Every business has accounts receivable which govern when they will be paid for their products and services. We’ll look at how Lean and Six Sigma can improve accounts receivable through several applications. Then we’ll finish with videos on Accounts Receivable KPIs and How to Improve Accounts Receivable Collections.

 

Lean Six Sigma Applied to Fee Billing Processes

In a master’s thesis titled “Applying Lean Six Sigma Concepts to Improve Fee Billing Processes” author Elily G. Daffa discusses a project applying DMAIC to improve fee billing processes.

The thesis includes:

  • Time Spent per DMAIC Phase
  • Design View of Query for Data Collection
  • Transaction Data Collected
  • Percent Error for Identified Issues
  • Pareto Chart
  • Frequency of Root Causes
  • Fishbone Diagram: Increase in Amount of Work in Fee Billing
  • Suggested Fee Adjustment Form and Associated Finished Product

You can access the thesis here.

 

Using Six Sigma to Improve Accounts Receivable

In a video project presentation titled “Using Six Sigma to Improve Accounts Receivable at Shodair Children's Hospital” presenters Ary Ekola and others discuss the use of Six Sigma to reduce payment days in the outpatient clinic.

The presentation includes:

  • Process Definition
  • Strategic Goal/Business Case
  • Problem Statement
  • Process Map
  • Reduction of X-variables
  • FMEA
  • Control Phase Monitoring

You can watch the video presentation here.

 

 

Lean Six Sigma and Data Analytics to Improve Accounts Receivable:

In a short LinkedIn post titled “Lean Six Sigma approach to create compelling Finance Dashboards” author Venkat Kumar shares his experience in facilitating a project to leverage Data Analytics into Accounts Receivable for improving Receivables Efficacy.

You can access Venkat’s post here.

 

Six Sigma Applied to Reduce Days to Collect

In a paper titled “Reducing days to collect through the execution of Six Sigma within business process management” authors Cosmin Dobrin and Paul Soare discuss their project to improve median days to collect.

The paper includes:

  • SIPOC
  • Fishbone for Days to Collect
  • Process Performance Before
  • Potential X’s for Days to Collect
  • Screening on Potential X’s
  • Summary of Considered X’s
  • Root Cause Analysis and Solutions
  • Product Performance After

You can read the paper here.

 

Progress Energy’s Continuous Business Excellence Initiative to Reduce Accounts Receivable

In a paper titled” Organization Development Quality Improvement Process: Progress Energy's Continuous Business Excellence Initiative “ authors V. E. McCuiston and A. DeLucenay discuss an initiative to reduce a growing accounts receivable.

The paper includes:

  • Management Tool Usage and Satisfaction Rates
  • Quality Term Definitions
  • Progress Energy Organization Chart
  • Stages of Organizational Development and Continuous Improvement Model
  • CIAC Process Flow
    • CIAC is a customer initiated request beyond the standard of service required by the Florida Public Service Commission

NOTE: Click on the following link for an automatic download of the paper.

 

Videos

Accounts Receivable Collection KPIs

Learn about accounts receivable collection KPIs in this video from Tally Street

You can watch the video here.

 

Improving Accounts Receivable Collections

Get tips on how to improve accounts receivable collections in this video from Valley Business Centre.

You can watch the video here.

 

 

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