Lean Service and Process Sustainability in Small-Branch Banking: A Value Stream Mapping Analysis of Credit Administration

Abstract

This study examines inefficiencies in the credit administration process at KCP Bank X Surabaya, as indicated by a deviation in the Service Level Agreement (SLA) from the target of three working days to an actual lead time of five to seven working days. This condition is influenced by uneven workload distribution, the absence of dedicated credit administration staff, and a process that remains manual and unstandardized. The study aims to evaluate operational efficiency and process sustainability through a lean service approach. A qualitative case study design was employed, using workflow observation, semi-structured interviews, and internal document analysis as data sources. Data were compiled based on realistic simulations derived from the actual range of 5-7 working days. The analysis was conducted using Value Stream Mapping (VSM), waste classification, and the Ishikawa diagram. The findings show that the main bottlenecks occur in document verification, authorization escalation, and file rework. The dominant wastes waiting, rework, motion, transportation, and overprocessing extend lead time and increase staff workload. The study highlights that efficiency in small-branch banking depends not only on faster work completion, but also on a stable, standardized, and sustainable process design.