of Measurement Phase

Department Average Number of Target Process

Papers used (USL) Stability
per week

Accounting & Reporting

2398 719 Stable
Department
Domestic & Clearing
2966 890 Not Stable
Department
Loan and Recovery
2763 829 Not Stable
Department
Pawning Department 2806 842 Stable

Cashier 3231 969 Not Stable

Front Office 3333 1000 Stable

Overall 17498 5249 Stable

Process Sigma - Process Sigma -

Process
Cpk Ppk Short Term Long Term
Capability
(Z - Within) (Z - Overall)
Not Capable -0.52 -0.56 -1.69 -1.78

Not Capable -0.7 -0.5 -2.14 -1.63

Not Capable -1.56 -0.75 -4.68 -2.26

Not Capable -0.58 -0.58 -1.82 -1.83

Not Capable -0.92 -0.61 -2.78 -1.88

Not Capable -0.68 -0.65 -2.07 -1.99

Not Capable -1.08 -1.11 -3.25 -3.34

17
 4.1.3 Analyzing the data. In analyze phase the root causes of excessive paper
consumption will be dictated, crossing out tasks with the least percentage of paper
usage eventually this would lead to the reduction of the list of potential root causes
also working on finding the relationship between the root causes and the results in
order to do so one-way ANOVA is chosen for this mission due to the reason there is
more than one variable represented by departments compared to the target plus this
section will explain the effect of root causes on the key output of the problem with
prioritizing the root causes to deal with them in the next phases. to make the
comparison between all the departments a hypothesis was formulated to be tested and
since the data set in use is continuous then the hypothesis would test the difference in
both of average and variance. The hypothesis states that all departments are consuming
the same amount of paper equally (null hypothesis) and the alternative hypothesis it
declares that at least one department is different from the other departments. The
significance level is 0.05 which resembles the percentage of risk that can be endured,
in other words, 5% chance may go wrong. By running the one-way ANOVA test in
Minitab to check the validity of the hypothesis the following results showed up see
table 3

Table 3
Analysis of Variance

Source DF Adj SS Adj MS F-Value P-Value

Factor 5 30153677 6030735 4.57 0.000

Error 306 403707225 1319305

Total 311 433860902

Since the p-value here is less than the level of significance (α=0.05) then the
null hypothesis is rejected which means not all departments consume the same number
of papers. In figure 5 the interval plot shows the confidence interval, where the
accounting and reporting department shows the lowest mean and both cashier and front
office have the highest mean and due to the fact, there is no overlap between the
intervals in other words the difference is significant between the departments.

18
 Interval Plot of Accounting &, Domestic & c, ...
95% CI for the Mean
3800
3600
3400
3200
3000
Data

2800
2600
2400
2200
2000
e t er
tm en t% t% sh
i e%
par r tm en en Ca ff i
c
de pa rtm rtm tO
g de pa pa on
t in in
g de de Fr
p or ar ry ng
re c le ve ni
& co w
g & re Pa
in t ic d
u nt es an
o m n
c Do oa
Ac L
The pooled standard deviation was used to calculate the intervals.

Figure 5. Interval Plot of the Top Departments.

The validity of one-way ANOVA can be checked as seen in Figure 6.

Figure 6. Residual Plots for Accounting & Reporting Dep., Domestic & Clearing
Dep., Loan & Recovery Dep., Pawning Dep., Cashier, Front Office.

19
 To apply one way ANOVA there are some assumptions one of them the data
should be normally distributed, from normality plot the distribution shows that data is
slightly right skewed but it’s robust assumption still considered as normal distribution,
so the process is capable of being preceded, from the versus fits there is no trend going
on in the chart which indicates that one-way ANOVA is ideal for the type of data in
hand, to identify the high potential causes of paper consumption ,pareto chart shows
the amount of paper usage for each task inside every department involved, figuring out
solution for the largest source of complaints according to figure 7 it shows the pareto
chart for all department.

Figure 7. Pareto Chart Measuring the Defects of All Departments.

Where it refers to the various reasons that cause high amount of paper
consumption where the bars here are indicates to the tasks performed by the different
departments, the bars are displayed in descending order, service requests have the
highest defect frequency, the cumulative percentage line points on 17% of all
complaint , letters task consume less than service request by 6% of the total of paper
usage and it goes on for rest of the tasks till reaching the last rank occupied by the
least tasks using paper in comparison to the rest these tasks are been put under other
category. Pareto chart for each department has been created to come up with the top
contributors in each one of them. Fish bone diagram is used to identify the root causes
of the problem where it helps to have a better visualization of the problem the
diagram can be seen in Figure 8.

