Transaction Intensity reduction vs Lean
April 17, 2012 in Best Practices, Business Process, Change Agents, Lean, Management, Quality, Six Sigma
I am working on transaction intensity reduction. It amused me as it is different from other quality methodologies. In six-sigma, we focus more on defect reduction. Lean focuses more on reduction of cycle time. In my current project, vendor keeps sending invoices against each transaction. Lean supports single peace flow. But, it is making transaction intensity very high and unmanageable at payable end.
Someone suggested single invoice single vendor per month. However, it will create batch processing. In all this, I feel it makes sense to have optimal batch sizes than single piece flow mindlessly. Overall cost and lead time implications should be seen.
In BPO, many calls may be automated or self-answered in FAQ format which may reduce transaction intensity. Sending bus for each passenger may not serve purpose. Batching has its own advantage. It reduces change over time in continuous process.
Six sigma experts may question need for multiple purchase order, invoices, HR training sessions, or any other voluminous activity and may plan strategy to reduce the transactions itself to make them more manageable.
Banks reduced transaction through diverting them from branch to ATM, internet or mobile. Ticket window in Indian rail has been diverted to internet, cash coupon, or monthly ticket etc.