Process improvement in a finance shared services center

• Main Author: Alvarez, Karen C.
• Format: text
• Language: English
• Published: Animo Repository 2017
• Subjects: Organizational effectiveness; Management; Finance departments
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/5593
• Institution: De La Salle University

This action research is about the process improvement made within the Finance Shared Services (FSS) department of ABC Shared Services Center. The goal of FSS is to promote operational excellence and process efficiency on a cost efficient manner. However, within FSS there are still manual and complex processes that needs to be improved. In this research, we focused on the manual inventory valuation process of FSS Inventory Team A. We used Lean and Six Sigma concepts which represent the current phase in quality improvement methodology (Nicoletti, 2012). The Lean tool integrated to Six Sigma as described in this action research is the value stream map. In implementing Six Sigma, the DMAIC (Define, Measure, Analyze, Improve, and Control) method was used. Lewins Change Management Theory was also used as change management framework in this action research. The first cycle of the process improvement aimed to enhance the manual spreadsheets used in inventory valuation process. As a result, process efficiency was achieved through significant reduction of man hours spent in performing the process by more than 50%. The second cycle resulted from managements thrust to standardize processes in the organization by automating and aligning inventory valuation process of Inventory Team A with other ABC Company entities. Unfortunately, implementation of the second cycle was put on hold due to resource constraints that were beyond the control of the project team. The two cycles involve the collaboration and cooperation of action researchers and members of the project team. The outcomes of the action research approach are not just solutions to the immediate problems but are also important learning outcomes both intended and unintended, and a contribution to scientific knowledge and theory.