20
Figure 8. Fish-Bone Diagram.

21
 The main causes in fishbone diagram were concluded from the top contributors
from each department in the Pareto chart and the sub-causes were provided by a
discussion with the team in charge inside the bank, for instance, the various reasons
for using paper in the service request are manual processing, employees are not trained
on the electronic process, printing service requests for validation and approval process,
not managing font size and margins. From the meetings with the team related to the
bank the following significant causes were agreed on to be the main ones behind
excessive paper usage at various departments of the bank manual processing and
validation process is on the top of the list this is the outcome of employees not utilizing
the electronic platform and lack of training to use them, a paper-based record is a
significant cause according to the employee in charge of account opening, for example,
the customer ID proofs are kept and stored in paper besides any technicalities are not
applied, font not reduced also not printing double-sided and printing unnecessary
redundant texts, preparing monthly paper-based account statement manually and other
ad hoc account statement requests, the lack of knowledge with utilization of electronic
platform from the employees side besides customers fear to involve in electronic
platforms and prefer more traditional methods, lastly the incapability to have full
control over the exact amount of printout or photocopies performed by an employee .

4.1.4 Improving the process. The potential solutions for the significant causes
are generated from a discussion with a focused group session to generate all possible
solutions there are some other solutions that are not rational or visible, so they have
been removed.

The significant causes and suggested solutions for each cause: -

1- Manual Processing and validation process (Not utilizing the electronic
platform and lack of training): the solution for this problem might be eliminating the
manual process and on-board the team to the electronic platform and training the
employees on the electronic platform - in all departments.
2- Paper based record keeping and storage (Customer ID Proofs and other
important information): Implementing an electronic storage method to keep a record
and prevent it from being lost or destroyed and complete KYC through an electronic
platform.
3- Not applying any technicalities to reduce paper: instead of printing on one
side default double-sided print (front and back), adopting standard font size "9" for all

22
printouts (statements, handouts, etc.), reducing line spacing to standard "1" for all
documents, reduce both Margins and header / Footer texts and eliminate redundant
texts.
4- Manual Paper-based Monthly account statements and other Adhoc account
statement requests: for this issue the following applicable solutions were suggested
starting with eliminating paper-based statements transforming to statements, reaching
to the reduction of the font size to "9" instead of "11" in case of paper-based statements.
5- Employees not trained to utilize electronic platforms fully: Training the
employees on the electronic platform - in all departments is one of the recommended
solutions besides conducting periodic knowledge sharing sessions to reduce paper
consumption
6- Customers are not encouraged to opt for electronic platforms: doing a
campaign and onboarding customers to sign up for statements would encourage
customers to involve in the upgrading and encourage staff to sign up for statements.
7- No control over the number of printouts or photocopies an employee can
take: It can be solved by establishing a process to track papers per employee (printers
are integrated with employee IDs and PINs), an employee could not take printouts of
more than 20 papers per day (Requires manager's approval to print more papers) and
highlight and reward the employee who taken the least number of printouts in a month.
After identifying the solutions, they will be justified by a payoff matrix where all the
solutions are discussed by the team to be divided into based on the benefit estimation
decided the level of ease of implementation vs. impact analysis:
The first group of solutions is classified as high impact with low effort:
i. Some departments have a better system in place (can perform certain
tasks electronically) however the team is not fully utilizing the same
– Leveraging the existing functionalities in those systems and training
people to utilize them fully.
ii. Default double-sided print (front and back).
iii. Adopt standard font size "9" for all printouts (statements, handouts,
etc.).
iv. Reduce line spacing to standard "1" for all documents.
v. Reduce Margins.
vi. Reduce Header / Footer texts.
vii. Eliminate redundant texts.

23
 viii. Conduct periodic knowledge-sharing sessions to reduce paper
consumption.
The next category has a high impact and a high effort to apply:
i. Eliminating the manual process and on-board the team to electronic
platform and training the team on new electronic platform in all
processes.
ii. Implement an electronic storage method.
iii. Complete KYC through electronic platform.
iv. Eliminate paper-based statement and transform to e-statements
(softcopy).
v. Campaign and on-board customers to sign up for statements.
vi. Establish a process to track papers per employees (printers are
integrated with employee IDs and PINs).

