Company Profile Of The Icici Bank Commerce Essay

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ICICI Bank offers wide variety of Loans Products to meet the requirements of the general customers and companies. ICICI bank main focuses at pairing the convenience banking for their clients with networked branches/ ATMs and facility of E-channels like Internet and mobile banking. Bank brings banking at the doorstep of their customers. If customers are looking for a personal loan that is very easy to get, search will stop here. ICICI Bank Personal Loans are easy to get and absolutely wrangle free. With minimum documentation one can now take a loan for an amount up to Rs. 15 lacs .

The personal loan of ICICI Bank offers a perfect choice to all the financial needs which are generated when a person is thinking for house loan and renovating his house, buy a new computer and vehicles, marriage related expenses or his child's higher education. It can be said that an ICICI Bank Personal Loan is the best option for full fill all your financial needs. Key benefits of ICICI Bank Personal Loan includes availability of loan up to 15 lacs, there is no need to security or guarantor, faster processing, minimum documentation, attractive interest rates, and 12 to 60 months of repayment options.Intrest rate minimum 12% to 14% and maximum 22% to 24% on personal loan Bank is giving facility "Loan on Phone", you not need to visit at bank, if you have been operating your account for the past 9 month. (Personal loan, ICICI Bank, 2009).

Operations Department as a operation manager (Function And Contribution) at ICICI Bank-Personal Loan Department

In the Present era Operation department is the most requisite for the organization. Experts say that all the organizations market (sell), finance (account), and produce (operate), and it is noteworthy to know how the OM activity functions. . A big part of the organizations revenue is spent on operations management (Heizer & Render, 2008, p 4-5).

Like every other service organization, ICICI Bank personal loan is also performs several of operations. All function can be distribute under the three head of the department, like, operations, finance and marketing. Which activities particularly come under operations are teller scheduling, check clearing, over draft, collection, transaction processing, facilities design and layout, vault operations, maintenance and security. (Heizer & Render, 2008, p 34)

As a operations manager of this Bank, one will be expected to make application of all basic functions of a manager i.e. planning, organizing, staffing, leading and controlling, to the decisions they make in the operations management function. As an operations manager I will emphasize on taking decisions regarding design of the service, environmental, quality assurance, process strategy, location strategy, layout strategy, human resources, supply chain management, inventory management, scheduling and maintenance.

B.1: Customers of the company and what expectation from the (ICICI)

All account holders are external customers (like local customers, companies, stake holder, supplier).

As an operation manager need to understand competition (what should we provided?)and expectation of customers (what would you like?) and need to concord expectation (what would be acceptable?)

(Robert Johnston & Graham Clark, pageno-83,84)

On the other hand customer expect from the bank minimum interest rate and returns period according to the customer suitable ,the lowest EMI, Bank term and condition should not hard for the customers, hassle free services and facility

Nigel Slack's five operation

According to Nigel Slack, there are five premises to make things beneficial for the business processes while keeping the operations strategy into consideration (Nigel Slack,Sturat Chambers,Christine Harland ,Alan Harrison , Robert Johnston,Page51-52):

"Do things right"- the quality advantage

"Do things fast"- the speed advantage

"Do things on time"- the dependability advantage

"Change what you do"- the flexibility advantage

"Do things cheaply"- the cost advantage

In ICICI Bank (Industrial Credit and Investment Corporation of India)


Quality means without any mistake you have to provide error free products and services to the customers that should be fit on their requirement and keep the

customer satisfaction" (Slack, et al 2004).

Personal loan department quality is the core of the organization. For the bank their customers are not merely their source of revenue but a part of the organizations extended family. As regards who comes in contact with the bank, realizes that the bank gives an atmosphere of home away from home.


"Speed means that to reduce the time factor between customer demand and delivery of products and services with entire satisfaction of customer" (Slack, et al 2004).

The bank effort to give the forthwith services to the client and makes it sure that his clients are updated with all the salutary information so that they can take informed decisions. The layout of the bank is designed according to the convenience and taste of the existence and prospective customers. The employees of the bank were given extra training and education so that they are in a position to answer all sorts of queries of their customer, that too in a very soft and affectionate manner.


"It means the service and goods deliver in time for customer to receive their goods or

services exactly when they are needed or at least when they were promised" (Slack et al 2004).

Bank give the priority of personal loan delivery on time according to the bank promised because if customer did not receive loan on time it means it need less for customers . (FLEXIBILITY)

"It means being able to change the operation in some way. This may mean changing

what the operation does, how it is doing it, or when it is doing it" (Slack, et al 2004).

