Example Of Business Process Improvement

Example of Business Process Improvement
By Martin Smith
Contact Martin Smith at [e-mail].

Abstract: This project is an example of business process improvement, or re-engineering as it is sometimes called. The corporation was not radically re-structured; instead, one department achieved significant gains in efficiency and quality of service by re-designing several processes. A small team of front-line supervisors and managers did the design work and then carried out the implementation of the new process design. Two internal consultants supported the team. The project was characterized by a disciplined approach, strong executive support and quantified results.

Situation: The setting was the Accounting Department of a local telephone company. The department had about 500 employees. Most were assigned to two work centers. 3.5 million bills were issued each month to business and residence customers. Critical Business Issue: Reduce expenses by 8-10% in each of the next five years. Intervention: Re-design the CASH PROCESS. This process involves receipt of the customer’s payment, crediting the customer’s account and depositing the amount in the company’s account.

Exhibit 1. Relationship Map Specific to Cash Process

Re giona l Te le phone Com pa ny

Corporate Data Center
Cash Sum m ary

Loca l Te le phone Compa ny

Accounting De pa rtme nt

Coin Collections

Public Communications
Dishonored Check s

Dishonored Check s Error Reports Data Corrections Unidentified Paym ents

Revenue Accounting Office

Bank Central Cash Unit
Unidentified Paym ents Paym ents

Investigation Investigation Requests Requests Dishonored Check s Investigation Requests

Notify of Out of Balance Proof for Cash Sum m ary Balance Sheet Data

Customer Service Centers

Payment Agents

Refund Data

Paym ents Inquiries

Information Systems Support Group