Fee Collection projects
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- This topic has 6 replies, 4 voices, and was last updated 20 years, 11 months ago by
Jim Johnson.
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September 16, 2001 at 4:00 am #68728
Jim JohnsonParticipant@Jim-JohnsonInclude @Jim-Johnson in your post and this person will
be notified via email.Hi. I work for a Financial Services organization that charges a fee when payments are received late. Often times we don’t collect these fees mostly because we have never really tried. We have a Black Belt Candidate doing a project at the present time on this issue, however, her focus has been on establishing a process for identifying and collecting the fees (vs. reducing the number/amount waived).It seems to me that if you approach the project from the waiver percent persepctive you are really doing a policy project and not a process one. Hope that this helps.Jim Johnson
0September 16, 2001 at 4:00 am #68731Jim,
Thnaks for the reply.
I to work in the Financial Services Sector. We have the policy in place, however it is the process that is lacking.
Would it be possible to provide the unit and defect definition your team member come up with, along with any ideas on establishing the beneit on an onfoing basis if management decide to not increase any ongoing charged to the client.
Thanks.0September 16, 2001 at 4:00 am #27840I am about to commence a new round of projects and am looking for advice from anyone who may have undertaken a Fee Collection/ Charging Project in the past.
The High level objective of the project is to minimise fee income slippage. Some of these may be “one off” fees and others may be “on going” service fees. I am after guidance in establishing the baseline, as we have various levels authority on who can reduce the actual fees charged against clients.
The unit definition is obviously simple, which is any transaction that generates a fee.
However, would a suitable defect be “any fee that is reduced below the level of authority allowed”. I know this is broad, however varying levels of management can reduce fees by 25%, 50%, 75% and 100%.
Secondly, having established the base line, if executive management decide not to increase the existing service fees for customer satisfaction reasons, then the benefits will only follow through to new facilities that would generate a service fee. Should the benefit be calculated on the “Should Be” service fees, regardless on the management decision made?0September 17, 2001 at 4:00 am #68756Hi Peter,
Our company tracks payments (fees) and we look at the period of time that the payment is outstanding (Days Sales Outstanding – DSO). We usually look at the root cause for a payment not being made in order to determine if a change in our process will contribute to improving the situation. We encounter customers with economic conditions that prevent payment, disputes with customers over goods supplied, paperwork/information incorrect, etc. All of these issues can be examined in light of the process and potential improvements made.
Don0September 18, 2001 at 4:00 am #68774please help me for 6sigma
i am industrial enginner
thanks
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thanks0September 18, 2001 at 4:00 am #68775please help me for 6sigma
i am industrial enginner
thanks
thanks
thanks0September 18, 2001 at 4:00 am #68788
Jim JohnsonParticipant@Jim-JohnsonInclude @Jim-Johnson in your post and this person will
be notified via email.Hi Peter. Sorry that it has taken me some time to get back to you. I am a little busy as you probably well know.
I spoke with the other BB in our organization about our collection of late charges. She defined a defect as any time during a period of time (week, month, etc.) that a percentage of the accounts with late charges on them go uncollected. For example, if we had 100 accounts with late charges this week we would attempt to contact them and get them to pay the late charge within 30 days. At the end of 30 days any of the 100 that remains unpaid is a defect.
This allows you to take an attribute data sample (collected/not collected) and get to a sigma value using DPMO. I hope that this helps.
Jim Johnson0 -
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