Consultancy Report

This consultancy report examines the problem of long turnaround times for SME loan processing in Doha Bank. It identifies key issues such as inefficient policies, lack of employee productivity, and poor time management. The report proposes solutions involving process mapping, employee training, and time and motion studies. It also includes a detailed project plan with cost estimates and resource allocation.

CONSULTANCY
REPORT

TABLE OF CONTENTS
CHAPTER 4: THE PROJECT........................................................................................................1
4.1 INTRODUCTION.....................................................................................................................1
4.2 PROJECT OBJECTIVE............................................................................................................1
4.2.1 SMART objectives.............................................................................................................1
4.2.2 Sub objective......................................................................................................................3
4.3 PROJECT COMPONENTS......................................................................................................3
Project Component 1: Current Situation Analysis.......................................................................5
Project Component 2: Policy & Procedures................................................................................6
Project Component 3: Employee Productivity............................................................................6
Project Component 4: Time Management...................................................................................7
4.3.1 Problem analysis.................................................................................................................7
Project Component 1: Current Situation Analysis.......................................................................7
Project Component 2: Policy & Procedures................................................................................8
Project Component 3: Employee Productivity............................................................................8
Project Component 4: Time Management...................................................................................8
4.3.2 Solution development.........................................................................................................8
4.4 RESOURCE ALLOCATION..................................................................................................11
4.4.1 Team structure..................................................................................................................11
4.4.2 Role of team members......................................................................................................12
4.5 COST ESTIMATE..................................................................................................................14
4.5.1 Cost estimation.................................................................................................................14
4.6 PROJECT OUTPUT................................................................................................................15
4.6.1 Project output and outcome..............................................................................................15
4.7 PROJECT PLAN.....................................................................................................................16
4.7.1 Detailed time plan of activities.........................................................................................16
4.8 SUMMARY.............................................................................................................................18
REFERENCES..............................................................................................................................19

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CHAPTER 4: THE PROJECT
4.1 INTRODUCTION
This underlined project will dealing with understanding of all possible efforts that could
be made in respect of reducing delay in turnover time of SME (ABM explains long turnaround
time for loans disbursement for SMEs, 2018). This will be including all issues in regards to
identifying the operational model of SME bank that are operated in Qatar. It is important as SME
is very critical part in developing and advancement of countries all around the world. There are
many SME which are operating and are essential with regard to innovation and sustainable
development as well. The penetration rate of SME in financial and banking industry is greatly
witnessed with relay on innovation and digital technology. Financial institutions and banks are
emerging in markets like that of Qatar. As per current situation the country is having lowest
financing penetration into SME segment. So this project is focused on identify reasons behind
delays in turnaround time of SME leading process in other words issue in bank. So this part of
chapter 4 will be based on SMART objectives of the project, theoretical frame of components,
resources allocation, cost estimation, project output and outcomes and finally project plan
including timeline and monitoring. Turnaround Time Delay in Small and Medium Loan request
processing in the bank. Nearly 1 month or 1.5 month taken for approving a Loan request by the
bank. So there needs to access the process of loan approval and process flow to introduce
automated loan processing system that is helping in reducing delay in time by 1 day from 2 days.
4.2 PROJECT OBJECTIVE
4.2.1 SMART objectives
It is required to formulate the objectives before starting any project or implementing
requirements of each component. Objective will be leading whole project starting from the
initiation part to the closing that is analysing conclusions from the aim and objective of firm. So
these are generally indicated by SMART goals or objectives which help in calculating the overall
objective of project. The abbreviation for SMART goals will be S- Specific, M- Measurable, A-
Accurate, R- Reliable and T- Timely (Agarwal and Ben-David, 2018). This will be helping
researcher in taking out specified results and conclusions so that objectives can be met in
required time limit. For this particular project implementation of latest technology is planned so
that wastage of time and delay of regular banking operations can be reduced. This will be done in
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specified time frame so that results and outcome are noticed which is in coming 3 months within
Doha bank.
