Closing Process Improved by 300%

Operational Excellence
Written By INOVAT

Rapid acquisition preventing book closings in a timely manner.

Case Studies

Business Issue

$10B integrated Energy Company that provides power generation and services for industrial and retail residential consumers is growing by rapid acquisition and unable to close their books in a timely manner impacting:

  • Timely financial reporting

  • Accuracy in financial reporting

  • Labor effectiveness

  • Effectiveness and accuracy of other key processes: Invoicing, AP, Payroll, etc.

Approach Used

Kaizen and Lean Six Sigma

Flow rapidly assessed the situation and developed an improvement plan that included a focused effort with the key stakeholders to run a five-day Kaizen event:

  • Baselined the process through the upfront analysis of the process

  • Detailed analysis of the “as-is” state

  • Performed an error assessment and identified the “Critical to Quality” metrics

  • Identified the waste in the process

  • Developed a new “to be” state that reduced the waste, eliminated rework and improved the quality of the service

  • Trained the key stakeholders in Lean Six Sigma methodologies to eliminate waste

Results

Within 90 days, the team stabilized the process and reduced the peaks associated with new acquisitions. Flow Consulting also provided Lean Six Sigma training to the key stakeholders that provided the tools, methodologies and skills for the team to be successful. Flow Consulting then enabled the key stakeholders to not only learn from the event, but provided the training and skills that allowed the team to sustain continuous improvement that resulted in a five-day close by Q1 of 2016. The team continues to drive improvements with coaching from Flow Consulting.

The results of the efforts have improved the closing process by 300% and that has freed up labor to focus on more value-added efforts.

 
 
INOVAT http://inovat.com
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