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Case Study - Reducing Queried Invoices by over 50% via Lean

Problem

10% of a large B2B businesses' invoices were being queried by key customers before payment, driving up process cost and negatively impacting cashflow.

1. We graphed the results

On a Process Behaviour Chart, to understand if the problem was systemic. The way the problem manifests (systemically or not) determines the most efficient and effective improvement approach to adopt.

2. We identified apparent causes

Using a fishbone diagram, to highlight the key presenting causes.

3. We identified, and then solutionised, the root causes

Using 5 Why's Analysis, to find the real root causes. By correlating them to the problem to ensure proven causality, when we solutionised we were confident of success.

4. We implemented and measured

We adopted the solution and continued adding data to the Process Behaviour Chart established in Step 1., to ensure changes were effective, and sustained.

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5. Result

Queried invoice volumes dropped from 10% to below 5%, a 50%+ reduction!

100

Delivery to Plan

50

Queried Invoice Reduction

10000

ROI from aorist consultancy, training and coaching

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Businesses typically benefit from a 50 - 100+ times rate of return, when measuring the cost of an aorist Lean 6 Sigma or Systems Thinking / Systems Dynamics Simulation training course and coaching against the benefits derived from applying it the very first time in their business.