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A large company in the network and telecommunications sector
Reduction of the work time allocated for billing and the billing amount
Problem:
Expensive experts end up spending too much time on billing & the amount billed is too large.
Objective:
To describe the billing process as value flows in different units and identify areas for development as well as provide recommendations for improving the process.
Background:
The company’s order-to-delivery process takes anywhere from a couple of weeks to a year, depending on the customer. During this time, data for billing is generated in the company's various units: production, design, purchasing, project management, project control. Additionally, subcontractors bill the company according to their own processes, and these invoices must be passed through as part of the company's execution. There is a lot of variation in work practices between units and individuals. Work is transferred from one person and department to another based on daily urgent situations and individual expertise. Billing is impossible to predict, and there is visibility only to individual persons.
Implementation:
The project began by mapping the billing process and all preceding process stages that affect it. The problems identified were then prioritized, and a root cause analysis was conducted for the largest ones, revealing several significant areas for development. Based on this, a process model was created that allows the most burdensome stages of billing to be outsourced to their own service center, which can also start creating more detailed processes and requirements for earlier stages of work, so that accurate information can be obtained in a timely manner.
Result:
A new unified billing model that can be outsourced, allowing for over 50% savings in project management time, as well as significantly reducing the billing amount by ensuring that incomplete information and documents do not proceed in the process.
