iSixSigma

Metrics for Debt collection

Six Sigma – iSixSigma Forums Old Forums General Metrics for Debt collection

Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • #50623

    RK
    Member

    HI,
    Other than DSO, is there any other good metric in debt collection which can be improved using six sigma? are discreet metrics better in debt collection or continuous metrics?
    thanks
     

    0
    #174251

    Mike Carnell
    Participant

    RK,
    This is similar to having a Quality Assurance group report on quality. DSO is accountings problem generally.
    I have never done this but you may try to quantify the effects on cash flow. That is a metric that most people pay attention to. If they don’t it is one that the CEO will pay attention to and by definition everone else soon will.
    Good luck.

    0
    #174252

    Brandon
    Participant

    RK, DSO is a measure of timing relative to receivables; therefore an important metric.
    Others are: receipt of good funds vs. reprocessing costs of bad funds, notice period re: receipt of good funds – you can’t put money to work elsewhere until you know you have it, currency conversion rates – did you get money in your currency at the rate expected or did you take a hit or a gain, collection costs – how much work did you have to do to get receivable, gap time between delivery of goods/services to invoicing….here’s a few at least.

    0
Viewing 3 posts - 1 through 3 (of 3 total)

The forum ‘General’ is closed to new topics and replies.