 Introduce a Better SME lending Model by Dec 2018
 Revising SME internal rules & regulations by September 2018
 Improve Staff Efficiency By Oct 2018
 Minimizing of Customer Delays /Complaints by Dec 2018
Specific-
In order to overcome the time taken in all sort of operations of bank in preparation of
paper work or documentation. So in this process online loan approval is one of the best known
techniques that are usually used by banks in current scenario (Citron and Pasquale, 2014). The
objective of implementation of software will help in reducing time taken in operations of Doha
bank. This will also assist in identifying reasons behind delay in time.
Measurable-
The target or objective that is been set will be related to measured and monitored by
regulating a check on reduction in number of customer complaints with amendment of policies
and procedures and time management system as well. Bank need to comply with the compliance
framework as well which is helps in addressing customer complaints and issues against the SME.
So this target which is been set is measureable in terms that number of customer’s complaints
should be reduced and productivity need to be increased and evaluated on regular basis..
Accurate-
The target that is formulated should also be very much accurate so that there are no faults
within the planning and implementation process in coming phase. Accuracy will be defined to as
implementing all changes in correct sense so that there are no faults or leakage that could be
latter on identified. So the implementation is done in way to identify reasons of delay in time all
sort of operations of bank. As the identification of reasons behind delay in turnaround time of
SME leading process of issues within Doha bank will be accurate as well.
Reliable-
All the outcome of project or initiation need to be very much reliable in order to achieve
the aim and objectives to take out what is the reason which is leading to increase in customer
complaints (Dang, Holmström and Ordonez, 2017). So this objective that is set should be reliable
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and must be specific in way to identify reason leading to increase in complaints and process of
company as well.
Timely-
These changes will be done in coming 3 months as it will take time in planning and
implementing all set targets of project. This 3 months’ target has been set needs to be achievable
to lower down the number of complaints. By September and December 2018.
4.2.2 Sub objective
As the target which is set in the previous part which is dealing with excess time taken in
activities of bank so there are some gaps that are discovered for this target. The gap could be like
that of lack of motivation among employees and lack of communication so these are included to
as sub objectives.
 To increase level of motivation among employees so that their performance could be
improved within coming 3 months.
 To increase the communication among whole organisation so that objective is achieved.
4.3 PROJECT COMPONENTS
Within this project that includes various impact of software development in regulating the
time management, policies or procedures and employee productivity as well (DeYoung, Torna
and Winton, 2015). So there is framework for which techniques could be involved for resolving
issue and problems.
3
Current Situation analysis
Policy & Procedure
Employee Productivity
Time Management
Components of project

Components Tools/Techniques
Current Situation analysis SWOT /PESTEEL /FISH BONE
Policy & Procedure Process Mapping
Employee Productivity Training & Developments
Time Management Time & Motion Study
Task Name Duration Start Finish Predecessors
Planning 8 day 3/14/2018 3/14/2018
Selection of location 6 days 3/14/2018 3/16/2018 1
Setting rules and policies 2 days 3/15/2018 3/15/2018 2
Analysing the fund requirements 5 days 3/19/2018 3/22/2018 3,1
Determining the available resources 5 days 3/19/2018 3/23/2018 3,4,1
Recruitment of employees 9 days 3/16/2018 3/22/2018 2,4
Assigning duties 2 days 3/26/2018 3/28/2018 6
Training and development 7 days 3/23/2018 3/30/2018 7
Analysing the bank accommodation
requirements 11 days 3/26/2018 3/27/2018 4,6
Infrastructural facilities 6 days 3/28/2018 04/03/18 10
Installing Hardware 3 days 04/04/18 04/05/18 10,11
Installing Software 2 days 04/06/18 04/06/18 12
Developing Network infrastructure 26 days 04/09/18 04/12/18 13
Designing refurbishments 5 days 04/04/18 04/09/18 11
Installing Furniture 10 days 04/10/18 4/17/2018 11,15
Designing IT supports desk 3 days 4/13/2018 4/16/2018 13,14
Appointment of Local IT supports
representative 8 days 4/17/2018 4/18/2018 17
Analysing the operational practices 2 days 4/19/2018 4/25/2018 18
Discussing the outcomes of performance 2 days 4/19/2018 4/20/2018 17,18
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Project Component 1: Current Situation Analysis
In this current scenario SMEs are playing vital role in terms of sustainable development,
innovation and advancement so that globalisation could be increased and competition is stronger
as well. Banking and financial sector is also developing and growing in market of Qatar where
there are more SME’s operating. Moreover, Qatar is having lower penetration of financial
organisations while there is also very much interference of state to develop the SMEs within
country (Duchin and Sosyura, 2014). According to the current situation of SMEs in country like
that of disruption in technology which is hindering customers and they are having number of
complaints in regard to increase on time of activities. Doha bank is the very first growing
company of banking sector of Qatar which is able to understand the role SMEs that is huge
contributor of development of economy. In this respect Doha bank during the year 2008
launched “Tatweer” that was in relationship with SME.
