One of the biggest problems of the current times is that the only permanent thing is change. The foregoing requires managers to have administrative, safe, reliable and timely elements that allow them to detect fluctuations in processes, be they manufacturing or administrative, such as collection management.
Unfortunately, it must be concluded that this is not the case, managers lack tools that allow them to predict the behavior of processes, without being aware of the cause of the fluctuations from one day to the next, transferring to their subordinates the frustration that the lack of of knowledge.
It could be said that the Administration today works in a storm and crisis environment without having parameters that help it in the difficult process of making decisions. Could a pilot of a plane pilot a jumbo jet without the basic instruments? Would any of them board that plane with complete ease?
Surely not. However, companies are managed without the appropriate instruments. Some even invest in them. Amazing!.
Statistical Process Control (CEP) is the last name used to describe the use of statistical methods to control process variation. Since 1924 Dr. Edward Shewart started Quality Control, called Statistical based on the use of graphs and the use of simplified calculation methods. It is from then on that the behavior of products and services begins to be improved using valid methods to analyze the data, no matter what process it comes from.
What is the statistical process control system?
The CEP is the participation of all the elements that belong to an organization, aiming at doing things right the first time and leaving nothing to be corrected or rectified, contemplating with this a quality assurance in all the activities that are generated. In the organization.
CEP is the use of statistical methods to solve problems and control the different processes to continuously improve: quality, costs and productivity. It is the detection of a problem and the immediate solution of it.
Statistical process control
CONTROL: maintain some kind of situation within borders.
STATISTICAL: with the help of numbers or data.
PROCESS: combination of people, equipment, materials (documents) method and environment.
Basic principles:
Process variability:
In processes as in nature no two things are exactly alike.
Measurement:
Variations in a process can be measured.
Normal Variation:
The processes vary according to a well-defined figure (Frequency Distribution Curve or Gaussian bell)
Average value:
When measurements are made a good number of them tend to cluster around their average value.
Variations:
Variations in a process due to special causes cause a deformation of the normal frequency distribution curve.
Causes of variation in collection management
Every process implies a stable system of variation due to common or normal causes and special or abnormal causes. The reasons why the variation exceeds the proper limits of the system must be identified and corrected.
The normal or common causes of variation depend on the characteristics of each process, constitute 80% of the variation, always remain within the system and require management-level solution.
Abnormal or special causes depend on specific failures of the equipment or people, but constitute only 20%.
However, they must be located and corrected immediately.
In Collection Management there are also two types of causes, which is why you must know how to make that distinction in order to act on them.
In CEP implementation, the following tools are used:
Flowchart:
“Often the first step that a team looking for ways to improve a process is to draw a flow chart of that process. It is considered that it is not possible to improve a process, unless everyone understands what it is. The flow chart is an extremely useful method of delineating what is happening. One way to start is to determine how the process should work and then graphically plot how it is actually working. By doing so, flaws such as redundancy, inefficiency, or misinterpretations can be discovered immediately. " (5, IV, 112) ».
The diagram illustrates possible areas of waste such as duplication, delays, paperwork, simplification, and identifying where data could be obtained, since a very important aspect of the CEP is that the data be obtained as soon as it is available and as close to where it is produced.. This allows problems to be discovered before they happen, eliminating unnecessary costs and delays.
Practical example
With the desire to analyze the purchasing management process in a well-known firm, a study of the collection process was made. The purpose was to identify the long waiting periods between steps to achieve greater efficiency, obtaining the following result shown in the attached diagram:
The recommendations that emerge from the analysis are as follows:
Considering that by agreement with the clients they accept as proof of receipt the guide issued by the carrier, it is considered unnecessary to send the invoices to sign, since this may cause delays or loss of the document. It would be advisable to have a backup that guarantees the payment of invoices as well as a loyalty policy of the carrier.
Additionally, a variation of the collection tour format (attached) is recommended, showing the age of customer balances.
Frequency distribution and histogram
«The CEP depends on the reliability of the data obtained.
In order for the data to be used, it must be organized for interpretation and analysis. Charts can help organize and interpret results. »
"Variation is natural in every process. The frequency distribution helps monitor variation graphically. "
"A histogram is a bar graph that shows the frequency distribution with a great visual impact, allowing to compare what the process gives with respect to the established specifications or policies or to indicate the problems obtained in the data collection." (6, V, 2-9)
It can be used to show the frequency in days to pay the bills.
Practical example:
In order to detect the efficiency of the current collection system, a study was made of the number of invoices paid and the number of days to which they were paid. The Histogram yielded the following results.