The third category is classified as low impact and low effort category:
i. Encourage staff to sign up for statements.
ii. Highlight and reward employees who have taken the least number of
printouts in a month.

The last category of solutions carries low impact and high effort:
i. An employee could not take printouts of more than 20 papers per day
(Requires manager's approval to print more papers).

To check the validity of improvement for all departments the capability

histogram was utilized (See Figure 9).

24
 Figure 9. Capability Histogram.

From Figure 9 we can conclude that the data after the improvement is partially
inside the specification limit. the sample size here for the before is 52 weeks and for
the after is 6 weeks subgroup size for both is one from the before and after capability
comparison for total paper consumption the process performance report explains how
much the process is improved by noticing the readings of the data process potential
capability (Ppk) was -2.70 now it’s -0.12 so the overall variation is decreased by 2.58
for the process capability indices (Cpk) before improvement was -2.50 after
improvement became -0.13 so there is an improvement.

25
Table 4
Statics of the Process After Improvement

Process Characterization
Statistics Before After Change
Mean 17498 5512.5 -11985
StDev(overall) 3663.3 630.76 -3032.5

From figure 9 the process standard deviation was reduced significantly (p <
0.05) and the process mean also reduced significantly (p < 0.05) so After – Process is
not fully met the USL. However, For hypothesis testing 2 sample t-test is utilized to
check the statistical significance of the improvement, paired t-test is not used here
since the size of the two samples in comparison are not equal sample size ,the total
paper consumption before is 52 weeks and the total paper consumption before is 6
weeks ,the mean for before and after is the following respectively 17498,5513 and the
standard deviation respectively is 3663,631 , p-value is 0.00 showing in the report
escorted by the applying the test using Minitab software. The box plot chart is
identifying the outliers in the dataset (See Figure 10).

Boxplot of Total paper consumption Before Vs Total paper consumption After

30000

25000

20000
Data

15000

10000

5000

Total paper consumption Before Total paper consumption After

Figure 10. Boxplot Chart.

From Figure 10 the boxplot of total paper consumption after doesn’t overlap
with the boxplot of total paper consumption before, the main outcomes of the

26
hypothesis test firstly there is a significant improvement 0.05 level of significance also
the improvement is statistically and practically significant lastly After – Process is not
fully met the USL. Hence requires further follow-up before handover.

4.1.5 Controlling the improvement. To make sure the process will not go back
to the previous performance controlling need to be performed over the process After
the change happened in the process checking the standard deviation or mean has
changed is a must by performing before/after I-MR chart of total paper consumption
for all departments the following results showed up the standard deviation was reduced
by 87%(p<0.05) and the mean is significantly lower (p<0.05) as demonstrated in
Figure 11.

Figure 11. I-MR Chart Before and After for All Departments.

The graphical representation of hypothesis shows that for both standard

deviation and mean are less than α=0.05 then both are significantly improved by testing
the reduction of standard deviation and the shift in mean whether it happened or not,
p-value for both is p<0.001 where it states that a reduction in standard deviation
happened and a shift in mean.

27
Table 5
Control Phase Before and After Summary

28
 Before/after IM-R chart executed for each department involved and the results
are recorded in the table 5, as the table is showing in the table the results of Before
/after IM-R chart showing a significant improvement where the average number of
papers in use has decreased and the process in all departments stable, yet the data
passed capability test partially means that data is meeting the customers expectation
partially but the variation got decreased.

