iSixSigma

Transactional Project – Intercompany Accounts Payable

Six Sigma – iSixSigma Forums Old Forums General Transactional Project – Intercompany Accounts Payable

Viewing 5 posts - 1 through 5 (of 5 total)
  • Author
    Posts
  • #27349

    Anonymous
    Participant

    I am working on a transactional project in Intercompany Accounts Payble where we are having a problem with getting quality invoices from our suppliers on a timely basis. Since the suppliers are within the company, they get their money through an intercompany clearing account and then send an invoice. I am trying to improve the length of time it takes to match up these bank charges to the invoices we receive.

    Any thoughts on how I can improve this process with this problem other than putting in a measurement system to monitor and report on the problem?

    0
    #66792

    Ted
    Member

    Modify the system so that suppliers don’t receive payment until their invoices are submitted. You’ll be amazed how improved your cycle time will be!

    As you progress towards the new system, don’t forget about technology. Electronic invoices will allow you to automatically match up and potentially pay electronically, thereby reducing administrative function responsibilities and errors.

    Ted

    0
    #66802

    Joy
    Participant

    If you don’t put in a measurement system to monitor the problem, how do you really know what the problem is? Have you done any of the basic quality tools (mapped the process, fishbone diagrams, FMEA) to determine root cause? Do you even know what you should be measuring. Throwing a solution at a problem without understanding it goes against everything that is taught in Six Sigma. Take the time to do the groundwork and you will get an improvement that sticks. If you need help talking through how to measure a business process or basic tool usage, send me a message. I’d be happy to help.

    Joy

    0
    #66848

    Ken Domonkos
    Participant

    In order to implement Six Sigma successfully you need to understand and measure your business processes. If you would like suggestions on what software to use for this please contact me.

    0
    #66897

    Praneet
    Participant

    Hi
    To answer your question …what you probably need to do is basically carry out the following steps
    (a) Measure where you are :- Measure the current process capability of your process.. this will give you the Mean & Standard Deviation of the process
    (b) Next do a Root cause analysis :- You may be surprised to find out that besides incorrect invoices from your SUppliers there may be other systemic issues with your oww process which could be causing the delay
    (c) Next fix the issues found during your Root Cause Analysis study and set up a measurement system in place to track the improvements
    Tools that you can use for this are Capabaility Analysis, Fishbone (a.k.a Ishikawa diagram), Pareto Analysis , FMEA and Control Charts

    0
Viewing 5 posts - 1 through 5 (of 5 total)

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