Reduction of Recurring Billing Errors of a Service Company Using Lean Six Sigma: A Participative Action Research

Article Details

Rex Jayson Tuozo, rex@6sigmaph.com, De La Salle University

Journal: Journal of Global Business
Volume 10 Issue 2 (Published: 2021-11-04)

Abstract

This paper aims to utilize Lean Six Sigma to describe and solve the recurring billing defects of a Philippine-based service industry corporation. Participatory Action Research (PAR) facilitated process improvement tools following Six Sigma’s Define, Measure, Analyze, Improve, and Control (DMAIC) methodology. The average monthly new return-to-sender (inaccurate and known) billing defects decreased from 2,348 to 1,114 from January 2018 to October 2019, representing a 52.56% reduction. The project has reduced RTS-related complaints by 46%, which canceled the plan to hire additional six customer service personnel. Also, the project reduced churn accounts due to RTS by 52.40%, which is equivalent to an annualized revenue of P37.58 million pesos. The research was performed in a Philippine-based service industry company. The results and findings cannot be generalized outside similar circumstances and situations.

Keywords: Lean Six Sigma, business process improvement, DMAIC, participative action research

DOI: https://static1.squarespace.com/static/5b85162bcc8fedc767ff5676/t/62022a769426aa1a612e64e8/1644309125386/JGB+1551.edited.pdf
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