Maybank Operations Management: Strategic Objectives and Analysis

This report provides a detailed analysis of Maybank's operations management, evaluating its processes, strategic objectives, and competitiveness within the financial services industry. It examines Maybank's existing operations and quality management processes, assessing their success in achieving strategic goals. The report explores various tools and techniques, including FMEA and Six Sigma, to enhance organizational objectives and competitiveness. Furthermore, it delves into the role of information management systems and artificial intelligence (AI) in improving overall business operations, while also addressing potential challenges associated with AI implementation. The report concludes with recommendations for Maybank's future operations and includes supporting materials such as network diagrams and PERT charts.

Running head: OM
Operations Management: Maybank
Name of Student
Name of University
Author Note

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Table of Contents
Assignment Task 1..............................................................................................................3
1. Executive Summary.....................................................................................................3
2. Introduction to Maybank.............................................................................................3
3. Evaluation of the success.............................................................................................5
3.1. Success of existing Operations Management process..........................................5
3.2. Success of existing Quality Management Processes............................................7
4. Tools and Techniques for achieving Organizational Objectives and Competiveness.8
4.1. Tools of Operations Management........................................................................8
4.2. Use of FMEA and 6 Sigma...................................................................................9
5. Information Management System in enhancing overall business Operations...........11
5.1. Analysis of the role of ICT applications in Operations Optimization................11
5.2. Operational strategies in gaining competitive Advantage..................................13
6. AI in enhancement of overall business operations....................................................15
6.1. Challenges organization may face......................................................................17
7. Conclusion and Recommendations............................................................................17
References......................................................................................................................19
Assignment Task 2............................................................................................................23
Answer 1: Network Diagram.........................................................................................23
Task 2: PERT Chart.......................................................................................................26

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Bibliography..................................................................................................................28
Appendix........................................................................................................................29
Appendix 1: MS Project File.....................................................................................29
Appendix 2: PERT Chart (MS VISIO File)..............................................................29

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Assignment Task 1
1. Executive Summary
The objective of this report is to evaluate the operations management process of
Maybank to reflect on the reforms that the company needs to bring about in terms of managing
the daily business operations. Operations management (OM) can be described as a supervision of
the business processes that is used for creation of maximum level of effectiveness within an
organization. The process of OM within a business is mainly associated with transforming
materials and labors into services and goods in an efficient manner so as to increase the business
as well as the organizational profit. Thus, the process of management of the creation of goods
and services can be termed as OM. In the following paragraphs, the operation management
process of Maybank is discussed to evaluate the competiveness of a business and the key tactical
objectives of the organization. The existing OM process of Maybank is evaluated to explore the
existing and long term resolutions to the issues that the firm is facing. The report further
evaluates the tools and methods that can explicitly contribute in accomplishing the objectives of
the financial institution and competitiveness as well. The report has provided a brief overview of
the process in which information management and the use of artificial Intelligence (AI) can
actually improve the general business operation. However, implementation of AI is subjected to
facing certain key challenges. The report evaluates the challenges that Maybank might face with
the implementation of AI.
2. Introduction to Maybank
Maybank is Malaysia’s principal bank measured by market capitalization and its total
assest exceeed US$165 billion. It is the major public listed banks on Bursa Malaysia and has a

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market capitalization of US$19. The bank was founded by Malaysian business tycoon Khoo
Teck Puat and Oei Tjong le in the year 1960 (Malaysia, 2020). The bank grew rapidly within
three years of its start.
The bank operates on an international network and currently has greater than 2400
branches and workplaces in 20 different countries. The employee count of the bank is more than
45,000. It provides commercial banking as well as personal banking amenities to the client.
The organizational objectives that can be connected with the quality process and
business operations is the objective of providing world class services to its customers. It aims in
building strong relationship with the customers. Maybank is the leader of Malaysia’s regional
financial service leader. The bank is currently providing service to 22 million customers on its
international network. Therefore, quality administration is one of the crucial processes linked
with the operations of the organization. Management of the quality processes within the
organization is necessary to address the customers’ demands and is also necessary for providing
quality services to the clients. In order to sustain its place in the world market, Maybank
prioritizes the desires and the demands of the clients. The feedback of the customers are
considered to be the basis of bringing reforms in the internal operations of the organization. The
business operations of the Maybank involves effective investigation of the demands and the
needs of the clients so that financial service of high quality is being delivered to the customers of
the bank. The key operations of the organization include providing 24 hours support to the
customers (Malaysia, 2020). The 24 hours service is an effective business operation that
guarantees customers’ satisfaction. It is the largest financial service group and therefore has a
huge customer base (GOI, 2014). The effective customer support that is offered increases the
customers’ satisfaction and improvement of the customers’ satisfaction is prioritized.

