Using Defects to Drive Financial Gain

Presented By:

Jean Cunningham

Session Abstract:

Defects! They cost you money, but you can’t see them.

For many companies, some sales orders are entered with the wrong prices every day and customers send in payments that do not match the invoice amount. Both of these events are defects that require ongoing rework and they are directly related to each other, but most companies do not even know they are occurring. Nor, do they have the means to “connect the dots” if one of the defects happen to come to their attention. These are just two small examples of the many hidden daily defects that occur and go unnoticed (often for years) in nearly all companies. Each occurrence of every defect lowers the company’s productivity slightly and costs a little money. Some irritate the customer.

This seminar will show how to identify hidden defects in the business processes, and how to eliminate these defects and drive process improvement using metrics, improvement/kaizen events, and daily management. By creating a way to identify these issues as defects rather than just “normal” everyday work and implement a comprehensive fix, you can improve the financial performance of your organization, create capacity for growth, and improve the customer experience.

This seminar will be very specific and practical. The participants will leave with a variety of tools and methods to take action in their workplace immediately.

This session will benefit any manager or leader involved with the business processes beyond manufacturing operations including accounting, supply chain, customer service, logistics and office management.

Learning Objectives:

How to work with your team to:

  • Identify defects in business process using data
  • Identify root cause of defects to drive process improvement
  • Use systematic problem solving tools
  • Use kaizen events for problem solving
  • Manage for daily improvement with problem solving

Target Audience:

  • Lean leaders
  • Small business owner/CFO/operations/office manager
  • Customer service and order entry
  • Shipping and receiving/logistics
  • Supply chain
  • Controller
  • Accounting operations
  • Cash application and collections
  • Accounts payable

About the Facilitator:

As president of Jean Cunningham Consulting, Jean provides strategic lean guidance, management training, workshops, and kaizen events to a wide range of companies. Her goal is to enable clients to tightly integrate their business functions with lean operations, reduce waste, and maximize customer and product focus. In addition to her extensive consulting schedule, Jean speaks at lean conferences and teaches Lean Accounting for the Ohio State University Master of Business Operational Excellence program.

Jean is the co-author of two books awarded the Shingo Prize for Research: Real Numbers: Management Accounting in a Lean Organization, an essential text for learning Lean Accounting, and Easier, Simpler, Faster: Systems Strategy for Lean IT, a book on the practical application of Lean IT.

Jean is widely recognized for her pioneering work in Lean Accounting, IT, HR and other non-production functions. She is an original thought leader for The Lean Accounting Summit and The Lean HR Summit. Jean is a board member of the Lean Education Advancement Foundation and Automated Packaging Systems. She was the voluntary CFO of the Association of Manufacturing Excellence from 2006-2011.

For over 15 years, Jean was the CFO and VP of Company Services at Lantech, LLC and Marshfield Door Systems, Inc. It was during these tenures that she developed her lean acumen, driving lean from the manufacturing floor into the office functions to include finance, information systems, human resources, telecommunications, and others. Jean was a visionary in broadening the lean vision to establish a continuous improvement culture and one of the first true lean enterprises. Prior to joining Lantech, Jean was a financial professional with Digital Equipment Corporation and Westinghouse, holding a number of senior controllership and treasury positions.

Jean has a BS in Accounting from Indiana University and an MBA from Northeastern University’s Executive Program.