iowa finance authority title guaranty division team tg wip · kaizen methodology kerry ......

Iowa Finance Authority

Title Guaranty Division

Team TG WIP Kaizen Event Report Out

December 15, 2006


2

Background Karen

This event addressed the

Title Guaranty process from

when a commitment is

requested until the final

certificate is issued.


3

Team Members Karen

Team leader: Karen Lodden, DNR Bret Mills, (IFA – Executive Director)

Steve Harvey, (IFA – Director of Operations) Loyd Ogle, (TGD – Director)

Joanna Wilson, (TGD – Attorney) Linda Berg, (TGD – Marketing)

Kerry Carman, (IFA – IT) Judy Peterson, (TGD – Division Production)

Linda Mahoney, (TGD – Attorney Production)

Consultant: Brent Jameson, Guidon Consultant: Rob Allen, Guidon


4

Objectives / Goals Linda B.

Objectives:

1. Improve internal cash controls.

2. Improve customer service relative to time, while maintaining quality.

3. Increase market share and hence, revenue.

4. Free up staff time from production for training and marketing.

Goals:

1. Reduce commitment processing time by 50%

2. Reduce lead time for final certificate processing by 50%

3. Reduce work in process to 3 days

4. Reduce the number of steps in the process by 50%

5. Reduce the number of handoffs by 50%


5

Kaizen Methodology Kerry

Clear objectives

Team process

Tight focus on time

Eliminate waste

Quick & simple

Creativity vs. capital

Immediate results (“quick wins” to add value)

5S “mindset” – sort, set order, shine, standardize, sustain -- to support event activities


6

Old Process Linda M.

IFA Title Guaranty Division

Un

de

rw

rite

rU

nd

erw

rite

rP

ro

ce

sso

rP

ro

ce

sso

rS

up

ervis

or

Ce

rtifica

tio

n

Su

pe

rvis

or

Ce

rtifica

tio

nR

ece

ptio

nis

tR

ece

ptio

nis

tM

ail C

lerk

Ma

il C

lerk

TG

FA

X

Are

a/P

eo

ple

TG

FA

X

Are

a/P

eo

ple

Proceed with fabricationProceed with fabrication

Su

pe

rvis

or

Co

mm

itm

en

t

Su

pe

rvis

or

Co

mm

itm

en

tC

usto

me

rC

usto

me

r

send application

Receive

application

Receive

application

Forward to

Commitment

Supervisor

Receive

application

(email)

Receive

application

Forward by email

to Commitment

Supervisor

Follow-up call

Sort by T & D only

Property in

system?

Print one copy of

application and

PTO

Log into CAP

Receive

application

Fill out tally sheetAssign application

to processor

Deliver to

processor

Enter street

address search

Call applicant for

clarification if

required

Review property

details to assure

same property

Schedule B

exceptions

Open mail and

date stamp

Deliver to TG

Certificate

Supervisor

2

hrs

2

hrs

½

hrs

Receive

application

Sort by name/

application

Evenly divide

applications

Deliver to

processor

½

hrs

½

hrs

Receive

application

(hard copy)

Prior commit or

old cert?

Discrepancies?

Customer receives

hard-copy of

commitment or

certificate

If required –

customer request

a change on

commitment (50%)

If required –

customer request

change in

certificate (1% -

2%)

Customer receives

faxed or emailed

commitment

Copy previous

application

Create new

property record

Process ends –

notify supervisor

Duplicate?

Add new

commitment

Add new certificate

Complete the

required screen –

name, coverage

types

Details screen

complete all data

(Schedule A)YES

NO

NO

NO

Review property

details to assure

not duplicated

Review paperwork

to determine

commitment or

certificate

Create new

property record

Complete the

required screen –

name, coverage

types, assign

jacket number

Put checks in

numerical order,

clip together, mark

with initials

Apply payment

(premium check)

(details screen)

Review the title

opinion

Print schedule A

and B

Deliver checks to

fire safe

Details screen

complete all data

(Schedule A)

Review the title

opinion

Is title opinion

adequate?

YES

NO

Request

clarification from

supervisor

Contact customer

for more

information

Consult with

underwriting

Provide

clarification

Consult with

underwriting

(2nd

processor)

Review copies of

schedules A and B

Owner policy? Save in “ready”

status

Automated edit

checks

Pass edit?

VAVAVA

VAVA

VAVA

VA

VAVA

YES

YES

YES

NO

Processor initials

the hard-copy

Receive

confirmation of

sent fax

“Issued” print the

commitment

Hard-copy for

commitment to

customer (40%)

Efax or email to

customer

(requestor)

Mail commitment

to party noted on

application

Hard copy to

reviewer for initials

– owner

commitments

Receive request

for correction /

change on

commitment

Create Form E

endorsement

File confirmation

with commitment

file (individual file

systems)

Receive request

for correction /

change on

certificateYES

YES

YES

Processor initials

the hard-copy

Mail hard-copy to

customer

NO

3

days

to 1

month

15

min

del

ay

Receive request

for further

information

15

min

YES

Mail or fax

hardcopy of Form

E

YES

Customer receives

copy of Form E

YES

YES

VA

Supervisor assigns

another

commitment to

processor

Discard duplicate

request

NO

YES

Receive request

for further

information


7

New Process Judy

IFA Title Guaranty Division

UN

DE

RW

RIT

IN

GU

ND

ER

WR

IT

IN

GC

US

TO

ME

RC

US

TO

ME

RM

AIL

C

LE

RK

MA

IL

C

LE

RK

PR

OC

ES

SO

RP

RO

CE

SS

OR

Receive

applications

Processor picks up

their share of new

applications

Open mail

Sort mail

-division issue

-attorney issue

By name

Log into CAP after

retrieving from

printer

Enter street

address - seach

Property in

system?

