Gyan Repository

Reliance Capital Ltd | Operations and Customer Service: A Journey from Cost Center to Profit Center |
Case Studies   »  
(October 16, 2018)

Abstract :
Traditionally, Operations and customer service departments have been looked at as back
offices that are transaction oriented focusing on trying to get the job done as quickly and
cheaply as possible. They are seen as Cost Centers, a liability eating into the bottom-line. This
conventional cost-centered model of Operations & Customer Service strives to achieve the
minimum per unit transaction cost, with all the KPIs and targets of the teams set accordingly.
The purpose of this project was to challenge this general notion. It started with challenge the
status quo mindset – thinking beyond mere transaction processing.
We aimed at a new philosophy of seeing each transaction as an opportunity for generating
income and in the process transform ourselves into a Profit center. Thus, the project was named
as Journey from Cost Center to Profit Center. The team stated looking at each transaction, as
an opportunity to generate revenue and build a relationship. Quality tools like Lean Six Sigma,
Brain Mapping, Process Reengineering were used to innovate and bring about the change.
Various Lean Sigma projects and Idea Express innovations were undertaken which helped us
achieve our goals. During the course of the project we mapped the operation teams budgeted
costs with the revenues generated through various initiatives with an objective of achieving a
Over the period of the project, the initiatives taken through the project gave sizeable results.
Within the first eight months, the generated revenues (contribution to bottom-line) were touching
97% of the budgeted costs.


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