Process

What type of product flow do they use?

Because they have medium-volume customized products (savings accounts, checking accounts, CDs, mortgage, home equity and retirement accounts), we consider the product flow is made in a batch operation. These different products and/or services offered to the customers are standard and the customers are batched together taking in consideration their needs.

What type of customer order do they process?

Investors Savings uses a made-to-stock customer order, because it provides a faster service to customers. In a bank there are a few standard products specified by the bank, the process will begin there, then the customer requests a product (for example a checking account) and the product will be available immediately (following the example, starter kits will be provided to them from the inventory at the moment they open the account).

Which cell do they fall into in the process characteristics matrix?

Product-Process Matrix (*click matrix to view in full.)

Investors Savings falls in the middle of the diagonal in the product-process matrix. There are low-medium volume products. And the costumers are batched based on their needs. Meaning Investors Savings Bank would be located where Batch is on the matrix.

What are some of the factors influencing their process selection?

The factors influencing Investors process selection are market conditions, capital requirements, labor and technology. Investors Savings Bank always considers market conditions and the competition in the market, trying to keep relatively better interest rates than the average in the market, offering features like Investors Preferred Banking giving their preferred customers thousands of reward points, extras, free services, higher rates and much more, all because it wants a great relationship with the customers. The expenses incurred in the construction of new branches would be an example of capital requirements. The employees, in the corporate office and in each branch, are the labor factor in a bank. Before assuming functions into the bank, every employee must go through training (depending on the position). Regular employees receive an hourly salary and exempt employees annual salary. Finally, technology is used in Investors in its products and in its processes. Online banking and the ATMs are very good examples of it.

Can they adopt any of the mass customization methods discussed?

Mass customization is possible through http://www.isbnj.com/ where customers can access to their accounts and customize the services the bank offer to them. They are able to check every detailed transaction, link their accounts and make payments online. Online banking is free for the bank customers.

INVENTORY MANAGEMENT

CASH

Each branch has a vault that stores and provides cash to each teller and to the ATM (Automatic Teller Machine). The inventory system used is a continuous review system. The vault manager has to monitor the stock position after each transaction (continuously) and when the stock position drops to a predetermined level, the vault manager will place a fixed amount of cash order. There is only one cash supplier for the bank designated for the Corporate Office. The cash will be received the next day (lead time = one day).

OFFICE SUPPLIES

Each branch operations manager is responsible for the office supplies such as paper, envelopes, transaction slips, binders, pens, pencils, printer ink, stamps, etc. A periodic inventory system is used for office supplies. The stock position of each office supplies is reviewed monthly and an order is placed on-line to achieve a target stock position level. Investors Savings Bank has 4 supply companies (suppliers). Each branch operations manager decides where to place the order. The supplies will be received in between 3 or 4 days depending in the supplier.

Investors Savings Bank

Investors Savings Bank an independent community bank with 47 full-service branches in eight counties of New Jersey, is dedicated to serving the banking needs of New Jersey families and commercial real estate clients. Investors Savings Bank provides personalized and friendly service, products tailored to the needs of its clients, and competitive interest rates. The Bank, which celebrates its 82th anniversary in April 2008, also provides banking services through an Internet delivery channel, http://www.isbnj.com/.
In addition, Investors Savings Bank's Charitable Foundation and dedicated employees support organizations that enrich the quality of life in the communities the bank serves.