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Case Study - Reducing Contract Errors by over 99% via Lean 6 Sigma

Problem

On average, 29% of contracts contained significant errors in a large business.

1. We measured failures

Recording defect levels per contract 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 hypothesised causes

Using data and a number of fishbone diagrams, to highlight the key apparent presenting causes.

3. We tested the hypothesised causes to identify the underlying root causes, and then solutionised, the root causes

By testing statistically whether the hypothesised causes related to the problem, when we solutionised we were confident of success as we knew we were adressing the genuine causes of the problem.

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

The percentage of broken promises was reduced by 99.9%!

100

Delivery to Plan

99.9

Contract Errors 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.