One of the major issues in this respect will be decrease in speed at which banking
institutions are operating and still not able to achieve excellence in its customer service.
Moreover, banking institution like Doha bank is facing Turnaround Time (TAT) for each and
every activity that is performed in firm. Like time duration for resolving issue of customer,
printing up of their documents, filing them, approval of loan amount then sanction of loan all
these activities or service are having its own time (Gutiérrez-Nieto, Serrano-Cinca and Camón-
Cala, 2016). But huge disruption in technologies resulted in increased in customer complaint
impacted processing and profits of banking institution.
Kipling’s Method
What is the problem? Over time in loan process
When does it
happening?
At time when any loan is been disburse
Where is it happening? In loan department of Doha Bank
Why is it happening? There is shortage of staff, strict policies and procedures of
bank, time consuming activities like those of documentation,
employees are not productive.
Who do you need to get The entire upstream from the inbound officers like SCM, sales
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involved? and finance and loan department.
How can you overcome
this problem?
By installing software which will be helping company to
reduce their work and operations.
Project Component 2: Policy & Procedures
Apart from all these things, there is paper work and documentations that need to be
present before resolving any issues related with customers. At the time when client visits bank
for taking any kind of loan, it is delayed due to number of policies and procedures. All the credit
application needs to undergo many formalities and approval from number of senior authorities
which takes time to approve a loan which consumes maximum time and results in complaints
from customers. So in regard to this senior or higher authority of bank should be make their own
efforts which need to be maintained at adequate level of organisation (Lee, Sameen and Cowling,
2015). Thus, there are many situations when customers complain for delay in addressing their
issues and problems which generally occur due to policies and procedures of bank.
Moreover, there is need in adherence to effective loan policies and procedures that bank
should be following. But then also they could be making their efforts in reducing the time taken
to resolve the issue of public and lengthy policies and procedures as well. As there is doubtfully
credit risk which arise at time of approving loan of clients without identification and verification
of their existence. Nevertheless for this they should be using latest and modern technologies and
software which could help them in lowering down these risk
Project Component 3: Employee Productivity
Every bank and financial institutions are majorly operated and profit is generated by their
employees so bank need to regulate and develop the productivity of their staff. If the productivity
of employees is improved and developed, then this will help company to have reduce chance of
delays within lending process. In this respect bank can use various motivational techniques and
tools so that company could be improving or motivating their employees. Thus, this will increase
productivity of all staff members working within operational framework. This productivity will
determine individual working capabilities and performance to make efforts in increasing profits
and revenue of company.
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Increasing capabilities of employee’s firm is helping themselves in its own way out that
is helping in reducing delay in time taken to conduct all their activities.
Project Component 4: Time Management
This is the most important factor of banking institution that is not allowing company to
perform in way it wants to. All sort of approval and documentation will be based upon time that
is taken to perform each of the activities within banks. There is lot of time which is consumed for
the approval of personal loan which depends on authenticity of information that is given by
customers (Madrian, Hershfield and Rick, 2017). So SME need to adopt many sort of new
technologies in order to reduce time taken in approval of loan processing.
4.3.1 Problem analysis
Project Component 1: Current Situation Analysis
The tools and techniques used to identify what is the problem are like those of PESTLE
analysis which is describing situation of country. The current political situation of Qatar will be
reviewed by using this tool so that continuous positive results could be obtained in order to
minimize the impact on business.
Figure 1: Ishikawa diagram – Cause and Effects
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Project Component 2: Policy & Procedures
For this policy and procedures process mapping tool and techniques could be used which
is enabling the company to identify that which policy is need to map in which part of
organisation.
