Question: Create a current state map for the mailroom operation for the mailroom case study below.

Start your value stream map with delivery of the mail to ING.

Additional information: Assume 1000 pieces of mail for your inventory calculations Receiving and transporting the mail to the mailrooms take 5 min each Creating the calculator tapes takes 5 minutes, in 20% of the cases the totals of the two tapes are different Manual verification takes 1 minute, totals are rarely wrong. Use a weighted average for the processing time of CIFing You do not have to calculate total lead time and processing time since some of the processes are performed at the same time, but you need to show the timeline. Show how you calculated your times Identify at least 2 improvement opportunities Image you would present your value stream map to your boss. Pencil is ok, sloppy is not !!! Spell-check your work If you make assumptions, write them down

Mail Extraction

Once the mail was received in the mailroom, an operations associate (OA) fed the mail into the extractor and pre-sorted the mail into the following six categories.

1. Applications and cheques from standard fulfillment and direct mail clients,
2. Cheques from express enrollment clients,
3. Cheques from existing clients,
4. Free-standing inserts from other promotional efforts,
5. Marketing surveys, and
6. Loans.

The same OA also performed a preliminary verification on all cheques and applications to ensure that there was no missing or obviously incorrect information. The first category, standard fulfillment and direct mail clients represented about 70 percent of new clients, did not already have a customer information file (CIF); therefore, their applications would take longer to process. The second category was customers who had a CIF, which was created following a call to the 24-hour call center or through the Internet. About one-third of the new applications with a CIF were Internet-generated. The last three categories were set aside to be handled by different groups. This process of mail extraction and preliminary verification took approximately 50 minutes per 1,000 pieces of mail.

Sorting and Checking

Shortly after the extraction process was started, the applications and cheques (i.e., first three categories) were passed to OAs for further sorting and quality checking. Up to five OAs performed these tasks simultaneously. As many as two OAs dealt with the applications and cheques for fulfillment of new clients, while up to three others processed cheques for existing clients. All cheques were sorted according to account type.

New client applications within the first two categories were further sorted according to whether or not they were single or joint accounts. Joint accounts took longer to process, as the OA would have to enter information for the secondary or joint account holder who might or might not have a CIF. Applications were grouped into batches of 50, and two calculator tapes of each batch were made to verify totals.

During this additional sorting, applications underwent quality checking. OAs checked for the clients SIN, telephone number, date of birth and deposit amount. They further checked the body and figure of all cheques and the information relating specifically to the various account types (e.g., customers opening a GIC account had to include the term of investment). The mailroom supervisor also completed signature verification by matching the signature on the cheque with the signature on the application. The entire process of sorting and checking took six person-hours per 1,000 mail pieces.

Exceptions were separated during the Q&A process, prior to batching. All applications and cheques not received in good order (IGO) e.g., no signature on application, cheques stale-dated, or travellers cheque instead of personalized cheque were set aside. All not in good order (NIGO) items had to be returned to the client by mail. The number of exceptions was not tracked.