Pres. final

rel. 1 2013/mm/ddSolving Efeso © 2013
Project: Transactional Sales Cycle and
Documentation
Project Leader Name: Toka Ahmed
Sponsor Name: Khaled Madbouly
Division: Finance

- 2 -File name Solving Efeso © 2013
Summary
Project description
The process we set up
 The team
 The methodology (route)
 The planning of the steps
 The Performance Indicator
What have we done
 The Steps implementation
Results achieved
How to hold the gains
Potential reapplication
What have we learnt?

Project description
•Problem statement
 Schneider is experiencing long lead times and low
service level in the preparation of documentation to be
delivered with the products. Also Process lead times are
too long to compete.
Objective:
Identification & implementation of priority set of
Improvement actions to achieve:
1. To reduce the process lead time
2. To ensure the invoice is delivered on time.
3. Reduce No. of Customer complaint by 70% (from 8 to 2
complaints monthly)

The methodology (route)
The Route for business process lead time reduction

The Methodology
1. As is process, highlight anomalies 2. Customer interview 3. Search for root cause for each anomaly
4. Corrective action plan & Control 5. Future state Process including KPI’s

Expectations at beg. of the project YTD actual figures
Lean Office: Performance Indicators
50% not sent
on Time
50% sent on
Time
30% invoices without
acknowledgement
70% acknowledged
invoices
52% not sent on
Time
48% acknowledged
invoices
7-13 days
<=6 day
<=5 day
<=4 day
<=3 day
<=2 day
<=1 day
On Time
4%
5%
4%
6%
25%
22%
13%
21%

1.2 Identify customers and their requirements
Company Name Activity Problem
Meetco/ Mostafa
Hegazy
Order
Registration Check Process 1.Order AcknologmentCould be After 3 days
Starco/ Hala 2.material on system is not updated (name, availability)
MAS/ Michael Salama
3.References is not updated when customer register the
order
Memico/ Yasser El-
Shemy
4.Order Acknowledgment for Finished Goods take more than
2 days
Smart Solutions Receiving Goods Missing Items 1.Goods could be delivered to the wrong address
Over items 2.Large Number of DN and Invoices
3.Customer complain about packaging the items
4.Customer could receive missing items and wrong material
Invoice Delay in receiving 1.Customer receive invoices very late
Customer sheet Signature 2.Customer Refuse to sign Invoice even when Aramex push
customer receive wrong
invoices 3.wrong calculation in discount
4.invoices with additional tax while customer is exempted
5.Wrong Name / Address on the invoice
6.Customer Complains About number of invoices and DN
Suggestions
1.Customer agreed on minimizing number of invoices issued
on the same day
2.Customer agreed on receiving invoices with the DN
and be reviewed and delivered to schneider back after 48 h

1.3.2.1 process mapping
Process
activity Owner
Input
inform.
From
whom Checks
Output
inform.
To
whom
Customer select material & order type SALES offer form Customer Offer Revision Confirmed Offer CCC
Revise Pyt Terms/checks by CCC CCC Checks Customer checks Completed
CCC Register the order CCC Confirmation/checks Customer Order Number DC/FIN/CUS
Prepare order materials / issue DN By DC DC order CCC Materials AV. FG Warehouse/CCC
If new system (revise all checks) CCC Checks Customer checks Completed
If old system (revise Down payment check) CCC Checks Customer checks Completed
CCC. Email Finance to release the Order CCC Order Num/check Copy CCC Email Finance
If Not approved Checks return back to CCC FINANCE Checks/order CCC Review checks release confirmation CCC
CCC Inform Customer/Sales/DC to stop Preparation FINANCE Finance E-mail Finance Hold Order CCC
Cancel Order SALES Release Disapproval Finance order cancellation CCC/DC/SALES
If approved Dc will continue order preparation FINANCE Release Approval Finance FG Warehouse/CCC
Release goods on system by DC on delivery day DC Confirmed FG File WH DN Finance
Email finance for Delivery approval DC DN DC Approval Request Finance
check customer Financial situation by finance FINANCE Approval Request DC Customer Situation
If No: DC hold Delivery / reverse goods on system DC Delivery Disapproval Finance Reverse Goods on sys WH/CCC/SALES
If Yes: DC Print Delivery note DC Delivery Approval Finance DN
Sign & Send it to warehouse DC Delivery Approval DC DN/copy of Delivery Approval WH
photo copy DN by WH DC DN WH
Customer Receive Goods & DN DC Good/DN WH Signed DN DC
Create Invoice By finance FINANCE Delivery Number DC Invoice
Print, stamp, sign & photo copy invoices FINANCE Invoice Finance Signed Invoice
Classify Invoices by Customer name FINANCE Invoice Finance classified Invoices
Filling invoices for courier with cover sheet FINANCE Classified Invoice Finance Invoice Pack courier
Aramex deliver invoices within 24h COURIER invoice pack courier
obtain cus, signature & deliver it back to finance COURIER Customer Signature Finance
DC send Signed DN by customer to finance DC Signed DN DC
attach signed inv. With signed DN FINANCE Signed DN/Invoice Finance Filing Finance
Archiving FINANCE

