Value Stream Map of AR Invoicing Process
Understanding Value Stream Mapping
Value stream mapping is a powerful tool used to visualize processes and identify areas for improvement. In my recent project, I leveraged this method to uncover inefficiencies in the accounts receivable (AR) invoicing process within the organization. By mapping the invoice flow, we gained valuable insights into how tasks were distributed among AR teams.
Identifying Inefficiencies
Through my analysis, it became evident that invoices were not evenly distributed among AR teams. This inequitable division contributed to an imbalanced workload, placing undue pressure on certain teams while others experienced downtime. Moreover, I discovered that a staggering 41% of total invoices were processed in the last week of the month, which highlighted a significant bottleneck in our operations.
Implementing Countermeasures
To address these issues, I had proposed and helped implemented new strategies aimed at enhancing our invoicing process. One key countermeasure was to ensure timely processing of invoices upon receipt. Additionally, we established a new system to equitably distribute invoices among the AR teams according to invoice types. This change not only balanced the workload but also increased overall efficiency, enabling teams to focus on quality and accuracy.