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Topic Need Project Ideas for Accounting/Finance

Need Project Ideas for Accounting/Finance

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This topic contains 6 replies, has 1 voice, and was last updated by Avatar of Rick R. Rick R. 12 years ago.

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  • #32352

    If anyone has done Six Sigma GB or BB projects in the Accounting or Finance areas please give me a brief overview of the project or just give some simple input on project ideas in those areas.  It is much appreciated.  Thanks.
    John

    #32364
    Avatar of 6 Sigma BB Coordinator
    6 Sigma BB Coordinator
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    GB projects in Finance Dept. we had done are :
    1. Reduce DSO
         Find solutions to reduce DSO
    2. Reduce credit note
         Reduce errors cuasing high credit note
    These are of my experience.
    Hope this helps
    Six Sigma Black Belt Coordinator

    #32369

    Would be interested in hearing a little more about your organization regarding accounting functions.  I am heading up the same at my company.  We have worked on lead times, mapping all functions to find non value items, held Kiazens and so far are in 7 figures for savings.

    #32372

    Project Ideas – talk to the consumers of the business processes within Finance / Accounting & see how well their needs are being met.  I’ve observed that frequently there is a disconnect between the outputs of these processes and what’s of interest to the (internal and expternal customers).  For example, lots of effort expended on rerports that are no longer used by management.
    Projects – 1.  Cycle time on monthly close; 2.  Reporting structure to various layers of management; 3.  Processes for entering sales orders; 4.  Processes affecting DSO – average and outliers; 5.  Processes for managing credit investigations for customers;  Processes affecting cash payments to vendors / suppliers. 
    Lots of opportunities here.  Sit down with the Customers and Suppliers to these processes and brainstorm what’s important for these processes, problem areas, and then prioritize.  Unless your company is unusual there won;t be any shortage of promising leads.

    #32373

    John,
    The best person I have ever seen on transactional projects is a guy named Rob Tripp. He recently left consulting for private industry. If you email me I will give you his email address. He sould be able to help.
    SixSigmaAp@aol.com
    Good luck.

    #32378

    HandySoft has done some work in the Finance area around six sigma at a few companies to reduce DSO – ( from 65 -30 or less days) as well as accounts payables ( reducing to 15 or less days to take advantage of discounts from vendors).  I will be more than happy to share any information that may be helpful.
     

    #32384

    I’ve had several opportunities to work in AP/AR/GL areas.  I’ve listed below some areas you might look into:
    1)  The entire sales order to cash process.  Look at cycle times from when an order is received until the money is collected.  You’ll find opportunities in sales order/sales force efficiency, order entry, handoffs to manufacturing, shipping, distribution, and after it shipped, you’ll get into the accounts receivable area.
    2)  I recommend you examine the cycle time between handoffs in the SIPOC mapping process.  Then focus on reducing the variation and the cycle times in those processes.
    3)  Also look at calculating the cost per transaction.  Don’t be surprised to find the cost per transaction in the $180 to $200 per.  Then multiply that by the number of transactions to get a cost for that process.  Then, determine ways to reduce the cycle time and the cost per transaction.
    4)  I have also worked on external six sigma opportunites with our customers…again to reduce the cost per transactiona and cycle time per transaction. 
    5)  Look at the cost per…sales order, purchasing, A/R is usually very beneficial
    6)  You’ll likely get into IT/IS improvements designed to facilitate further cycle time and cost per reductions. 
    7)  Big benefits include reducing order to cash process, the sooner its entered the quicker we get paid.  You can also factor in “lost interest”  although this can be “tricky.”
     
    I hope this helps get you going.
     
    Regards,
     
    Rick R. MBB
     
     

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