Different type of client different type of needs. ICICI bank provides the personal loan according to the customer requirement and expectation.


The bank also takes a lot of care and attention while deciding the rate of interest for the loans it offers in the market. Their goal is to be one of the most responsive loan departments. It applies all ethical standards and rules and regulation while setting the limits standards for interest rates. They have true and fair practices, and their operations are very transparent. The bank also seeks for quality from the point of view of its employees as well for the convenience of it employees, the personal loan department follows several kinds a lot of flow diagrams and process charts. This helps the employees in better understanding of the process and ,it helps the company to get rid of the unnecessary duplicated steps.

5 Transformation Process in FX

"Transformation process model is a process that take in a set of input resources

which are then used to transform something, or are transformed themselves, into

outputs of goods and services which satisfy customer needs" (Slack, et al 2004). In

Figure: ICICI Operations System

Transformation Process

Process, Boiler, Drawing, Weaving, Quality, Control, Knotting. Folding, Cutting



Customers satifacton






Orders, Staff, Facilities

(Nigel Slack, Stuart Chambers, Christine Harland, Alan Harrison,Robert Johnston, Operation Management,Second edition,Page no 44)

C part

Bottleneck at ICICI Bank-personal loan

In the dynamic circumstances that prevail in today's business world, companies face a lot of difficulty in maintaining status quo. Every company faces one or other type of bottleneck. At ICICI Bank -personal loan, it is observed that there is a very high attrition rate among the sales team during the ending months of every financial year. Because of this, disbursements of loans use to become very difficult as well. Consequently, the company needed to hire a new sales team every time to suffice for the employees who left. Training and development of these new recruits is another major issue. In totality it can be said that retention of trained and qualified sales force is one big bottleneck and the challenge before the company. I think this problem can be overcome only if the more trust and confidence is generated among employees regarding the company's human resource policies (Robert Johnston and Graham Clark,Sevice Operation Management ,third edition,Page no-290)

Strategic Importance of JIT(Just-in-Time), TPS and lean Operations

"JIT aims to meet demand instantaneously with perfect quality and no waste"

JIT, TPS and lean operations are philosophy of continuous helps Lean operations focus on customer desires, TPS focuses on respect for people and standard work practices, and JIT focuses on driving out waste by reducing inventory. This should be adapted in the fairest possible manner. But all the three approaches reduce waste is found in anything that does not add value; organizations that implement these techniques are adding value efficiently than other firms. The expectations of these systems are that empowered employees work with commitment management to build systems that respond to customers with ever-lower cost and higher quality.

"JIT is a disciplined approach tom improving overall productivity and eliminating waste. It provides for the cost-effective production and delivery of only the necessary quantity of parts at the right quality, at the right time and place, while using a minimum amount o f facilities, equipment, material, and humane resources.JIT is dependent on the balance between the supplier's flexibility and the user's flexibility. It accomplished through the application of elements which require total employee involvement and teamwork. A key philosophy of JIT is simplification." (Nigel Slack, Stuart Chambers, Christine Harland, Alan Harrison,Robert Johnston, Operation Management, Second edition, Page no 548)

The operations at ICICI Bank-Personal Loan have been conducted very effectively. According to my perspective, adoption of JIT layout can result in achieving higher efficiencies from the same resources. This adoption will result in increased flexibility, positive impact on employees, and most efficient use of space. JIT develops the office layout in a very efficient manner. The office furniture and equipment and even the walls are movable. Equipments are generally modular. Layout flexibility aids the changes that result from product and process improvements that are inevitable with a philosophy of continuous improvements. Then, JIT layouts also allow the employees to work together so they can tell each other about problems and opportunities for improvements. When layout provide for sequential operations, feedback can be immediate. Reducing set up time and cost through the proper application of JIT is an excellent way to reduce inventory investment and to improve productivity. It is not very easy to make the application of all these techniques at the place of work, but this could be one of the best ways to achieve efficiency.

D Part

Application of Service blueprinting

No doubts the personal loan department of the bank is performing is operation in a very well coordinated matter, yet I would like to suggest that they can make use of Service Blueprinting as a part of their process analysis and design. This technique is highly beneficial for the products with high service content. By definition it is a process analysis technique that focuses on the customer and the provider's interaction with the customer. This process is fragmented into various layers and each layer suggests different managerial issues. The service blue print has the capacity to highlight potential failure points and at the same time it also tells technique how to add or improve effectiveness of the operations (Heizer & Render, 2008, p 210).

