Applying Lean Six Sigma to Improve Telephone Bill Payment: A Case Study of A Real Estate Developer
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Abstract
This case study is about deploying Lean Six Sigma methodology to improve performance as well as assist in developing improvement practices in organizations. The objectives of this study are to focus on process efficiency and to ensure that the payment lead time is within the due date. The steps have been taken through systematic thinking, including DMAIC, and by utilizing Lean tools to streamline the process. The Six Sigma methodology uses data and facts to identify the root causes of the problem, while the Lean method eliminates wastes and non-value-added steps. Process Flow, Fishbone Diagram, and Failure Mode and Effects Analysis (FMEA) are utilized to confirm causes and provide potential improvement actions. In the end, the accounting staff reduced the workload in handling the telephone bill payments from five days to two days per month. The administrative staff and the management have spent less time dealing with all the telephone invoices. This was done by eliminating some non-value-added steps. Moreover, the payment lead time can be processed on time with accuracy.
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