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The Mission of Maybank is to refine the financial services by giving the customers a
expedient access to banking. The bank aims in obligating fair terms and pricing to improve the
client’s satisfaction. The bank is known to provide helpful advice to the customers on basis of
their needs. The key processes involve effective team work, growth, integrity, efficiency and
excellence. It helps in building relationship with the customers (Malaysia, 2020). Maybank has
the responsibility of safeguarding its integrity and credibility and therefore further technological
advancements are needed. Further technological advancements can help Maybank in improving
their services such as offshore banking, factoring, asset management, stock broking, internet
banking and others. The bank is successful in providing all the mentioned services to its
customers, however, with further technological advancements, the existing services of the bank
can be further improved.
3. Evaluation of the success
In this section of the report the success of the operation managing process and the quality
administration process of Maybank for achieving the organization’s strategic administration
purposes are discussed. The evaluation of the prevailing OM process and the quality
administration process of Maybank is necessary to identify the challenges that the company is
facing (Goi, 2016). On evaluation of the OM process and the process of managing the quality,
the need of improvement in the current operations of Maybank can be identified.
3.1. Success of existing Operations Management process
Operations management can be described as the process of administration of the different
business practices with an aim of increasing the efficiency of all the work processes running
within the organization. Maybank has been successful in offering a range of services and

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products to its customers. In the following sections, the operation management process of
Maybank and its related activities are evaluated.
Group Operations’ Strategy: Several initiatives are taken for centralizing, regionalizing and
streamlining the key processes of Maybank. This is related to the main banking operational
activities include payments, self-service terminals, trade operations and credit administration
(Tan, Hamid and Chew, 2016). The operational excellence and Lean initiatives are further taken
to ensure smooth organizational operations.
Operations and Productivity: Maybank group has always focused on enhancement of the
operations to increase the production of the organization. Effective leadership has enabled the
company to boost their plan of regional growth. The definitive goal of the Company is to become
the financial leader in Malaysia and the bank, to quite extent has been successful in achieving the
same. Maybank has become an undisputed leader in retail financial service (Mahdzan, Mohd-
Any and Hamzah, 2017). Maybank intends to reinforce the leadership position by their customer
value proposition. Maybank is the leading ASEAN wholesale bank that aims in growing to India,
Middle East and in China as well. This is a part of the strategic initiative of the bank.
The operations team of Maybank has made several efforts for expansion of its
capabilities towards betterment of the customers’ experience, streamlining the processes and
centralization of the entire system. It make use of a centralized collateral management system
that provide a framework for proper management of the collateral information of the
organization. Apart from that, the payment support and ATM services are merged into a single
unit that enables streamlining the Lean operations. Thus, it can be said that effective measures

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are taken to by the financial institution to increase its productivity to a maximum extent so as to
fulfill its strategic initiatives.
The operations of the organization further include straight through processes of the
customers’ orders and request and reduced downtime for resolving a query (Fai, Siew and Hoe,
2017). This ensure that a service of top most quality is provided to the customers. In short, it can
be states that Maybank has been successful in managing the key business operations in an
effective manner.
3.2. Success of existing Quality Management Processes
Effective management of service quality is an important need of an existing business
processes. Proper quality management of the product and services is necessary to increase
customers’ satisfaction. The strategic initiative of Maybank involves expansion of the bank to
several other countries and for that improvement of the customers’ service becomes a necessity.
The bank is known for its efficient customer service (Krishanan, Khin and Teng, 2015). The
queries of the customers are resolved effectively and the customers are able to reach to the
customer support service of the bank 24*7. The quality management process of this bank is a
success as the customers’ feedbacks are dealt with utmost priority till their queries or concerns
get resolved. The quality management process in Maybank is quite effective in fulfilling the
demands of the customers.
Each branch of Maybank has a dedicated quality management support executive that
supports the collection and recovery by performing the routine administrative tasks including the
data management, document distribution and management of the customers’ queries and
customers request related to loans and bank statement (Poh, Kilicman and Ibrahim, 2018). The

