Improving with Lean Six Sigma

• 40% cycle time improvement
• 100% adaptation rate
• $5M revenue protection
• Reduced Labor Costs

A Lean Six Sigma Journey: Reshaping with Automation

Hey there! Let’s dive into a real-world example of how we helped tackle some serious process challenges within a Sales-to-cash process using Lean Six Sigma principles. A Lean Six Sigma Journey: Reshaping with Automation: this case study explores how a telecommunications company in the EMEA region tackled process inefficiencies within their Sales Cash cycle using Lean Six Sigma methodology.

Business Challenge

The telecommunications company faced significant challenges in its Sales-to-cash process, resulting in inefficiencies and customer dissatisfaction. With approximately 40% non-value-added and wasteful steps, manual work, and poor data collection, the process lacked standardization and efficiency. Moreover, a high rejection rate of 60% led to rework, delayed customer orders, and ultimately, dissatisfied customers canceling contracts. The Sales cycle time was prolonged, and the company offered a staggering 20 different ways to order products, contributing to confusion and delays.

Solution

To address these challenges, the company adopted the Lean Six Sigma methodology, a proven approach to process optimization. The journey began with virtual and in-person Gemba walks, where teams observed and analyzed the Sales-to-cash process in its current state. By creating “as is” process maps, the company gained a comprehensive understanding of existing workflows and identified areas for improvement.

Following the analysis, the company organized in-person and virtual “Kaizen” workshops, bringing together cross-functional teams to brainstorm solutions and implement process improvements. Through collaborative efforts, they identified opportunities for automation using Robotic Process Automation (RPA) and Application Programming Interfaces (APIs) to streamline manual tasks and enhance data accuracy.

Key improvements included revamping the ordering website with a user-friendly design, consolidating the ordering process from 20 to just five methods, and implementing RPAs and APIs to automate repetitive tasks. The company laid the foundation for a more streamlined Sales to Cash cycle by deploying these solutions and shutting down inefficient processes.

Results and Impact

The implementation of Lean Six Sigma principles yielded significant results and positive impacts on the company’s operations:

• Achieved a 100% adaptation rate among employees for the new processes.
• Realized a remarkable 40% improvement in cycle time, reducing delays in order processing.
• Reduced labor costs by optimizing manual tasks and reallocating resources to value-added activities.
• Consolidated the ordering process from 20 methods to 5, simplifying the customer experience and reducing confusion.
• Protected revenue with estimated savings of $5 million through increased efficiency and reduced rework.
• Successfully redeployed Order staff into other business areas, maximizing resource utilization.
• Decreased the need to hire additional resources, resulting in cost savings for the company.

Conclusion: Optimixation

In conclusion, the telecommunications company’s journey to optimize the Sales to Cash process with Lean Six Sigma demonstrates the transformative power of process improvement methodologies. By identifying and addressing inefficiencies, standardizing workflows, and leveraging automation technologies, the company improved operational efficiency, enhanced customer satisfaction, and protected revenue.

Key Takeaways:

• Prioritize process optimization to maximize efficiency and enhance customer satisfaction.
• Adopt Lean Six Sigma methodology for structured and data-driven process improvement.
• Encourage cross-functional collaboration and continuous improvement initiatives.
• Embrace automation technologies like RPAs and APIs to streamline manual tasks and improve data accuracy.

We can help!

Are you facing similar challenges in your organization’s operational processes? Contact our team to learn how Lean Six Sigma and process optimization can drive tangible results for your business.

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