Pres. final

rel. 1 2013/mm/ddSolving Efeso © 2013

Project: Transactional Sales Cycle and Documentation

Project Leader Name: Toka Ahmed

Sponsor Name: Khaled Madbouly

Division: Finance

- 2 -File name Solving Efeso © 2013

Summary

Project description

The process we set up The team

The methodology (route)

The planning of the steps

The Performance Indicator

What have we done The Steps implementation

Results achieved

How to hold the gains

Potential reapplication

What have we learnt?


Project description

•Problem statement Schneider is experiencing long lead times and low

service level in the preparation of documentation to be delivered with the products. Also Process lead times are too long to compete.

Objective:Identification & implementation of priority set of

Improvement actions to achieve:

1. To reduce the process lead time 2. To ensure the invoice is delivered on time.3. Reduce No. of Customer complaint by 70% (from 8 to 2

complaints monthly)


The methodology (route)The Route for business process lead time reduction


The Methodology

1. As is process, highlight anomalies 2. Customer interview 3. Search for root cause for each anomaly

4. Corrective action plan & Control 5. Future state Process including KPI’s


Expectations at beg. of the project YTD actual figures

Lean Office: Performance Indicators

50% not sent on Time

50% sent on Time

30% invoices without acknowledgement

70% acknowledged invoices

52% not sent on Time

48% acknowledged invoices

7-13 days

<=6 day

<=5 day

<=4 day

<=3 day

<=2 day

<=1 day

On Time

4%

5%

4%

6%

25%

22%

13%

21%


1.2 Identify customers and their requirements

Company Name Activity ProblemMeetco/ Mostafa Hegazy

Order Registration Check Process 1.Order AcknologmentCould be After 3 days

Starco/ Hala 2.material on system is not updated (name, availability)

MAS/ Michael Salama 3.References is not updated when customer register the order

Memico/ Yasser El-Shemy

4.Order Acknowledgment for Finished Goods take more than 2 days

Smart Solutions Receiving Goods Missing Items 1.Goods could be delivered to the wrong addressOver items 2.Large Number of DN and Invoices

3.Customer complain about packaging the items 4.Customer could receive missing items and wrong material

Invoice Delay in receiving 1.Customer receive invoices very lateCustomer sheet Signature 2.Customer Refuse to sign Invoice even when Aramex push customer receive wrong invoices 3.wrong calculation in discount

4.invoices with additional tax while customer is exempted 5.Wrong Name / Address on the invoice 6.Customer Complains About number of invoices and DN

Suggestions 1.Customer agreed on minimizing number of invoices issued on the same day2.Customer agreed on receiving invoices with the DN and be reviewed and delivered to schneider back after 48 h


1.3.2.1 process mapping

Processactivity Owner

Inputinform.

Fromwhom Checks

Outputinform.

Towhom

Customer select material & order type SALES offer form Customer Offer Revision Confirmed Offer CCC

Revise Pyt Terms/checks by CCC CCC Checks Customer checks Completed

CCC Register the order CCC Confirmation/checks Customer Order Number DC/FIN/CUS

Prepare order materials / issue DN By DC DC order CCC Materials AV. FG Warehouse/CCC

If new system (revise all checks) CCC Checks Customer checks Completed

If old system (revise Down payment check) CCC Checks Customer checks Completed

CCC. Email Finance to release the Order CCC Order Num/check Copy CCC Email Finance

If Not approved Checks return back to CCC FINANCE Checks/order CCC Review checks release confirmation CCC

CCC Inform Customer/Sales/DC to stop Preparation FINANCE Finance E-mail Finance Hold Order CCC

Cancel Order SALES Release Disapproval Finance order cancellation CCC/DC/SALES

If approved Dc will continue order preparation FINANCE Release Approval Finance FG Warehouse/CCC

Release goods on system by DC on delivery day DC Confirmed FG File WH DN Finance

Email finance for Delivery approval DC DN DC Approval Request Finance

check customer Financial situation by finance FINANCE Approval Request DC Customer Situation

If No: DC hold Delivery / reverse goods on system DC Delivery Disapproval Finance Reverse Goods on sys WH/CCC/SALES

If Yes: DC Print Delivery note DC Delivery Approval Finance DN

Sign & Send it to warehouse DC Delivery Approval DC DN/copy of Delivery Approval WH

photo copy DN by WH DC DN WH

Customer Receive Goods & DN DC Good/DN WH Signed DN DC

Create Invoice By finance FINANCE Delivery Number DC Invoice

Print, stamp, sign & photo copy invoices FINANCE Invoice Finance Signed Invoice

Classify Invoices by Customer name FINANCE Invoice Finance classified Invoices

Filling invoices for courier with cover sheet FINANCE Classified Invoice Finance Invoice Pack courier

Aramex deliver invoices within 24h COURIER invoice pack courier

obtain cus, signature & deliver it back to finance COURIER Customer Signature Finance

DC send Signed DN by customer to finance DC Signed DN DC

attach signed inv. With signed DN FINANCE Signed DN/Invoice Finance Filing Finance

