Production and Operations Management | Master in Business Administration

1. The First National Bank of Chicago’s
Quality Program
Analyn A. Arienda
Twinkle C. Constantino
MBA – Operations Management

2. BACKGROUND OF THE CASE STUDY
The First National Bank of Chicago was
founded in 1863, the 11th largest and holding
company and the 10th largest bank in the Midwest.
It is the oldest and largest national bank operating
under its original name and charter. This company
has 13,000 employees working world wide and its
common stock is listed on New York, Midwest,
Pacific, London and Tokyo exchanges and it has
11,700 shareholders. The 57 offices worldwide are
organized in to three business areas.
These are global corporate banking,
consumer banking, and
middle market banking.

3. First National Bank of Chicago believe that
focusing on providing quality services would be the
buying determination in the non-credit industry, with
this principle by 1981 First National Bank of Chicago
position itself as the quality provider of corporate cash
management services.
In 1971, the required
return of the banking industry
has been on the decline, if the
bank wants to stay alive, it must
change its business mix, pricing,
and or cost.
altering its organizational framework and separate
strategic business units were created.
The bank begins the quality process by

4. TIME CONTEXT
VIEW POINT
ALETA HOLUB
Vice President for Quality Assurance
1981onwards

5. STATEMENT OF THE PROBLEM
How First National Bank
of Chicago will be able to
maintain being the quality
provider of corporate cash
management service?

6. OBJECTIVES
SHORT RANGE
To be a competitive working
environment that promotes growth,
motivation, and job satisfaction to its
employee.
LONG RANGE
To be the best bank in the non-
credit services business.

7. AREAS OF CONSIDERATION
STRENGTHS
The bank already positioned itself as the quality
provider of corporate cash management services.
Conducts weekly performance meetings and
forum
Eager to attain customers satisfaction

8. STRENGTHS
Different strategies in improving
employee’s performance are implemented.
(Min. Acceptable Performance (MAP), Goals for exceptional
performance, Weekly performance measuring system, Behavioral
Engineering Systems Training (BEST), walk an extra mile, and
honor group)
Continuous recognitions,
benefits, and certificates are
given to employees.

9. WEAKNESS
Inaccurate and incomplete information
Delays in service and processing time
Poor performance of employees
Problems affecting department’s
productivity

10. OPPORTUNITY
The company is known worldwide and
recognized as quality provider of corporate cash
management
Through continuous development attainment
of business excellence is achievable
Enhance quality of service can definitely
increase profit and savings.

11. THREATS
Return on equity of the banking
industry has been decline
Customer’s expectation and standards
are constantly rising
Customer’s expectation and standards
are changing
Many competitors

12. ALTERNATIVES COURSES OF ACTION
ACA1: Proposing a seminars, open forums and
events for the customers
Advantages:
 The customers will see the good quality of the company.
The customers will know if they are really fulfilling a quality corporate cash
management services.
 The customers will have an open communication with the company.
 The company will gain the trust and loyalty of the costumers.
 It will give them more opportunities in the future after given positive.
 The costumers will gain favourable results.
The customers will see the efficiency of the bank in responding to their demands
and to negative issues.

13. ACA1: Proposing a seminars, open forums and
events for the customers
Disadvantages:
The company needs additional fund and expenses in proposing the program.
It will be very time-consuming for the company to entertain the customers
every now and then and also give all of them ample time to assess the customer’s
concern.
The privacy of the customers is at risk because of the information they
provide in response to customer satisfaction.
 The chance that customers will expect too much from a seminar and thus be
disappointed.
ALTERNATIVES COURSES OF ACTION

14. ALTERNATIVES COURSES OF ACTION
ACA2: Recognizing the potential leaders by
making them a team.
Advantages:
The recognition of potential leaders by making them a team will inspire them to
work at its best.
The potential leaders will gain confidence and trust.
The recognition of potential leader by making them a team will become an asset
of the company.
It will develop teamwork.
It may stimulate performance and attendance.
Communication and information exchange may be facilitated and increased.
New approaches to tasks may be discovered.

15. ACA2: Recognizing the potential leaders by
making them a team.
Disadvantages:
The employees that are not part of the team will not be able to show their
skills in doing their work.
The employees that are not part of the team will create issues such as
favoritism and politics.
Evaluation and rewards may be perceived as less powerful.
Some employees may experience less motivating jobs as part of a team.
Conflict may develop between potential leaders and other employees.
Some individuals are not compatible with team work.

16. ALTERNATIVES COURSES OF ACTION
ACA3: Training programs and education for
the employees
Advantages:
It will help them improve the performance of the employees and
increase the chances of obtaining promotions.
The employees will identify their weaknesses and strengths.
The employees will gain confidence.
The employees will see the efficiency of the bank in responding
to the employee’s issues impacting their business operations.

17. ACA3: Training programs and education for
the employees
Advantages:
The costumers will be satisfied to the service they provide
because employees are doing well in their job.
The company will receive a good feedback from the costumers
because employees are doing well in their job.
It will help the employees to take the benefit of the rewards
systems and incentives available in the company.
It will teach the employees on how to do their work but also
trains him to work as a part of the group

18. ACA3: Training programs and
education for the employees
Disadvantages:
The company needs additional fund and expenses in proposing
the training program.
It will take a lot of time to refine their skills and abilities.
If the employees are not willing and ready for the training, it
might cause complain and several issues.
Scheduling issues can make it difficult to arrange for training.

19. RECOMMENDATION

20. PLANOFACTION
CONFERENCE & FORUMS
JOB AIDS
SEMINARS & WORKSHOPS

21. PLAN OF ACTION
PERFORMANCE APPRAISAL
TEAM BUILDING

22. GANTT CHART
ACTIVITIES
TIME FRAME
2015 2016 2017 2018
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
RESEARCH &
ASSESMENT
IDENTIFYING
DEVELOPMENT
ACTIVITIES
* Job Aids
* Conference and
forums
* Seminars &
Workshops
* Performance
Appraisal
* Team Building
IMPROVED WORKING
SYSTEM
MEETING EMPLOYEE
SATISFACTION
MEETING CUSTOMER
SATISFACTION
QUALITY SERVICE
ACQUIRED

23. "An empowered organization is one in which
individuals have the knowledge, skill, desire, and
opportunity to personally succeed in a way that leads to
collectiveorganizationalsuccess."
Stephen Covey