4.1.6 E-paper, a great substitute for pulp paper. E-paper offers many
potential benefits to customers, banks, and the environment. Firstly, e-papers are the
best substitute for pulp paper. They are environmentally friendly because they create
far less waste as compared to paper. Recycling electronic things are more common,
which is a great benefit (Ali et al., 2016). Apart from that, e-papers will do away with
the traditional banking system and infrastructure that lacks a dependable information-
keeping and organizing system. It means all data is kept haphazardly, and when
needed, it becomes a herculean task to find the required information or documents.
Papers are stored in stores where retrieving can be a serious challenge (Ali et al., 2016).
Therefore, it becomes a hard-to-handle situation to convey information or data across
the units in the given time. Considering this, artificial intelligence-based deep learning
can be a landmark achievement because machine learning-based algorithms are more
accurate than humans in managing and storing data. Deep learning has an accuracy of
more than 95.5% which not only makes customers happy and satisfied but also makes
management easier and hassle-free (Wenzel et al., 2019). Employing deep learning
technology is colloquially termed digitization. Digitalization is a process to supersede
manual work by digital machines like computers and robots. They are used for data
keeping and organizing, keeping the flow of information across the field, enhancing
data security, promoting transparency, improving communication, and above all
assuring high-quality customer service (Pascal et al., 2020). Transportation of paper
depends on supply chain management. Most Asian, African, and South American
countries lack a dependable supply chain management system. Banks often face issues
with papers such as deposit slips, account opening forms, or loan applications.
Ironically, 40% or more paper is wasted but still, banks face the issue of paper
shortage, which is due to a poor supply chain system (Ni et al., 2020). Among the
supply chain operators, forecasting paper consumption in the market, and enhancing
smooth transportation is serious constraints. Electronic technology can be a great

29
solution to the endemic problems with supply chain management, such as limited data
sharing and ineffectual communication and transportation infrastructure (Ni et al.,
2020). Another notable issue in the traditional banking system is manual work. It
leaves a lot of space for human errors coupled with operational challenges. Deep
learning helps in predicting different types of malware and loopholes in the system
(Pascal, 2020). The profitability of Walmart had increased exponentially due to better
prediction of demand and supply. This also led to increasing the number of stores
because of the improved management system. Besides, due to increased efficiency, it
offers a more accurate map of the system that enables to speed up the process (Seyedan
& Mafakheri, 2020).

4.1.7 Results. The study shows that paper consumption is one of the heavy
expenses on the overall exchequer. Paper use is exceedingly abundant in many
departments such as service and cash. The data shows average paper consumption is
17498 pages per year in the given bank. Paper consumption in one bank can differ
from others depending on the scale and work. Similarly, in the bank, paper
consumption varies in different parts of the year. For instance, in January, paper
consumption can drop to around 15000 or even 13000 but can quickly jump to well
over 20000 pages per in the sixth week. In the eleventh month, the use of paper use
decreases drastically to around 14000. Soon afterward, it climbs to around 20000
pages. The trend again wanes from the twentieth to a twenty-sixth week before it starts
surging again July closing comes closer. In the last two-three weeks (fifty-one and
fifty-two), the use exponentially rises and touches an all-time high of 28006 pages a
week. Overall, paper consumption remains around 17498 pages per week. Moreover,
different departments have different paper consumption. In the Domestic & Clearing
Department, 2966 pages per week are used. Similarly, in the Loan and Recovery
Department, 2763 pages are used in one week. The pawning department uses 2806
pages a week. The cash department uses 3231 pages. The front office has the highest
paper consumption, using 3333 pages a week. In the Loan and Recovery Department,
the number fluctuates unevenly. For instance, the use of paper starts rising from the
12th week and continues rising for the next 6 weeks until it crosses over 6000 pages a
week. Then it drops to below 2000 pages a week. Sooner it starts hovering around
2500 in the remaining weeks. In the Similarly, Pawing Department, the use of paper

