sipoc diagram ---- insert process title here farid's lean six sigma black belt... · company a...
TRANSCRIPT
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SHAN FARID
NOTE – For Confidentiality, the Company’s Name has been Removed from slides
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Define
Measure
Analyze
Improve
Control
Results
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Company A Acquired Major Competitor,
Company B (2011)
Company B - $7 Billion Annually
(Utilized SAP System)
Company A - $3 Billion Annually
(Utilized Oracle & FAS Systems)
*FAS (Fixed Asset System)
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SPECIFIC
VALUE
• Quality of FAS Database
UNIT OF MEASUREMENT
• Time
MEASUREMENT
• Actual Measurement
CURRENT
VALUE
• Over 6 Weeks
DESIRED
VALUE
• 2 Weeks
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FAS
Big 4 AuditorsFinance
DepartmentAccounting Department
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GOAL
New FAS Reporting Process of 2 Weeks
MEASUREMENT
Time (Number of Weeks)
PROBLEM
Current FAS Reporting Process is 6 Weeks & Must Be Reduced
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Receive
Activities from
Oracle
Accountants
FAS
Accountants
Completes
Activities in
FAS
FAS
Accountant
Runs Reports
FAS
Accountant
Reconciles
(Database &
Reports)
Submit Reports
6 Days 12 Days 1 Day 11 Days
LEAD TIME:
6 Weeks
(30 Days)
SUPPLIERS INPUTS PROCESS OUTPUTS CUSTOMERS
- Managers - FAS System - Monthly
Transaction Reports
- Fixed Assets
Department
- Directors- - SAP System - Updated &
Reconciled
Database
- Tax Department
- Oracle Accountants - Oracle System
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Receive
Activities
From Oracle
Complete
FAS
Activities
Contact
IT
Department
FAS
Reconciliation
Submit
Reports
Run Reports
in FAS
DID
REPORT
CRASH?
Delay
IS FAS
RECON-
CILED
W/ORAC
LE?
Meet With
F/A Manager
& Oracle
Accountants
Delay
YES
YESNO
NO
6 Days 12 Days 1 Day 11 Days
LEAD TIME:
6 Weeks
(30 Days)
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1.) Receive Activities from Oracle
Accountant
2.) FAS Accountant Complete
Activities in FAS
3.) FAS Accountant Runs Reports
5.) Submit Reports
4.) FAS Accountant Reconciles
(Database & Reports)
A.) Customize
Acquisition
Templates
B.) Upload
Addition AssetsC.) Retire Assets D.) Transfer Assets
A.) Format ReportsB.) Reconcile with
Oracle Sources
C.) Reconcile with
Other Sources
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CUSTOM ACQUISITION TEMPLATE FORMAT REPORTS
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• Assessing the capability of the current process and system bottlenecks with the goal of determining strategies to reduce failure rates
Purpose
• Measured average reporting rates by several Company A employees:
• Johnny N. (Senior Tax Accountant)
• Mark L. (Senior Fixed Assets Accountant)
• Paul K. (Tax Accountant)
• Tynicia B. (Year-Up Intern)
• Shan F. (Consultant)
Data Collected
• Histograms, Box-plots, X-Bar charts, Scatter Plots, and Regression Analysis
Data Analysis Approach
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• Acquisition Templates (Uploading Acquired Assets)
• Created Tutorial (Training)STANDARDIZATION
• Automate Transfer/Retirement Activities in FASBENCHMARK
• New Server
• Cross-Training (FAS & Oracle)
• Manager Involvement
• Consolidate Reports
OTHER
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TRAINING TUTORIAL
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1.) Input
Activities
2.) Filter For
Retired Assets
3.) Retire
Assets in
1-Clcik
4.) Filter For
Transferred
Assets
5.) Transfer
Assets in
1-Clcik
1.) Receive
Oracle
Activities
2.) Upload
Standardized
Templates
3.) Filter For
Retired Assets
4.) Retire
Assets in
1-Clcik
6.) Transfer
Assets in
1-Clcik
5.) Filter For
Transferred
Assets
ORACLE/SAP ASSET ACTIVITIES
FAS ASSET ACTIVITIES
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• Hurdle: Cost of Server
• Success Measure: Reduction in System Crashes
New Server
• Hurdle: Time Commitment and Scheduling
• Success Measure: FAS Reconciliation Cycle Time Reduction
Cross Training
• Hurdle: Buy-In and Commitment to Process Improvement
• Success Measure: FAS Reconciliation Cycle Time Reduction
Earlier Manager Involvement
• Hurdle: Correctly Identifying Relevant Metrics
• Success Measure: FAS Activity Completion Reduction
Consolidated Reports
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Receive
Activities
From Oracle
Complete
FAS
Activities
Contact
IT
Department
FAS
Reconciliation
Submit
Reports
Run Reports
in FAS
DID
REPORT
CRASH?
Delay
IS FAS
RECON-
CILED
W/ORAC
LE?
Meet With
F/A Manager
& Oracle
Accountants
Delay
YES
YESNO
NO
CT = 6 Days CT = 12 Days CT = 1 Day CT = 11 DaysLEAD TIME:
30 Days
Process Bottleneck
Throughput Time: 30 Days
Cycle Time: 12 days
Throughput Rate: .167 Reports/Week
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Run Oracle
Reports
Meet With
F/A Manager
(Recon-
ciliation)
Complete
FAS
Activities
Run Reports
in FAS
Submit
Reports
CT = .5 Day CT = .5 Day CT = 3.5 Days CT = .5 Day
LEAD TIME:
5 Days
Throughput Time: 5 days
Cycle Time: 3.5 days
Throughput Rate: 1 Report/Week
Process Bottleneck
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PROCESS MEASURE ORIGINAL PROCESS NEW PROCESS % CHANGE
CYCLE TIME 12 days 3.5 days 71%
THROUGHPUT TIME 30 days 5 days 83%
THROUGHPUT RATE .167 Report/Week 1 Report/Week 599%
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0
1
2
3
4
5
6
PREVIOUS NEW
WEEKS 6 1
WE
EK
S
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$20,000,000
$6,000,000
$4,000,000
Transaction Errors
FAS Malfunction
Tax Credits