Client Testimonial - Lean Six Sigma in Accounting
Supply Velocity created visibility within our Assurance
Services Group... visibility of performance, Client-service, employee satisfaction
and processing time. Using the Supply
Velocity System, Audit Report Cycle time is down over 50%. We are using these strategies to create greater
Client loyalty.
Fred Kostecki
Partner-In-Charge, Assurance Services
RubinBrown
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 What is Ray Doing?
Ray is helping a Client improve productivity through 5S Visual Management. Look at this 5S Red Tag Area!
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Lean Shipping Process
This company
manufactured products for the construction industry and distributed highly
engineered components produced by other companies. Manufacturing and Distribution were separate
businesses, which came together at Shipping.
This
project was driven by the company's CFO, who felt that shipping processes,
which had never been looked at, were wasteful.
As you will see below, he was correct
LEAN SIX SIGMA TOOLS
Performance Scorecards Process Flow Mapping
DETAILS
1) We kicked off our
project by developing the Shipping Department's Scorecard.
http://www.supplyvelocity.com/files/April_2010_Shipping_PFM_Actions_and_Savings.xls
2) Then we used
Process Flow Mapping to identify Non Value Added steps. (I chose not to show you another Process Flow
Map picture and focus on the items we identified that should be eliminated from
the process.)
3) The Action Plan
Tab the Non-Value-Added steps and our ideas for eliminating them.
4) I want to point
out one specific Non-Value-Added step that we identified. It is relatively small, but it shows the
power of mapping. The last entry on the
"Quantify Savings" tab is a Shipping Admin taking data from one report and creating
a new spreadsheet for the CFO to use for analysis. We asked the CFO if he needed this data and
he didn't know about it. The spreadsheet
was used by the prior CFO, who left 2 years ago! For 2 years this Admin was doing 20 minutes a
day of work and it was going into a "black-hole". The day we discovered this, we stopped doing
it.
5) Every
Non-Value-Added step that we could eliminate was quantified, so we could
realize actual labor savings from this project.
6) The "Savings
Summary" shows how the total labor savings.
RESULTS
This project yielded great results. We saved over 4500 hours per year in labor! These reductions were made through
attrition. Since this company was
impacted by the Great Recession of 2007 - 2009, it helped being able to reduce
labor by actually eliminating work and not just laying off people
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