Project Component 3: Employee Productivity
This could be done using training and development that is given to employees so that
their ability and quality is been improved.
Project Component 4: Time Management.
Time and motion study is the best suited for the management of time in organisation so
that turnaround time is lower down and company is gaining with the decrease of time taken in
each activities.
4.3.2 Solution development
Project Component 1: Current Situation Analysis
For the current situation analysis the solution methods could be used is that of using The
Kipling Method is to ask What When Where, Why, Who and How? In a particular order as a
guide to finding out what was the cause to inefficiencies in inbound bank at present.
Project Component 2: Policy & Procedures
All the policies and procedures must be correct as according to all parts or sections of
Doha Bank so that company is working in desired manner. Within this policy and procedures
process mapping strategy will be used which is outlining all activities undertaking what are the
functions, who will be responsible, how these activities are completed and how success of
business process will be determined as well. This will be mapping up all activities like process
flowchart, functional flowchart and process model. This could also be done using the process
mapping software which will be showing series of all events or activities need to be undertaken
in order to produce the end results (What is Process Mapping, 2018). The main purpose of this
process mapping will be regarded to as improving efficiency of organisation like in case of Doha
bank this process mapping would be used to visualise who all is responsible for the particular
process or task undertaken.
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This will also be providing clear insights of all kinds of process helping teams to use
brainstorming ideas and thoughts and then increasing communications as well. There are various
types of process mapping like:
 Activity process mapping which is representing value adding and non-value adding
activities
 Detailed process mapping which will be providing clear and in-depth study of each and
every step
 Document mapping- which will be those documents like those of output and inputs in
procedures
 High level process is the level of representation that involves process of supplier, input,
process, output and customers (SIPOC) interaction
Figure 2: Process mapping strategy
[Sources: What is Process Mapping, 2018]
Project Component 3: Employee Productivity
All employees must be given correct training so that they are developed for company and
working in good and efficient manner. Training and development will be including to as
increasing ability of employees so that they could be working according to aims and objective of
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company. This will be covering all important aspect of firm in order to achieve all task and
objectives to enhance employee productivity and performance. In order to improve the
productivity of employees of Doha Bank which is one of the most important component bank
need to introduce training and development. This type of solution is best suited for the problem
like that of lack of employees’ productivity as this will be including the overall development of
employees. Training is that program which is helping employees in learning some specified
knowledge and skills to improve performance of their current job profile (What is Employee
Training & Development, 2018). While the development will be wider term that is focusing on
both growth on employee and their future performance not only focusing on the job role. All the
good training and development program which is helping companies to retain their good
employees and then grow profits of bank.
Project Component 4: Time Management.
Figure 3: Time and Motion Study
[Sources: How to Do a Time and Motion Study to Make Real Change, 2018]
Time management is very much important for bank as they need to work according to
their time only. They are having turnaround time (TAT) for each and every activities which is
are not managed will not be allowing them to serve their customers in proper manner. Time and
motion study of time management will be very much effective as per the part of business and
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that of managing all task together as well. All the methods of establishing employee productivity
as per the set standards which is the complex task to be broken into simplified parts of
movements. Managing their time at work according to what is been pre-planned and not wasting
much of their energy is most important task in time management component. So all employees of
Doha bank are required to manage their work so that they are wasting less time and their energy
in not so important task. Making all to do list including what is more important and what is least
is very much important which is been defined in Time and Motion Study by Frederick, Frank
and Lillian.
4.4 RESOURCE ALLOCATION
4.4.1 Team structure
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4.4.2 Role of team members
Each of the above mentioned members of team will be playing very essential role in
carrying important responsibility at time of conducting project which included planning,
initiation or monitoring as well. The role of team member will be decided by the project manager
who is supposed to be leader of whole project so leader would be distributing roles and
responsibility linked to each role to all members of project (Metawa, Hassan and Elhoseny,
2017). There are many team members will participate in project and will their own role and
responsibilities like supervising others, preparing the project layouts and monitoring execution.
Project client-
They are basically the company for whom the project is been conducted or made like in
this context Doha bank would be the client for this project.
