Product details

Managers at SKB Banka have a dilemma. A form supplier has provided 200,000 poorly printed cheques which have been distributed to bank customers. As the cheques are being processed on automated equipment at SKB and other banks, inaccurate placement of magnetic ink characters is causing numerous problems. Extra staff and overtime are being used to solve the problems, but it will be some time before the inventory of cheques in customer hands will be consumed. Cheques are one of many document supply items used by the bank. Currently, a 200-page manual is used to define document specifications and control quality. While this is a classic inventory control problem common in manufacturing organisations, it occurred in a bank in this case. To reduce the chance of this problem reoccurring, the cheque processing director needed to review the forms control process at the bank. This case was sponsored by the Indiana University CIBER Case Collection.