Revenue Leakage -Six Sigma?

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    I need to find a six sigma project for work.  I recently discovered that my client service group was not charging for calls in which they verify funds for clients.  Back in 2004, this took a total of 4.6 hours a day…today, it takes a total of 8.1 hours a day.  Can I create a six sigma project out of this?



    Since this one looks dormant, I’ll take a stab to see if I get wheels spinning.
    I think you need to do a bit of investigating and something like this could very well lead to a project with good results.  I would first see if the amount of increase in calls to verify funds has increased accordingly with the time taken increase you are experiencing.  If there is a big gap, ie. the hours/day is not coinciding with the increase in occasions for verfiying funds, then you may have a process issue to investigate and hone in on.  Another thing I would do is explore the technology option of building a system to automate the fund verification, you can then do a FTE to find the break even for implementation of the tech option.


    Adam Bowden

    Sounds like an opportunity there. You will need to translate the data
    into “financial pain” or “financial opportunity”. Is this project or
    opportunity worth $10k per year or $10k per month or $10k per day
    – how much is it worth. If the opportunity is $1,000 per year you
    might look for something else with a bigger opportunity. Regards,Adanm


    Carlos Lozano

    Revenue leakage represents a massive opportunity for Six Sigma Professionals as it is proven that around 2-3% of sales remain unbilled. Dig further as there may be other services that have suffered “scope creep” and what before was 4 hours, now has become 8.
    In general I see various source of leakage
    a) Mistake in price
    b) wrong pricing of prioducts/ services where scope creep happens, people forgot to update things
    c) No billing of products/ services as communications failures happen
    I have made literally millions for my current employer thanks to follow a disciplined approach discovering oportunities in services. I am happy to discuss more in detail if you wish.


    Santosh Kumar

    First of all, what is the reason for increase in the calls? In 4 years the calling hours have almost doubled. You need to figure out the reason for increase in the calls. If your SLA or Business Requirement Document says that this is a requirement and no revenue is attached to it then you have a strong case to pursue a project to reduce the hours. Some things you may want to look at before you jump into a project
    1. Are these outbound calls made by the team?
    2. If yes, Is this team calling during the clients’ business hours? You may have to look at the time of the day these calls are made.
    3. Are they making multiple calls to the same client because they are unable to reach them the first time?
    4 If they are unable to reach the custoemr at the first attempt, can they leave a voicemail or send an email regarding the funds?
    IF these are inbound calls, you need to analyze the reasons for increase in the call volume. It would help if you could add more details about the exact nature of your team’s work.

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