Project sponsors-
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Information and
Technology Experts Service Engineers Architect Supervisors
Project manager
Project Client Project Sponsor Financial
Advisors

Sponsors of project are the individuals who are ready to invest money within the project
in order to install and conduct it in successful manner.
Financial advisors-
They will be only giving advice that what amount company need to invest within the
project. Further, the individual will be responsible for sharing risk and profits with regard to
project.
Information and technology-
These employees will be helping in information and technology of the project like how
the technology could help in boosting performance and success of project.
Service engineers-
They are the actual implementers of project who conducts execution of project.
Components Tools/Techniques
Resources
required
Responsibility
Current Situation
analysis
SWOT /PESTEEL /FISH
BONE
senior
management, top
performing
distributors, the
sales
representative, 2
warehouse workers
Service engineers
Policy &
Procedure Process Mapping
system data,
historical sales
records, vehicle for
field study
Supervisors and
management
Employee
Productivity Training & Developments
sales
representative
Information and
technology
Time Management Time & Motion Study
Senior
management, a
sales analyst,
Project sponsors
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4.5 COST ESTIMATE
4.5.1 Cost estimation
Task Name Cost (in $)
Planning 2000
Selection of location 3000
Setting rules and policies 600
Analysing the fund requirements 400
Determining the available resources 1500
Recruitment of employees 2200
Assigning duties 2000
Training and development 19000
Analysing the bank accommodation requirements 26000
Infrastructural facilities 14000
Installing Hardware 80000
Installing Software 60000
Developing Network infrastructure 30000
Designing refurbishments 25000
Installing Furniture 25000
Designing IT supports desk 43000
Appointment of Local IT supports representative 23000
Analysing the operational practices 3000
Discussing the outcomes of performance 49000
408700
The costs mentioned in above table is based on each project member’s basic salary per
month divided by the number of days required for the successful completion of the
recommendations, converted from Qatar Riyal in to US Dollars.
The intended benefits from this project will be a thorough visibility of this current issues
at hand and a practical guide towards correcting the inefficiencies mentioned. Doha Bank will
also gain full understanding in to the business process, value chain and vulnerability assessment
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of their company in particular to in bound bank which is a major bottle neck. Resolving the
issues on in bound bank will iron out many issues downstream leading to greater benefits to the
7 sales companies and customer. This is remove one of the major barriers for the division’s
expansion.
4.6 PROJECT OUTPUT
4.6.1 Project output and outcome
ACTIVITY COMPONENT OUTPUT OUTCOME
1
Situation evaluation
and validation of
information
Report of the full spectrum
of the problem in inbound
bank
Diagnosis, Fishbone
diagram
2 Policy & Procedures Business process flow
charts
Existing situation in
pictorial description
3
Employee
Productivity
Schedule of bank network Risk/Vulnerability of
the network of Doha
bank
4 Time Management Minutes of the meeting Meetings of the
meeting
Components Output Outcome
Current Situation Analysis Less indulging in time
wasting activities
Changes in time taken and
delay in process
Policy & Procedures Less paper work Changes in documentation
Employee Productivity More productivity and
motivation
Increase in profitability of
firm
Time Management Less time taken in
activities
Changes in time in each of
the activity involved
4.7 PROJECT PLAN
4.7.1 Detailed time plan of activities
Task Name Duration Start Finish Predecessors Cost ($)
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Planning 2 days Thu 8/9/18 Fri 8/10/18 600.00
Selection of location 2 days Thu 8/9/18 Fri 8/10/18 600.00
Setting rules and policies 2 days Thu 8/9/18 Fri 8/10/18 600.00
