LT Inc.
Francisco, Sharmaine M. | Gammad, Darell John | Geronimo, Patrick James | Hemosura, Limuel | Rotao, Hannah Grace | Siscar, Christian Jason
Short Summary
Lt. Inc. started as a small, family-owned company. Over time, the company grew steadily and acquired plants in the United States and many other countries. Most of its operations were departmentalized, and the accounting systems varied among the many companies LT acquired. Problem Statement
LT Inc. dealt with billing errors due to inconsistency among their billing personnel. The billing procedures were confusing, inadequate and obsolete. The customer service and billing departments were often flooded with complaints about the erroneous bills. Also, a lack of documentation added to the confusion and aggravated the situation. Cause of the Problem
Because of the rapid growth, the company was unable to get a grip on billing errors. Another cause is the poor performance of the clerks, due to lack in training and knowledge. Billing personnel still stick to the policies a nd procedure that they thought will lessen their problem regarding with the billing errors. Alternative Course of Action
In order for the company to end this problem, LT Inc. appointed a Six Sigma team composed of employees with various interdisciplinary backgrounds and expertise. They conduct a study relating to billing process and prepare a flowchart. The next thing they did was analyzing how billing errors were resolved. As a result it showed that 70 percent of the billing errors were due to incorrect amount on the bill or billing for unordered goods. The team conduct a walk through the billing activities for them to point out the sources of communication errors. Customer orders arrived through mail, fax and phone. In order to avoid billing errors, each step were batched and lined up for processing. Steps include, order taking, order preparation and order pricing, shipping and billing. Conclusion
Billing errors was the main problem of the company, they had lack of action on how to deal with their customers, and they had difficulty on meeting the needs and provide information immediately regarding with the customers inquiries. But the company done an action in order deal with this problem. LT Inc. appointed a Six Sigma team composed of employees with various interdisciplinary backgrounds and expertise. They discussed the problem and conduct a research about Six Sigma, lean tools and techniques, learned from other companies and consulted with experts in the field. Recommendation
Our group strongly recommended that studying about the Six Sigma method, billing process and flowchart is one of the best thing that LT, Inc. did. But having lack of knowledge and training on what they are doing can ruin, not only their billing process, but also their job itself. LT, Inc. should teach or train their employees on how to do multiple jobs so that they may enhance their skills in different aspects of job. In these case, the LT, Inc. can make a job rotation among their employees. LT, Inc. should have an annual training to their employees to achieve the maximum enhancement to their employee's knowledge and skills.
