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Case Study - Reducing Time to Payment by 1 week, a benefit of over £2m via Lean 6 Sigma

Problem

A large FTSE 100 business was experiencing significant delays in bill payments.

1. We mapped the process and gathered data

To increase understanding of what was really happening during the billing, querying and payment processes.

2. We formed hypotheses as to the potential causes of payment delays.

To give clear focus on potential causes of delay, query and failure.

3. We tested the various hypotheses using statistical methods.

To give clear focus on the actual causes of delay, query and failure, and prevent us fixing things that weren't broken.

4. We implemented and measured changes designed to address the real causes of delay, query and failure

To ensure changes were effective, sustained, and did not have unintended negative consequences.

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5. Result

Average payment time was reduced by 1 week, a benefit of over £2m p.a.!

100

Delivery to Plan

15

Faster Bill Payment

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.