Also, contact points for escalation of issues are established. Some processes may require initial training related to software, business practices and accounting procedures of the client. In the first months, these training calls may be done every alternate day or weekly, depending on the complexity of the accounting and business practices, extent of existing process documentation and other related factor. There is also a sharing of list of holidays, work timings among other things.
Improving Purchase Order Process By 2 comments The accounts payable shared services center SSC of a large Ohio-based healthcare system completed a Six Sigma operational enhancement and reporting project. This case study reviews the course of the project which endeavored to establish standard invoice processing times and develop an ongoing system for monitoring how well those standards are met.
Over the last three years, the SSC processed an average ofinvoices a year for payment. The largest segment of its operations was, and continues to be, purchase order PO -based invoices. The apportionment was determined by taking the estimated total number of PO invoices to be processed in a given month divided by the number of working days within that month.
This number was then divided by the number of assigned employees. The formula used to calculate the quota was a frequent complaint of SSC employees and supervisory staff because it failed to recognize the variability in processing time when multiple line items were present on a PO invoice.
Establish a standard time range for completion based upon the total number of line items on a PO invoice.
Determine the process time for an invoice and whether that time fell below, within or above an established standard time range also based upon the number of line items on each PO invoice. Develop a comprehensive operations report that displayed employee processing times measured against standard time ranges.
Discussions between the SSC project team and the developers of the application led to the conclusion that the best long-term solution was to make modifications to the database.
Outside developers were contracted, and the database was modified to pull in all necessary data and make it readily accessible.
The exported data, referred to as raw data by the project team, was presented in three columns. These columns contained the name of the employee, the total number of line items, and total time, in seconds, for each PO invoice processed. The project team copied the content of the columns into Minitab to perform data analysis.
Despite being confident that the transactional raw data possessed a non-normal distribution, the project team performed a graphical summary on the response variable, processing time. Summary of Processing Time, Q4 The Anderson-Darling statistic, with its p-value being lower than the chosen significance level of 0.
This cued the project team to evaluate various nonparametric tests and determine which of these tests were the most appropriate going forward. An important factor in this decision was the wide variance in processing times.
The graphical summary displayed a range of 3 seconds to 3, seconds. The project team needed a nonparametric test that was effective against outliers and errors in data. With the nonparametric test selection now behind them, the project team focused its attention on acquiring an accurate understanding of the effect the total number of line items had on actual processing time of a PO invoice.
The outcome of the test revealed that the 33, PO invoices consisted of 77 separate groups of invoices possessing the same number of line items. Further, the project team found that 33, or 98 percent, of the PO invoices encompassed the first ten invoice groups. Number of Line Items Per PO Invoice Due to the high percentage of invoices in those first ten invoice groups, SSC management decided that standard time ranges would include only those first ten groups.
The project team next needed a statistical tool to help identify the standard range of processing times specific to each invoice group. Because of the ability to provide an upper and lower bound, the confidence interval was the instrument of choice.
The macro calculates nonparametric confidence intervals by using bootstrap methods code, which is a statistical technique used for making certain kinds of statistical inferences and involves a relatively simple procedure repeated so many times that the technique is heavily dependent upon computer calculations.
To apply the macro, the project team had to identify input data, the number of iterations to be used in estimating a confidence interval and the significance level. With processing time as the input data, iteration volume at 1, and a significance level of 0.
Bootstrap Macro — 1 With 24, data points, the bootstrap macro was unable to provide any separation between the upper and lower bounds.
To address this issue, the project team had to reduce the volume of data points being calculated.Case Study on Accounts Receivables Management & Medical Billing for an urgent care practice in Maryland, USA.
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The note provides documentation of a process simulation model that was prepared to simulate the invoicing work of 16 accounts payable analysts described in the case "Accounts Payable at Rockwell Collins" written by Professor Philip C.
Jones, Tippie College of Business, University of Iowa. The accounts payable shared services center (SSC) of a large Ohio-based healthcare system completed a Six Sigma operational enhancement and reporting project.
This case study reviews the course of the project which endeavored to establish standard invoice processing times and develop an ongoing.