Frequency distribution
|
FS FI BORDERS |
CLASS BRAND |
ABSOLUTE FREQUENCY |
FREQUENCY CUMULATIVE |
ACCUMULATED PERCENTAGE |
|
|
11.50 |
17.50 |
14.50 |
one |
one |
2.63% |
|
17.50 |
23.50 |
20.50 |
3 |
4 |
10.53% |
|
23.50 |
29.50 |
26.50 |
9 |
13 |
34.21% |
|
29.50 |
35.50 |
32.50 |
4 |
17 |
44.74% |
|
35.50 |
41.50 |
38.50 |
6 |
2. 3 |
60.53% |
|
41.50 |
47.50 |
44.50 |
8 |
31 |
81.58% |
|
47.50 |
53.50 |
50.50 |
two |
33 |
86.84% |
|
53.50 |
59.50 |
56.50 |
4 |
37 |
97.37% |
|
59.50 |
65.50 |
62.50 |
one |
38 |
100.00% |
recommendations
After constructing the histogram, it can be seen that the current collection system assigns that for the majority of invoices (63%) they are paid over 30 days. It is recommended to make a series of changes in the collection management and 90 days later make a new histogram to see the effect of the changes made.
Pareto chart
"Pareto charts are among the most commonly used graphical techniques. This diagram is used to determine priorities and is sometimes described as a way to separate the "vital few" from the "trivial many" (7, IV, 115).
«The Pareto diagram is a special type of graph to analyze attributes, that is, data that cannot be measured, such as errors, defects, etc. This analysis is based on the principle that most of the data collected is originated by very few causes. ”(8, V, 2-26)
To start this diagram, it is recommended to meet with the office staff and write down some possible causes using the "brainstorming" technique. Some possible causes may be: billing errors, lost invoices, wrong purchase order, lack of the O: C: number, poorly filed, forgotten, credited to the wrong account, payment received.
Practical example:
In order to achieve greater efficiency in the collection system, we proceeded to identify the reasons why invoices are late in being presented for collection. For this purpose, the following analysis was performed:
1. Various ideas of possible causes that could cause the delay in the payment of bills were considered, using the brainstorming technique.
2. The data obtained was summarized and arranged in the order of frequency with which they occurred
|
Causes |
Number of Observations |
Percentage of Total |
| Customer delay | fifty | 45.45% |
| Lost invoice | fifteen | 13.64% |
| Lack of signature in guide | 13 | 11.82% |
| Lack of Transportation Guide | 7 | 6.36% |
| Lack of signature on invoice | 5 | 4.55% |
| Wrong purchase order | 5 | 4.55% |
| Lack of purchase order | 5 | 4.55% |
| Wrongly credited | 5 | 4.55% |
| Payment already received | 5 | 4.55% |
recommendations
Identify some of the reasons why bills were paid late, concluding that around 46% is due to customer delay. Other aspects such as lost invoices correspond to 14% of arrears.
Another error that occurs is the lack of signature on the guide and the lack of a transport guide, both represent more than 18% of the problems.
Control charts
Run graph:
It is a graph that is used to know the behavior of a process for a specific period of time and then to help distinguish between special and common causes of variation. It can be used to identify days when it really takes time to pay bills.
Practical example:
With the desire to know the period in which the invoices are being collected, a study of the consecutive invoices is carried out for 30 days, indicating the time at which it was paid.
The result obtained shows that the average collection is at 37.5 days and not 30 as expected. This confirms the need for further analysis of the information obtained.
Graph of individual values.
“We know that variation is inseparable from the work environment. However, special causes, or those causes of variation that are not natural to the process need to be identified and eliminated.
Control charts are the tools that can effectively reveal when out-of-control conditions occur.
- Communicates the status of a process with others. Monitors improvement over a period of time and assesses the effect of changes made to the process. "(10, V, 4-9)
“Dr. Deming frequently refers to the need to use control charts to analyze processes. The goal, he stresses, is "to prevent people from pursuing the causes." If you know what this is about, the control charts are easy to use and certainly not beyond the capabilities of most workers. ”
"A control chart is simply a process chart with statistically determined upper and lower limits, plotted on either side of the process average."
Practical example:
In order to establish a daily control of the time that invoice payments are received, the following control chart was designed with the following results.
An abnormal behavior of the collection system is observed, the above is verified by the existence of a series of low points or above the established control limits (Plus, minus 3 standard deviations).
This indicates that there are a number of abnormal causes of variation that must be identified and corrected immediately before you want to make any changes.
Recommendation:
In order to have control over the collection process in each of the areas (geographic, collector, agent), it is recommended to follow the following steps:
1. Make the analysis of each zone.
2. Establish the natural limits of variation.
3. Detect if there are abnormal causes and correct them.
4. Keep the process under control by graphing the data of the data subject.
5. Obtain suggestions from those involved on how the process can be improved.
6. Once the processes are under control, give a new analysis of the data to analyze their behavior.
Bibliography
I. STATISTICAL PROCESS CONTROL SYSTEM, Hulera El Centenario, México, 1987.
II. CEP COURSE FOR OPERATION PERSONNEL, Celanese Mexicana SA, Mexico, 1988
III. FINANCIAL ADMINISTRATION, Robert W. Johnson, Cía Editorial Continental SA México, 1974, Pag. 168
IV. HOW TO ADMINISTER UNDER THE DEMING METHOD, Mary Walton, Editorial Norma, México, 1988
V. THE THIRD WAVE. STATISTICAL PROCESS CONTROL, Unisys, USA, 1988
