iSixSigma

Project in finance department

Six Sigma – iSixSigma Forums Old Forums Finance Project in finance department

Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • #24453

    harbo
    Participant

    Can anyone suggest me project examples in finance department?

    0
    #58676

    Bart
    Participant

    You have to find out what kind of problems there are in your finance department.

    0
    #58677

    Clueless Bart
    Participant

    Another brilliant response from our good friend Bart.

    0
    #58678

    Sayyed
    Participant

    A popular example is a Purchase Ledger / Account Payable situation.
    Problem
    Suppliers not paid on time.
    Issues
    Invoices not clearing for payment because:
    – No Purchase Order
    – Wrong Customer
    – No Goods Receipt
    – Incorrect Price / Quantity / Item / Currency
    Following through causes will invariably unearth issues in Finance and Non Finance areas of the business.
    It’s often a good place to start because even in a very poor situation there will be some invoices which clear more efficiently than others; there is unsuallly a strict process laid down by the accounting system  and it shows the flow of activity between finance and the core business.
    Well I think it’s a good example of a common problem area.
     
     
     
     
     

    0
    #58680

    joan
    Participant

    Ok we have a problem identified
    Now I have to measure the outcome
    Number of invoices issued incorrectly as a procentage of the invoices issued correctly.
    Were are my opportunities?
    What is my sigma if the relation is 5 to 10?
    How do I calcualte it?

    0
    #58683

    J Castagna
    Participant

    Hi All … Hope this helps
    A) Problem identified….
    Are you really really sure you have all the customer CTQs?
    B) Now I have to measure the outcome
    What characteristics are you going to measure? Consider attempting Measurement Systems Anaylsis (MSA)….(I’ve neglected to do this step properly in the past and it has cost me months! ) This will ensure integrity in your results.
    C) Number of invoices issued incorrectly as a percentage of the invoices issued correctly./ Were are my opportunities?
    Consider calculating a your Invoice DPMO as opposed to a normal percentage…(Though DPMO it can be expressed as a %)
    As an example….An Invoice can can be either be Correct or Incorrect…
    An invoice can be considered 1 unit….And each unit can have many opportunities for a defect
    Each invoice has many Opportunities/Characteristics that may be used to determine if the invoice is incorrect/defective.
    ie Customer Name; Customer Address; Regulatory requirements (eg registration numbers); Items purchased, $ value of items purchased; discounts applied if applicable; greetings; information blurbs etc
    Additionally; consider invoice related items such time to create invoice, time taken to send out after sale, follow up on invoices after send out…..the list goes on.
    These characteristics may help you determine what is a defective invoice…For instance you may decide an incorrect greeting does not necessarily make an invoice defective but incorrect customer name does.
    D) What is my sigma if the relation is 5 to 10? & How do I calcualte it
    As noted above… Are you looking at a percentage or DPMO?
    If you have a DPMO and convert it to a percentage of 50%….then your sigma value is 1.5.
    You can calculate it by using a) the formula (located elsewhere on this site); b) by using a process sigma Conversion Table…. (Just google it!) or c) use the sigma calculator on this website.
     
    Hope this helps
    Cheers
    Justin
     

    0
Viewing 6 posts - 1 through 6 (of 6 total)

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