Case Study: Mandelbaum Inc - Accounts Payable (AP) Process
Lean-Six Sigma Case Study
Dmaic Assignment:
Using the available data, prepare a full DMAIC report (If using PPT summary, prepare 15-30 slides excluding appendices. Please include interpretation of any Minitab output directly on slide in text box or as bullet point - do not assume graders will interpret your output). Also within your report, you should include the following at a minimum:
- Provide a well-defined problem statement (Define) including cost information
- Validate that the measurement system meets its acceptance criteria
o Note: A detailed measurement system analysis is not needed if meet criteria.
- Summarize Current State Performance for the following key process outputs:
o Daily Throughput (e.g., performance relative to desired customer demand requirement of 750 invoices per day). If data are not normal, you may use the 'observed' out-of-specification. Note: Use data from Study 4A for Measure Phase Current State Performance Summary. Consider including both process capability and stability analysis of daily throughput.
- Analyze data to identify opportunities for improvement
o Summarize potential issues and/or variables to study using a Cause-Effect Diagram, P-Diagram, or similar.
o Use available data to identify specific areas of improvement (e.g., stratify data and use appropriate statistical analysis and/or graphical tools)
- There are numerous factors which may be used to stratify data for the outputs: daily output, weekly exceptions, and relative days (or, % on-time)
- Possible Factors to Study: Day of Week Code, Peak vs. Non-Peak, Region, Invoice Type (Electronic, Paper-BU, Paper-Mail), Exception by Dollar Amount Category (see Excel File for current categories), etc.
o Note: You are welcome to sort, subset, and/or reorganize the available Excel data to create meaningful graphics/analyses to support findings.
- Provide list of improvement recommendations
o Your recommendations should be justifiable based on the available data. (Note: You may include any of the improvements already stated in the case study (e.g., from the Kaizen Event) within your DMAIC Report Improve Phase.)
- Identify ways to better control this process more effectively in the future (Note: General control phase recommendations summarized in 1 or 2 paragraphs is sufficient).
o Note: You should be able to provide at least one example of a visual control (e.g., for daily visual management) that could be applied to this process (e.g., may provide a sample pictorial or sketch to illustrate your recommendation for the control phase section of your report.)
- Post DMAIC Verification Analysis: Estimate (quantify) the potential improvement (in performance outputs and/or $) based on your above analysis with recommendations. (Note: Actual improvement amounts will depend on your analysis/recommendations - thus there is no single correct answer. Still, you should be able to estimate cost savings based on available information or improvements in performance of current outputs.)
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Attachment:- Accounts Payable Process.rar