Analysing the fund requirements 5 days Mon 8/13/18 Fri 8/17/18 1 1,500.00
Determining the available
resources 5 days Mon 8/13/18 Fri 8/17/18 2,3 1,500.00
Recruitment of employees 9 days Mon 8/20/18 Thu
8/30/18 3,4 21,000.00
Assigning duties 2 days Mon 8/20/18 Tue 8/21/18 4,5 2,000.00
Training and development 7 days Wed 8/22/18 Thu 8/30/18 7 19,000.00
Analysing the bank
accommodation requirements 11 days Fri 8/31/18 Fri 9/14/18 7,8 154,000.00
Infrastructural facilities 6 days Fri 8/31/18 Fri 9/7/18 8 14,000.00
Installing Hardware 3 days Mon 9/10/18 Wed
9/12/18 10 80,000.00
Installing Software 2 days Thu 9/13/18 Fri 9/14/18 10,11 60,000.00
Developing Network
infrastructure 26 days Mon 9/17/18 Mon
10/22/18 11,12 116,000.00
Designing refurbishments 5 days Mon 9/17/18 Fri 9/21/18 12 $25,000.00
Installing Furniture 10 days Mon 9/24/18 Fri 10/5/18 12,14 $25,000.00
Designing IT supports desk 3 days Mon 10/8/18 Wed
10/10/18 14,15 $43,000.00
Appointment of Local IT supports
representative 8 days Thu 10/11/18 Mon
10/22/18 15,16 $23,000.00
Analysing the operational 2 days Tue Wed 16,17 $49,000.00
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practices 10/23/18 10/24/18
Discussing the outcomes of
performance 2 days Tue 10/23/18 Wed
10/24/18 17 $49,000.00
Figure 4: Gantt Chart
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Figure 5: Gantt Chart
Figure 6: Network diagram
4.8 SUMMARY
From the above part it is concluded that there every bank has specific process of loan
which comprise, analysis of prospective loan client, evaluating individual’s sincerity and
character which derives one's ability to repay. This reduces the risks of credit management.
Issues related to loan approval, in present time arise in small medium businesses who are
accepting new application and request for business related activities for processing faster than
other companies in order to secure their business interest related to profits and revenues.
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REFERENCES
Books and Journals:
Agarwal, S. and Ben-David, I., 2018. Loan prospecting and the loss of soft information. Journal
of Financial Economics
Citron, D.K. and Pasquale, F., 2014. The scored society: due process for automated
predictions.Wash.L.Rev. , 89, p.1.
Dang, T.V., Gorton, G., Holmström, B. and Ordonez, G., 2017. Banks as secret keepers.
American Economic Review,107(4).pp.1005-29
DeYoung, R., Gron, A., Torna, G. and Winton, A., 2015. Risk overhang and loan portfolio
decisions: small business loan supply before and during the financial crisis. The Journal of
Finance, 70(6), pp.2451-2488.
Duchin, R. and Sosyura, D., 2014. Safer ratios, riskier portfolios: Banks׳ response to government
aid. Journal of Financial Economics, 113(1), pp.1-28.
Gutiérrez-Nieto, B., Serrano-Cinca, C. and Camón-Cala, J., 2016. A credit score system for
socially responsible lending. Journal of Business Ethics, 133(4), pp.691-701.
Lee, N., Sameen, H. and Cowling, M., 2015. Access to finance for innovative SMEs since the
financial crisis. Research policy, 44(2), pp.370-380.
Madrian, B.C., Hershfield, H.E., Sussman, A.B., Bhargava, S., Burke, J., Huettel, S.A., Jamison,
J., Johnson, E.J., Lynch, J.G., Meier, S. and Rick, S., 2017. Behaviorally informed policies
for household financial decision-making. Behavioral Science & Policy, 3(1), pp.26-40.
Metawa, N., Hassan, M.K. and Elhoseny, M., 2017. Genetic algorithm based model for
optimizing bank lending decisions. Expert Systems with Applications, 80, pp.75-82.
Online:
ABM explains long turnaround time for loans disbursement for SMEs. 2018. [Online]. Accessed
thourgh: <http://www.thesundaily.my/news/2018/03/23/abm-explains-long-turnaround-
time-loans-disbursement-smes>.
What is Process Mapping. 2018. [Online]. Accessed through:
<https://www.lucidchart.com/pages/process-mapping>.
What is Employee Training & Development. 2018. [Online]. Accessed through:
<https://www.allencomm.com/what-is-employee-training-development/>.
How to Do a Time and Motion Study to Make Real Change. 2018. [Online]. Accessed through:
<http://blog.idonethis.com/how-to-do-a-time-and-motion-study-to-make-real-change/>.
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