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Lean thinking in the order payment process

Achieving a structural reduction of the number of Purchase Order issues

Rechten: Alle rechten voorbehouden

Lean thinking in the order payment process

Achieving a structural reduction of the number of Purchase Order issues

Rechten: Alle rechten voorbehouden

Samenvatting

The majority of parts that are necessary for the production of MHI Equipment Europe‟s (in future called „MEE‟) turbochargers is outsourced to external suppliers. After receiving parts, a packing list and an invoice MEE starts the payment process. The invoice is received by the finance department, which crosschecks the invoice with the purchase order and the packing list. If these three forms are matching the payment to the supplier will be made. When any discrepancy is discovered a PO-issue is defined.
“A PO-issue is any discrepancy in the process of ordering and receiving goods that troubles the normal supply chain and payment process.”
Solving the PO-issues is a very time consuming task for the assistant commodity buyer as well the commodity buyers themselves, currently taking up to one FTE. Besides this the PO-issue problem also involves a lot of money. As of December 2011 MEE had outstanding invoices totalling an amount of around €5.000.000. All the PO-issues should considered wastes that need to be prevented as much as possible. To get rid of the problem MEE consulted two graduation students to solve the problem.
The main research question was:
How can MEE reduce the number of incoming Purchase Order issues with at least 50% before February 2012? With the goal of structurally reducing the amount of time and money involved to solve PO-issues.
Research was done by following the DMAIC method of Six Sigma. This method is a way to make sure everything in the project is performed in the right order, it also makes sure that changes in the purchase process are not temporary but are maintained in the future. At the start of the project it was decided that Lean manufacturing contains the tools and way of thinking for properly solving the PO-issue problem. Every step in the process that does not have any value for the customer should be eliminated.

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Trefwoorden
OrganisatieHogeschool van Arnhem en Nijmegen
OpleidingAutomotive
AfdelingAcademie Engineering en Automotive
Datum2012-01-09
TypeBachelor
TaalEngels

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