Archiving FINANCE


Gantt Chart

Total cycle time is 24.5 daysProcess activity

Lead Time (hours)

0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5 6 6.5 7 7.5 8 8.5 9 9.5 10 10.5 11 11.5 12 12.5 13 13.5 14 14.5 15 15.5 16 16.5 17 17.5 18 18.5 19

Customer select material & order type Revise Pyt Terms/checks by CCC

CCC Register the order Prepare order materials / issue DN By DC

If new system (revise all checks) If old system (revise Down payment check) CCC. Email Finance to release the Order

If Not approved Checks return back to CCC CCC Inform Customer/Sales/DC to stop

Preparation Cancel Order

If approved Dc will continue order preparation Release goods on system by DC on delivery

day Email finance for Delivery approval

check customer Financial situation by finance If No: DC hold Delivery / reverse goods on

system If Yes: DC Print Delivery note Sign & Send it to warehouse

photo copy DN by WH Customer Receive Goods & DN

Create Invoice By finance Print, stamp, sign & photo copy invoices

Classify Invoices by Customer name Filling invoices for courier with cover sheet

Aramex deliver invoices within 24h obtain cus, signature & deliver it back to

finance DC send Signed DN by customer to finance

attach signed inv. With signed DN Archiving


Anomalies

We almost have 32 tags for the whole process

High Low High Low A B1 B2 C

1Mohamed Tahlaw y

A - Several types of orders (normal,old,new )

- - XRevise Pyt Terms/checks by CCC

12/05/2013 X X 1

2 Ghada Gow ily B - Flash orders has no process - X - CCC Regester the order 12/05/2013 X X 1

3 Enas Azmi C - w rong revision of checks before Regestration

X - - Revise Pyt Terms/checks by CCC

12/05/2013 X X 1

4 Toka Ahmed D - Blocked Customer is unknow n to ccc X - - If Not approved Checks return back to CCC

12/05/2013 X X 1

5 Toka Ahmed E - Blocked Customer Not Cleared to D.C on SAP

X - - If No:D.c hold Delivery / reverce goods on system

12/05/2013 X X 1

6 Enas AzmiF - Regestrtion for blocked customers w ith normal lead time - X -

Prepare order materials / issue D, N. By DC 12/05/2013 X X 1

7 Enas AzmiG - customer Select a part from his F.G (partial picking)

X - -Prepare order materials / issue D, N. By DC

12/05/2013 X X 1

8 Ahmed Madkour

H - Finished goods payment calculations are not clear to customer

- X - Revise Pyt Terms/checks by CCC

12/05/2013 X X 1

9 Enas Azmi I - D.C continue order preparation w hen f inance doesn' approve on release

- - XCCC Informe Customer/Sales/DC to stop Preparation

12/05/2013 X X 1

10 Toka AhmedJ - Delay in recieving checks to finance after regesteration X - - CCC Regester the order 12/05/2013 X X 1

IMP ORG Activity areaTag N° Recorded by Anomaly DEV

Effort Effect PriorityIssued Date


Prioritizing Problem to be tackle

Matrix of priorities Finance - CreditTags Register Documentation

High effect

A

16

B2

12

Low effect

B1

0

C

1

Easy to solve Difficult to solve


Understand the Root cause of the problems


The results

Action Plan


Gantt Chart For New Process

N Process activity Owner

Lead Time (hours)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38

1 Customer select materials

2 Receive customer cheques

3 review orders cheques

4 register the order

5 DC prepaire orders

6 send cheques to FIN

7 if No Cancel order after48 H

8 CCC send fg Sheet to cus

9 Issue delivery note

10 Send deliveries to FIN as inf

11 FIN Bill invoices

12 WH print DN send it to Amin

13 Admin print, stamp, attach inv DN

14 Send in & DN with materials

15 Customer sign DN & INV imm

attach sign DN & inv send it to FIN

* Each Unit Represent Maximum one working day

*Process Lead Time 5 working Days without Taking in consideration DC Cycle

Total Cycle time for new process 5 working Days


Expected Results

Reduce # of inv. By 96% from 2996 to 236 inv Q

Establish new KPI’S

Decrease Error in invoices

from 66 to 0

Minimize mistakes in delivering missing

invoice to to the wrong customer

Decrease Customer Complaints from 8 to 2 monthly

Process time by 80%

Ease the process


Expected Savings

Annual Saving resulting from DHL

Average No. of DHL shipment per day: 6 No. of working days in a month: 22 No. of Months in a year: 12 Cost of one DHL shipment: 26 EGP ______________________________________________________________ Total saving = 6 x 22 x 12 x 26= 41,184 EGP

Annual saving resulting from reducing No. of invoices and the new setup agreed with Sherif Azzam

Total No. of involved credit employee = 1 persons (Toka or Maher) No. of daily working hrs: 2 hrs No. of working days in a month: 22 No. of Months in a year: 12 ___________________________________________________________________ Annual hrs. saving = 2 * 22 * 12 = 528 hrs

Pres. final

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