Review property

details to assure

same property

Review property

details to assure

not duplicated

Discard duplicate

request

Copy previous

application

Customer receives

faxed or email

commitment

Follow-up callSend application

Deliver to

processing

distribution area

45

min

Provide

clarification to

processor

Receive fax / email

via fax server

Print one copy of

application and

preliminary title

opinion

Discrepancies?

Call applicant for

clarification if

required

Create new

property record

Review paperwork

to determine

commitment or

certificate

Create new

property recordPrior

commitment or

cert?

Duplicate?

Add new

commitment

Add new certificate

Complete the

required screen –

name – overage

types – jacket

number

Details screen –

complete all data

(schedule A)

Complete the

required screen –

name – coverage

types

Details screen

complete all data

(schedule A)

Review the title

opinion

Review the title

opinion

Apply payment

(copy of premium

check) )(from

details screen)

Put checks in

numerical order

clip together and

initial

Apply payment

(copy of premium

check) )(from

details screen)

Is title opinion

adequate?

Schedule B

exceptions

Review draft of

Schedule A and B

on screen

Save in “Ready”

status

Request

clarification from

supervisor, co-

worker, or

underwriting

Deliver checks to

fire sate

FIRE SAFE

2.5

DAYS

TO 20

DAYS

delayAutomated edit

checks

Fax or email to

customer

requester

“issued” print the

commitment

Mail hard copy to

customer shown

on application

Pass edit?

File as to

individual’s file

system

Receive request

for correction /

change on

commitment

Receive request

for correction /

change on

certificate

Create Form E

endorsementMail or fax Form E

Customer receives

hard copy of

commitment

If required,

customer request

a change on

commitment (50%)

If required, request

change to

certificate (1% -

2%)

NO

YES

Receive Form E

YES

NO YES

NO

YES NO

YES

NO

YES

Provide

clarification


8

Results Judy

Old New % Change

# of Steps 88 64 27%

# of Handoffs 23 15 35%

# of Decisions 9 8 12%

Delays 7 2 71%

Value Added Steps 8 8 0%

Lead Time 3.4 – 30.4 days 2.3 – 20.1 days 34%


9

Key Learning Loyd

Discovering what I thought were underwriter

requirements really were not.

It helps to see the process on paper.

It helps to see the process from start to finish.

You can make changes faster when all players are in

the room.

Greater appreciation of the challenges faced by the

production staff.

Amazed at how many ideas came out of this event.

Impact / Difficulty matrix helped prioritize action items.


10

Completed or Implemented Steve

Eliminated requirement of processor signature.

Eliminated cross checking of owner certificates and

commitments.

Analyzed cost benefit of lock box for processing checks.

Email fax system for TGD so processors can pull work

(commitments).

Dedicated commitment processors to reduce task

switching.

Mail processing PO box added to reduce sorting.

Processors manage their own work flow.

Relieved supervisor of opening mail and assigning work.


11

Homework Joanna

WHAT STATUS WHO WHEN

Computer-generate 3 jacket pages and forms.

Write instructions. In Progress Judy 3/1/2007

Define resource loading and rotation schedule to

ensure continuous operations ( cert and

commitment)

Complete Judy Start on 12/20

Outsource final certificate

production (outline plan) Under discussion Linda B 12/21/2006

Eliminate double checking on owner's policy -

training - proofreading - checklist - change

procedure

Complete JoAnna Training ongoing

Analyze cost / benefit of implementing lockbox

process (get check deposit sooner) Complete

Steve

Linda M 1/31/2007

Reroute dedicated FAX # In Progress

Steve

Submit work order by 12/18

Promote - email, application,

update web, for PO Box In Progress Linda B 12/18/2006

Distribute / pull commitments by processors Loyd 12/21/2006

Dedicated PO Box - "Processing for certificates Steve Judy 1/31/2007

Create dashboard metrics and post on display in

work area In Progress Bret Judy 12/19/2006


12

Homework Joanna

WHAT STATUS WHO WHEN

Investigate incentives / appreciation for

performance (DOT, DOR) In Progress Linda M Staff meeting 12/19

emphasize using copy function for converting

commitment to certificate (sent email) Complete

Loyd Judy

Linda M

IT to propose a way to link commitment to

certification electronically In Progress Kerry 1/31/2007

Send memo - encourage less printing of drafts to

review, eliminate signatures Complete Loyd

Standardize "initial working of application"

process step and cross-train Complete Judy

Eliminate signatures by processors Complete Loyd

Establish a future state for a web-based, online,

fully paperless

Kerry Steve

Loyd TBD

Investigate a way to eliminate printing one copy

of application and PTO (2 monitors, software cut

& paste)

Ongoing Kerry 9/30/2007

Communicate to attorneys (or source of title opinions,

ie atty staff) standard title opinion docs and

recommend standard title opinion

Ongoing JoAnna 12/19/2006

Marital status - reminder to mortgage broker, attorney,

lender, abstractor

JoAnna

Linda B 12/19/2006


13

Parking Lot Linda B

Application follow-up calls can be made by the customer throughout the organization

Ensure processors have all they need to process applications

Receive payments electronically

New application form (with email address)

Review scanning process

Work in Process – “Hot team” or other to reduce WIP.


14

Team member experience!


15

We welcome your

questions and comments

iowa finance authority title guaranty division team tg wip · kaizen methodology kerry ......

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