After2008, many Asset Management Companies （AMCs）in China are still experiencing the storm offinancial crisis.

Theproblems are

MostAMCs are facing the excess capacity with the resources in disposingNon-performing Assets (NPA) received from the government and they cannot fullyutilize the resources in achieving the disposal target。

Results:
1. Low disposal rates

2.Low recovery rates

Considerationof background:

Thehistory of development of AMC

Thechange in policy of NPA disposed in China

Solutions:

1.     Capacity management-outsourcing andscheduling

2.     Process management- reliable, lower cost,higher customer satisfaction by information sharing and service Template

A.     Capacity Management:

DevisingCapacity Plans for outsourcing:

Forecastingdemand of NPA required to be disposed

Measuringcapacity – Output

-Activity Mix: change in output

-Difference between design capacity and effective capacity

Utilization – Actual / Design

Efficiency – Actual / Effective

-Evaluateand account for demand fluctuations in terms of seasonal demand

Level capacity Plans

Chase Demand Plans of NPA investment

B.     Scheduling

Classificationof NPA based in Characteristics and levels

B．1 Classification:

-         Sale operations of NPA

Marketing& Sales channels

-         Stages of Marketing and Sales

-         Disposal Announcement

-         Segregation of customers

B．2 Managing NPA by Scheduling of NPA disposalprocess

-         Numbering of NPA

-         Classification of NPA based on the statutoryrequirement

-         Classification on different criterions

n  Amount of loan in Bank

n  Number of borrower

n  Type of Loan

C． Information sharing:

As the NDP operations include a lot ofcustomers, government, debtors and creditors, different professionals and etc.

It’s for the whole operations to beunderstood by each party of the operations; effective provision of servicesrequires people in the operation who understand the idea.

We need to manage the government’sexpectation in order to fulfill the target of clearing the NPL, whatever we areto achieve the level of profits as expected by the investors

Similar to most activities in servicesolution, NPL is a type of activity which is information driven, beginning withfamiliarity with the server and the served. In many (not all), assets havenever been allowed to become dominant, perhaps because of limited capital. Theyare instead using the information they have collected in one business as thebasis in new services.

Manysuccessful problems have strategies in common to other companies are asfollows:

1.     Close coordination of the marketingoperations relationship

2.     A strategy built around elements of astrategic service vision

3.     An ability to redirect the strategic serviceinward to focus on vital employee group

4.     A stress on the control of quality based ona set of shared values, peer group status, generous incentives, and wherepossible, a close relationship with customer

5.     The exploration of information to generatenew business

D． Improvement of service operations

-         Application of service template

Thedevelopment and application of a service template as a diagnostic tool foridentifying opportunities for improvements in the service package.

E． Redesigning and control the redesigned processes

-         Application of Value chain analysis and Focuson CSF of value chain

-         Project management of changing specification(By Phases)

F． Evaluation of the Redesigning NPA process

-         By focused performance，

-         Accounting requirement

-         Client requirement

-         Complaint