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PUBLIC SECTOR CASE STUDY

SUMMARY

Industry

Government/Crown Corporation

Challenges

Paper based process with more than 400activities

Quality issues came from outside theprocess

Little integration with corporateprocesses

Improvements had to be made withoutlarge capital investments

SolutionStreamlined process

Leveraged corporate systems

Aligned new process to corporatestandards

Benefits

Increased performance by 80%

ROI of 200%Decrease processing time by 80%

New automated cash management process creates 80% morprocess efficiencies at 25% of the cost.

Background

Since the implementation of cash management processes among various Government departm

more than 25 years ago, some processes have evolved to keep up with the ever-changing

technology. However, many of the business processes remained as paper based with a focus o

manual back-end processing.

Challenge

After commencing a working relationship with a Government department, we started to realize th

complexities of the cash management process. Such process consisted of more than 400 activacross 6-7 sub-processes, little documentation existed in terms of how the process worked, and

much of the workload was driven by errors that occurred when financial transactions were creat

To further complicate matters, the department felt that rather than integrating with the existing

standard automated processes within the Organization, they should develop their own cash

management processes. However, this solution simply resulted in higher costs, which was contr

to the Organizations focus on cost containment.

It was clear to us that the real challenge was changing from a back-end paper process to

front-end automated process without a significant capital investment.

Solution

After an in-depth process assessment and activity costing exercise using Lean Six Sigma

techniques , it became clear that the significant savings and improvements could be realized by

aligning processes and technologies with those that existed elsewhere within the Organization.

For example, at the time of our assessment, all cash management requests were initiated via pa

based forms. However, should the department leveraged the case management system that had

already been in place within the Organization for handling similar requests; unnecessary cost co

have been avoided.

At the end of the assessment, we recommended a new streamline process to leverage existing

corporate processes and technologies in order to dramatically improve process performance an

cost effectiveness without a significant investment. As a result, the department was able to

identify significant savings and reduce the turnaround time of all requests by 80%.

BenefitsOur recommended solution enabled the Organization to process cash management requests at of the cost of the existing process, and to improve performance by 80%. Other benefits included

1. A management model and tools to continually improve process performance

2. Increased focus on quality and customer service

3. Decreased processing time of 80%

4. Return on Investment of over 200%

CASE STUDY: Dramatically Improving the Cash Management Process Using

Lean Six-Sigma

Toppazzini and Lee Consulting

275 Slater Street, Suite 900Ottawa, Ontario

K1P 5H9

Tel 613-680-4333

Fax 1-866-615-9720

WWW.Tleecorp.com

http://www.tleecorp.com/http://www.tleecorp.com/http://www.tleecorp.com/