Auditing the Quality Standards of Service

To make sure a the system established at ICICI bank personal loan is operating at expected quality level, control of the process s needed. The best processes have little variation from the standard expected. The operations managers' task is to build such system and to verify often by inspection that performance is up to standard. Inspection should be thought of as an audit. Audits do not add value to the product, or the service procedure (Heizer & Render, 2008, p 208). However, operations manager, like financial manager need audits and they need to know when and where to audit. There are two basic issues relating to inspection, when to inspect and where to inspect. The seven tools of TQM aid in "when and where to inspect" decision. However inspection is not a substitute to robust procedure, it is one well known experiment conducted by an independent research firm. As an operations manager I will make it sure that the bank is paying more attention to operators, measurement methods, communication methods and responsibilities. An operation manager should cultivate a work culture where good procedures, employee empowerment, are better solution than trying to find defects by inspection.


No doubts the personal loan department of the bank is performing is operation in a very well coordinated matter, yet I would like to suggest that they can make use of Service Blueprinting as a part of their process analysis and design. This technique is highly beneficial for the products with high service content. By definition it is a process analysis technique that focuses on the customer and the provider's interaction with the customer. This process is fragmented into various layers and each layer suggests different managerial issues. The service blue print has the capacity to highlight potential failure points and at the same time it also tells technique how to add or improve effectiveness of the operations.

Improving Design of Service at ICICI Bank Personal Loan

ICICI bank personal loan it takes almost ten to fifteen days to disburse a single file. With enhanced design of the service, this time period can be reduced to an average of four days. It is proposed to divide the service into small parts and identify those parts that lend themselves to automation or reduced customer interaction. When a sales executive performs cold calling, in order to generate a need of personal loan in his client, he should have a handout, which needs to be filled out by his client on the spot. In this way the sales executive will have a kind of written consent of his client. Even if his client denies accepting the loan the sales executive has the document to contact him later.

As an operations manager has to identify the moments of truth and design operations that meet or exceed the customers' expectations. " Carlzon, former president of Scandinavian Airways, believes that in the service industry, there is a service of truth when the relationship between the provider and the customer is crucial"

At that moment the customer's satisfaction with the service is defined. The moment of truth is the moment that exemplifies, enhances, or detracts the customer's expectations. That moment may be as simple as a smile or a checkout clerk focus on you rather than talking over his shoulder to the clerk at the next counter.

Improving quality at ICICI Bank Personal Loan

Managing quality helps build successful strategies of differentiation, low cost or response. The operations manager objective is to build a total quality management system that identifies and satisfies customer needs.

TQM is important because quality decisions influence each of the ten decisions made by operations manager. TQM quality management requires a never-ending process of continuous improvement that covers people, equipment, suppliers, materials and procedures. The basis of philosophy is that every aspect of operations can be improved. The end goal is perfection which is never achieved but always sought. Secondly, as a part of improving quality emphasis needs to be laid on designing a program to reduce defects to help lower costs, save time, and improve customer satisfaction.

Six Sigma is a comprehensive system, a strategy a discipline and set tools- for achieving and sustaining business success. This strategy focuses on total customer satisfaction (Heizer & Render, 2008, p 270).


Benchmarks are target against how well they are performing. The concept of internal benchmarking is also applicable to this organization. Our organization is large enough to have many divisions or business units; application of internal benchmarking is a very natural approach. Benchmarking often take the form of "practices benchmarking" found in the other firms or in the other divisions. (Robert Johnston & Graham Clark, p 283)

Facility Layout for the ICICIBANK- Personal Loan

Generally, the personal loan department of the ICICI Bank has to deal with customer on daily basis. There are various times in a day when the bank is full of customers. As an operations manager, need to focus on implementing a kind of facility layout which is customer friendly, and which gives enough space to its employees to accommodate with the various kinds of people with different kind of queries and who has to comply with different kind of formalities as well, at the same point of time. There is a great need to make the place very comfortable for old age people as well, because a great percentage of the banks customer comprise of people above 50 years of age. The layout should be such that it encourages customer responsiveness as well.

To design a good service layout for my firm I will consider following elementary elements, like ambient conditions, special layout and functionality, signs symbols and artifacts. Ambient conditions are the background characteristics such as lightening, sound smell and temperature. All these affect workers and customers and can affect how much is spent and how long a person stays in the building. Special layout and functionality include customer circulation path planning, aisle characteristics and product grouping. Signs symbols and artifacts are the characteristics of building design that carry social significance.