Gantt Chart
Total cycle time is 24.5 days
Process activity
Lead Time (hours)
0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5 6 6.5 7 7.5 8 8.5 9 9.5 10 10.5 11 11.5 12 12.5 13 13.5 14 14.5 15 15.5 16 16.5 17 17.5 18 18.5 19
Customer select material & order type
Revise Pyt Terms/checks by CCC
CCC Register the order
Prepare order materials / issue DN By DC
If new system (revise all checks)
If old system (revise Down payment check)
CCC. Email Finance to release the Order
If Not approved Checks return back to CCC
CCC Inform Customer/Sales/DC to stop
Preparation
Cancel Order
If approved Dc will continue order preparation
Release goods on system by DC on delivery
day
Email finance for Delivery approval
check customer Financial situation by finance
If No: DC hold Delivery / reverse goods on
system
If Yes: DC Print Delivery note
Sign & Send it to warehouse
photo copy DN by WH
Customer Receive Goods & DN
Create Invoice By finance
Print, stamp, sign & photo copy invoices
Classify Invoices by Customer name
Filling invoices for courier with cover sheet
Aramex deliver invoices within 24h
obtain cus, signature & deliver it back to
finance
DC send Signed DN by customer to finance
attach signed inv. With signed DN
Archiving

Anomalies
We almost have 32 tags for the whole process
High Low High Low A B1 B2 C
1
Mohamed
Tahlaw y
A - Several types of orders
(normal,old,new )
- - X
Revise Pyt Terms/checks
by CCC
12/05/2013 X X 1
2 Ghada Gow ily B - Flash orders has no process - X - CCC Regester the order 12/05/2013 X X 1
3 Enas Azmi
C - w rong revision of checks before
Regestration
X - -
by CCC
12/05/2013 X X 1
4 Toka Ahmed D - Blocked Customer is unknow n to ccc X - -
If Not approved Checks
return back to CCC
12/05/2013 X X 1
5 Toka Ahmed
E - Blocked Customer Not Cleared to D.C
on SAP
X - -
If No:D.c hold Delivery /
reverce goods on system
12/05/2013 X X 1
6 Enas Azmi
F - Regestrtion for blocked customers
w ith normal lead time
- X -
Prepare order materials /
issue D, N. By DC
12/05/2013 X X 1
7 Enas Azmi
G - customer Select a part from his F.G
(partial picking)
X - -
Prepare order materials /
issue D, N. By DC
12/05/2013 X X 1
8
Ahmed
Madkour
H - Finished goods payment calculations
are not clear to customer
- X -
by CCC
12/05/2013 X X 1
9 Enas Azmi
I - D.C continue order preparation w hen
finance doesn' approve on release
- - X
CCC Informe
Customer/Sales/DC to stop
Preparation
12/05/2013 X X 1
10 Toka Ahmed
J - Delay in recieving checks to finance
after regesteration
X - - CCC Regester the order 12/05/2013 X X 1
11 Ghada Gow ily
K - Long time in Releasing Finished goods
orders
X - -
CCC. Email Finance to
release the Order
12/05/2013 X X 1
IMP ORG Activity areaTag N°
Recorded
by
Anomaly DEV
Effort Effect PriorityIssued
Date

Prioritizing Problem to be tackle
Matrix of priorities Finance - Credit
Tags Register Documentation

High effect
A
16
B2
12

Low effect
B1
0
C
1

Easy to solve Difficult to solve

Understand the Root cause of the problems

The results
Action Plan

Gantt Chart For New Process
N Process activity Owner
Lead Time (hours)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38
1 Customer select materials
2 Receive customer cheques
3 review orders cheques
4 register the order
5 DC prepaire orders
6 send cheques to FIN
7 if No Cancel order after48 H
8 CCC send fg Sheet to cus
9 Issue delivery note
10 Send deliveries to FIN as inf
11 FIN Bill invoices
12 WH print DN send it to Amin
13 Admin print, stamp, attach inv DN
14 Send in & DN with materials
15 Customer sign DN & INV imm
attach sign DN & inv send it to FIN
* Each Unit Represent Maximum one working
day
*Process Lead Time 5 working Days without
Taking in consideration DC Cycle
Total Cycle time for new process 5 working Days

Expected Results
Reduce # of inv. By 96%
from 2996 to 236 inv Q
Establish new KPI’S
Decrease
Error in
invoices
from 66 to
0
Minimize mistakes in
delivering missing
invoice to to the wrong
customer
Decrease
Customer
Complaint
s from 8 to
2 monthly
Process time by 80%
Ease the process

Expected Savings
Annual Saving resulting from DHL
Average No. of DHL shipment per day: 6
No. of working days in a month: 22
No. of Months in a year: 12
Cost of one DHL shipment: 26 EGP
______________________________________________________________
Total saving = 6 x 22 x 12 x 26= 41,184 EGP
Annual saving resulting from reducing No. of invoices and the new setup agreed with Sherif Azzam
Total No. of involved credit employee = 1 persons (Toka or Maher)
No. of daily working hrs: 2 hrs
No. of working days in a month: 22
No. of Months in a year: 12
___________________________________________________________________
Annual hrs. saving = 2 * 22 * 12 = 528 hrs

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