BillingAdjustmentProcessImprovement–A3StoryboardDefine: Improve:Avayahasidentifiedopportunitiesforimprovingtheirtransactionalprocessforcontractadjustments.

ImplementautomatedreportingtocustomerswithexpiringPOstopreventtimedelaysandadjustments.

Objectivesincludemappingthecurrent-stateadjustmentprocesstocaptureabetterunderstandingofthecausesbehindadjustmentsandproposingafuture-stateadjustmentprocesswithstandardoperatingprocedures.

CreateandimplementdomesticSOAforS1adjustmentsandincorporateadjustmentreasoncodes.Conducton-goinginternalreviewtofacilitatecontinuedprocessimprovement.

Measure: Control:Datawascollectedregardingthenumber,value,reason,anddurationofS1billingadjustments.

FutureStatecontrolmapforon-goinginternalreview.StrictadherencetonewlyimplementedSOA.

Graphswerecreatedtocomparenetadjustmentvaluetoadjustmentnumberovertime.

Analyze: Benefits:Analysisofadjustmentfrequencies,impacts,androotcauses.

Targetedreductionofbillingadjustmentreserveby$1.6million(22%decrease)anda21.1%decreaseinthetotalnumberofS1adjustmentsperformed.

Paretochartsweregeneratedtoidentifythemostfrequentlyoccurringadjustmentreasonsandquantifyrevenueimpacts.

48%decreaseinthetotaldollarvalueofbillingadjustments—producinganestimatedtotalannualcostsavingsof$202,856.Abilitytocontinuallymonitorandimprovebillingadjustmentprocesswithincreasedvisibilityandreportingcapabilities.

AnFMEAwasconstructedtoidentifytop-priorityfailuresandfishbonediagramswereutilizedtodeterminetheirrootcauses.Thetop4failuremodesaccountedforover85%ofadjustmenterrors.