Position Paper Rockwell Accounts Payable Event

Rapid Process Improvement Position Paper – Accounts Payable Event

Site: Assigned Rooms

Plant/Dept: Corporate Wide Business Process

Division: Corporate

Event Period: April 14 through April 19, including individual, pre-event preparations prior to April 14, April 14 Group Workshop kick-off meeting, follow-up group meetings and final A3 Report posting and Class discussions on Aril 19.

Pre-Event work: All group members to review the case study and familiarize themselves with the background and data provided. Address Assignment Questions 3a -3e to assist in identifying main problems and developing possible causes of poor performance.

Event Kick-off: April14 activities; concentrate on current conditions calculations and analysis in your first meeting. Draft several sections of the A3 Report

A3 Report Posting: April 19 in Classroom by 9:45 a.m.

Type of Event: Business Process Rapid Process Improvement

Purpose of Event: The event has two purposes: First, to review and understand the current Accounts Payable process and to develop a new process that satisfies our vendors by insuring prompt payment and reducing the number of past due payments. Second, to free up capacity in the AP department to permit central consolidation of AP functions from external sites

Scope: From the time of receiving incoming mail through invoice resolution and storage

Measurable Objectives: (1) Reduce process lead time from the current 6.4 weeks by 75%

(2) Reduce the utilization of AP analysts by 25%

(3) Reduce the number of process steps by 25%

(4) Reduce WIP by 75% Constraints:

(1) There is no budget for additional staffing.

(2) Any new software must be software already used within Rockwell Collins. (Check with Sponsor if any questions)

(3) The improvements must be accommodated within the current SAP system. (Check with Sponsor if any questions)

Considerations: Due to circumstances beyond our control, no Rockwell Accounts Payable personnel are available to serve on your group.

Group members are trained in some fundamentals of lean operations but are relatively in-experienced in applying lean to office processes and in leading RPI events.

The sponsor, however, is quite knowledgeable about the AP process at Rockwell.

Consultant/Sponsor: Professor Landel