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Advancing and streamlining AP processes with lean six sigma methodology
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Advancing and streamlining AP processes with lean six sigma methodology

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Martin Yii, Controller for Sealed Air Corporation’s Australia/New Zealand Financial Service Centre, has been able to increase productivity in his accounts payable by incorporating Lean Six Sigma. ...

Martin Yii, Controller for Sealed Air Corporation’s Australia/New Zealand Financial Service Centre, has been able to increase productivity in his accounts payable by incorporating Lean Six Sigma. Download his presentation and find out if lean six sigma can reduce wasted processes and amplify efficiency via:
- Case study: Implementing lean six sigma to shorten invpice processing time and boost productivity
- Results to streamline AP with lean six sigma projects
- Importance of continuing lean six sigma implementation

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    Advancing and streamlining AP processes with lean six sigma methodology Advancing and streamlining AP processes with lean six sigma methodology Presentation Transcript

    • Sealed Air Corporation Accounts payable and Purchasing Summit March 14, 2012Martin YiiControllerAustralia/New Zealand Financial Service Center
    • Sealed Air Corporation (NYSE: SEE)Overview A new Global leader and innovator in food safety and security, facility hygiene and product protection Technology leadership with an emphasis on proprietary solutions that deliver measurable value 138 manufacturing facilities Operations in 69 countries 26,500 employees 2
    • Sealed Air Corporation (NYSE: SEE)Overview 3
    • Sealed Air Corporation (NYSE: SEE)Overview 4
    • AgendaAdvancing and streamlining AP processes withlean six sigma methodologyCan it really reduce waste and amplify efficiency ? 5
    • Background of ANZFSC Initiatives Early 1998 implementation of ERP system in ANZ first opportunity to standardise processes senior management support – a project team to define criteria, identify processes that are more suited to be standardised and centralised created two finance streams, Accounting Services and Analyst/Costing 6
    • Transformation objectives Accounts Payables: improve process efficiency, decrease transaction costs and improve terms Accounts Receivables: improve collection process, decrease transaction costs and improve DSO Credit Control: consistent policy and reduce bad debts General Ledger: improve timeliness of reports, accuracy and integrity of data Improve internal controls 7
    • Project Drivers Stakeholders expectations – external and internal Competitive benchmarks Budgetary constraints Clean fit with Corporate Strategic Initiatives 8
    • Roadmap Develop a vision for future state Establish current performance baseline Develop a realistic plan Create a business case to gain buy-in Staff the project team with high performance resources Communicate 9
    • RoadmapWhy require both Lean and Six Sigma? Inconsistent delivery and quality increases costs/lead time Slow lead times reduce rate of quality improvement Capacity problem is masked by slow lead times In a process flow, a lot of time is spent on waiting 10
    • Roadmap Lean Six Sigma Lean – focuses on reduced lead time, provides key measure and analysis tools to visualize problems and to pin-point where to improve Six Sigma – focuses on improved quality, provides the over-riding methodology (DMAIC) Together, they form a powerful tool 11
    • RoadmapLean focuses on eliminating wastes: TIMWOOD Waste in Transportation Waste in Inventory Waste in Movement Waste in Waiting Waste in Overproduction Waste in Over processing Waste in Defective products Wastes are inherent in EVERY process 12
    • RoadmapLean focuses on eliminating wastes: Examples. Invoices sent to SC instead of the buyers Time wasted in trying to find out who has a spreadsheet open Location of printers Missing information on request forms Too many checks or approvals Use two computer screens 13
    • Roadmap Six Sigma - DMAIC methodology Define Measure Analyse Improve Control 14
    • Roadmap Define Select Project Select team Project Charter Validate Charter/scope Voice of customer/business Translate into requirements Communicate 15
    • Roadmap 16
    • Roadmap Validate SIPOC Example Voice of Customer Survey questions 17
    • RoadmapMeasure Look at data relevant to the process you want to measure Value Stream map for deeper understanding Data Collection plan 18
    • RoadmapExample: VSM 19
    • RoadmapData Collection Plan Example 20
    • Roadmap Analyse Determine the cause and effect Value Added VSM Pareto’s FMEA Fishbone Diagrams Brainstorming 21
    • Roadmap Example: 22
    • RoadmapImprove Develop potential better solutions Evaluate, select best solution Develop ‘future state’ value stream maps Confirm attainment of project goals Develop implementation plan 23
    • RoadmapControl Ensure no deviation from goals Implement solution Mistake proofing Ongoing process measurements Communicating the gains 24
    • Quick Wins vs Kaizen Quick Wins – already in the improvement phase Still need to go through Define and Measure to clarify scope and measure the improvement Benefits – provide momentum, confidence, achieve goals early and credibility 25
    • Quick Wins vs Kaizen Kaizen – accelerated DMAIC Less complex project/problem Uses team knowledge/cross functional team 26
    • What we have achieved so far… One Financial Service Centre in Australia Responsible for GL, AP, AR, taxation compliance, statutory reporting, credit control, fixed assets Increased productivity in AP, AR and GL Reduced monthend reporting cycle time by two days (6WD to 4WD) Implemented customer satisfaction survey, employee satisfaction survey Produce quarterly scorecards 27
    • What we have achieved so far… Case Study: Consignment stock Standard process, review Auto posting to vendor account Employee payments Consolidated payment, upload Auto clearing of parked documents Eliminate manual clearing 28
    • Lessons Learnt Senior management support critical Use LSS tools Clear outcome - savings Hold team accountable for savings Celebrate success 29
    • Challenges Commit resource Prioritization of projects Select team member Time zones 30
    • SummaryTry to get LSS into the DNA of the organisation Everyone needs to have a Lean mindset, curious as to what is the problem, how to get to the root causeWorking closely with global partners andstakeholdersBench marking processes with world-classperformanceEvaluating new technology 31
    • Thank you 32