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support executive is further responsible for facilitating the accurate document preparation for
claim documents, proof of claims and other (Halim et al.,2015). It further helps in maintaining
an accurate and organized collection files and calendars to provide timely services to the
customers.
As a part of the quality management process, the feedbacks of the customers are regularly
evaluated to address the factors that can result in customers’ disappointment. The customers’
management process is prioritized as a part of the quality management processes running within
the organization (Mahdzan, Mohd-Any and Hamzah, 2017). Global monitoring process is
enforced within each branch to guarantee that the expected quality of the services and product is
achieved. The accomplishment of proper quality management in Maybank has contributed in
gaining the position among the topmost 5 banks of South East Asia. However, several reforms in
the quality management process are needed to be brought to further improve the level of
customers’ satisfaction (Tan, Chew and Hamid, 2017). Since the bank is committed in delivering
services of higher level of excellence and efficiency, improvements in the existing process of
quality management is needed to fulfill the long-term organizational goals.
The key challenge that the bank is facing is related to handling of large number of clients’
request and queries. The process is linked with the key strategic objective of further expansion of
the bank to other countries (Sukmaningrum et al., 2018). The flexibility of the quality
management process are needed to be improved to ensure that the long term objectives of the
organization are met.
4. Tools and Techniques for achieving Organizational Objectives and Competiveness
4.1. Tools of Operations Management

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The use of effective OM tool helps in accomplishing the organizational objectives and
competitiveness in Maybank. Maybank ensures that products and services of high quality is
delivered to the customers.
One key technique that is used for effective operations management in Maybank is
Quality Control and Inspection. It is an effective need of providing quality services to the
customers (Haque et al., 2014). The tool used in effective quality control and inspection
involves the use of control chart. This tool is a simple visual tool that is used for monitoring
whether the key processes and operations of the bank are running as per the expectations. The
control chart is useful in scenario that involves inspection of the global business processes and
the services that are provided to the customers.
Another tool that Maybank uses to ensure that organizational objectives are fulfilled
include the effective use of process flow diagram. This operation management tool is a key for
enforcing continuous improvement within the organization (Jie et al., 2016). The process flow
diagram helps in designing the competitive strategy in an effective manner by easily identifying
the processes that are needed to be improved. The process flow diagram helps in management of
key operations of the Malaysian branch of Maybank and this tools ensure top notch customers’
satisfaction in the bank.
4.2. Use of FMEA and 6 Sigma
4.2.1. FMEA
Failure Mode and Effect Analysis tool is used in identification of the cause of problem.
This tool is widely used in Maybank on a global context. This control tool is mostly used by the
bank to identify the things that can certainly go wrong while providing services to the customers

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(Bhuvanesh Kumar and Parameshwaran, 2018). The effective identification of the failure modes
is necessary for Maybank to manage the processes on a global context.
With the use of this particular tool, Maybank identifies the key areas of improvement by
identifying the risks that can affect the normal implementation process. With the help of this OM
tool, the failure mode is correctly identified and is ranked on basis of its impact on the global
operation of the bank (Stevenson and Sum, 2014). From that the risk priority is calculated which
in turn helps in prioritizing the critical failure modes. FMEA therefore has a critical role to play
in management of overall business operations of Maybank and contributes in improving the
overall business process of the bank.
4.2.2. 6 Sigma
6 Sigma is another effective tool that provides the organization an opportunity of
improving their key business processes. This is achieved by decreasing the process variation of
the internal processes within the organization, which in turn leads to reduction of the defects and
in improving the profit of the employee (Sutrisno et al., 2016). The key principles of 6 Sigma
are Recognize, define, measure, analyze, improve, control, standardize and integrate.
The 6 sigma is a statistical and data driven approach that aims in continuous
improvement. Continuous improvement is the key business strategy of Maybank and therefore, it
can be said that the bank shows correct usage of 6 Sigma in managing the key business
processes.
6 Sigma is widely used in operations management in domestic context by enforcing the
process of continuous improvement (Drohomeretski et al., 2014). The feedback and the
suggestion of the customer is investigated in an effective manner to ensure that the improvement

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in the processes are enforced in an effective manner (Evans and Lindsay, 2014). Through this
process, the standard deviation in the expected quality of service is measured and accordingly
effective measures are taken to address the issues.
The proper and effective use of these operations management tools has enabled the
organization to achieve a strong position both in domestic and global context. Adoption of newer
operation management tools can however be recommended to further improve the business
operations of the organization.
5. Information Management System in enhancing overall business Operations
Information management can be described as a process of collection, storage,
dissemination and destruction of information (Fountas et al., 2015). Effective information
management is needed to enable a team and the stakeholders to take effective decisions.
Information management contribute to providing relevant information to the decision makers.
The information management process within an organization is therefore an important
organizational needs related to decision making (Le and Viviani, 2018). Effective information
management further helps in increasing the efficiency of the organizational processes. The
presence of an information management system therefore helps in increasing the general
business processes and business efficiency (Drigă and Isac, 2014). ICT applications has a
noteworthy role to play in management of the various operations within the organization.
Operational strategies related to the use of ICT are therefore needed to be designed in an
effective manner to ascertain that competitive advantage within the organization is achieved.
Proper management of the ICT services within an organization is necessary to achieve
competitive advantage.