1. Billing Adjustment Process Improvement – A3 Storyboard
Define: Improve:
Avaya has identified
opportunities for
improving their
transactional process
for contract
adjustments.
Implement
automated reporting
to customers with
expiring POs to
prevent time delays
and adjustments.
Objectives include
mapping the current-
state adjustment
process to capture a
better understanding
of the causes behind
adjustments and
proposing a future-
state adjustment
process with
standard operating
procedures.
Create and
implement domestic
SOA for S1
adjustments and
incorporate
adjustment reason
codes.
Conduct on-going
internal review to
facilitate continued
process
improvement.
Measure: Control:
Data was collected
regarding the
number, value,
reason, and duration
of S1 billing
adjustments.
Future State control
map for on-going
internal review.
Strict adherence to
newly implemented
SOA.
Graphs were created
to compare net
adjustment value to
adjustment number
over time.
Analyze: Benefits:
Analysis of
adjustment
frequencies, impacts,
and root causes.
Targeted reduction of billing adjustment
reserve by $1.6 million (22% decrease) and a
21.1% decrease in the total number of S1
adjustments performed.
Pareto charts were
generated to identify
the most frequently
occurring adjustment
reasons and quantify
revenue impacts.
48% decrease in the total dollar value of billing
adjustments—producing an estimated total
annual cost savings of $202,856.
Ability to continually monitor and improve
billing adjustment process with increased
visibility and reporting capabilities.
An FMEA was
constructed to
identify top-priority
failures and fishbone
diagrams were
utilized to determine
their root causes. The
top 4 failure modes
accounted for over
85% of adjustment
errors.