30
also fluctuates in different parts of the years. As usual, at the start of the year, paper
consumption remains as low as,1500 pages a week. But in the last few weeks of the
year especially from the 46th week to the 52nd week. In the Domestic & Clearing
Department, paper consumption has higher fluctuations. In the 11th, 12th, and 13th
weeks, paper use remains high and reaches over 6000 pages a week. It can be compared
with the 2966 average. Then again it surges to over 6000 in after the 46th week. In the
last two weeks, paper use even reaches around 8000. With 3231 pages per week, the
Cashier Department also has a higher use of paper. Interestingly, unlike others, paper
consumption remains high even in the initial weeks of the year. In the 21st and 22nd
week, in the 36th and 37th week, and then after the 47th week, paper consumption
increases to over 6000 pages a week as compared to the 3231 average Front Office has
the low use of paper in the initial weeks and remains around 1500 to 3000 pages a
week but soon it increases up to 5000. With some fluctuations, it remains stable till the
last weeks of the year. Amongst them, the Domestic and Clearing Department, Loan,
and Recovery Department, and Cashier Department have unstable use of paper. It
means the need for paper can increase unexpectedly. The other departments have a
stable ratio of paper consumption. Moreover, the officials of the bank told that paper
is wasted on a large scale in many departments. The ratio of paper waste was different
in different banks. The paper waste differs from 30% to 40% in different departments.
It happens because of a host of factors: poor management, unskilled workers, poor
machinery such as the malfunctioning of printers and photocopiers. Besides, a lot of
waste of paper is due to the redundancy of forms. Mostly, the new forms replace the
older ones. Due to issues in the supply chain management, the banks tend to get a good
stock of forms and papers to cope with the shortage of forms and papers. This often
leads to a higher amount of paper loss. In the Service Department, the use of paper
remains the highest, around 180,000 pages a year. The second important service is the
letters. About 100,000 pages are sent by a bank each year, which is a huge number.
Then, there come the cash deposit slips with just below 100,000 pages a year. Loan
applications also remain around 100,000. Cash withdrawal slips also around 90,000.
Account statements also cost over 90,000 pages a year. Transfer requests, account
closure forms, deposit forms, account, and opening forms also remain more than
50,000 pages a year. Furthermore, 60% of the respondents says that the paper waste is
not properly disposed of. According to them, it is not their major concern to worry
about the leftover paper. The trashed copies or the redundant forms are mostly set afire

31
to dispose of them. On the other hand, 40% of the paper is thrown in different bins.
Although disposing of the papers is formally assigned to workers of the bank, not
always things are done quite right. Besides, the given bank in Iraq has not yet hired a
disposal company to manage the paper waste.

32
 CHAPTER 5

CONCLUSION

Lean six sigma methodology is used in this research to remove the excessive
consumption of paper in a bank located in Iraq. Lean six sigma method is beneficial in
the service sector likewise in the production sector for the purpose of removing the
wastages the initiation of the process started by collecting the required data the type of
data used here is continuous due to the fact that the number of observation is high to
the discussion session the project got authorized by the stakeholders the required data
was collected to originate a draft of type 1 control chart to be used in reality the data
collected is continuous and not collected in subgroup then the ideal control chart to
use is I-MR chart. The chart shows up the results overall for all departments and
individually for each department in measuring helps to understand more how the
procedure is going on usually by checking the variation and consistency of the data
results reveal that the data is stable but not capable of delivering customer’s request
for this reason this project founded. Moving to the next phase analyzing the data for
the purpose of founding out the root causes of the problem and focusing on them from
the Pareto chart the top contributors resemble the departments with the highest
frequent tasks using a large amount of paper the following tasks carry the highest
frequency according to Pareto chart ordered in descending order (service requests,
letters, cash deposits, loan applications, cash withdrawals, account statement, transfer
instrument, closure requests, letter of credits applicants).where a brainstorming session
was held in this period of work to discuss cause and effect of the paper usage causes
are categorized into environment, people, measurement, machines, methods and
materials, each cause has a sub-bone explaining the wastages happening in each task.
All the causes and sub-causes lead to the effect which is paper usage at the bank. The
significant causes are shortened to the most frequent ones eventually in the
brainstorming session 7-significant causes agreed on to be the main event in the project
focus on them and try possibly to improve them, the 7-significant causes agreed on
were discussed in focused group meetings to come up with the most proper solutions

33
for each one of the problems, the solutions are happened to be placed in Payoff chart
based on the scale of impact of the solution on the system and the effort provided by
the crew then checking the validation of the improvement statistically, the comparison
between before the improvement and after we can see a significant change the
decreased in standard deviation and the shift in mean indicate that the process
developing yet it didn’t meet the customer specifications.

5.1 Limitation of The Study

Since the number of data points taken after improvement is 6 data points
compared to the raw data points equal to 52 data points so statistically, we can’t say
drawing of Before/After IM-R chart is healthy due to the fact time to complete the
research is limited and waiting for longer time to collect enough data for warmup
period would cost another semester the previously mentioned data in the research is
only the preliminary data to show the improvement visually for proving it statistically
some data need to be collected after warm up period ,type 1 control chart need to be
drown then a real comparison with the pervious data can take a place .

5.2 Recommendation for Future Researchers

In order to avoid the mistakes that happened in this research to have more
accurate results a large number of samples of data need to be collected, also a longer
period of time is required for such a kind of project to help observe reliable and
accurate data especially in the advanced phases.

34
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