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HBOK 1-121

Title A Less Costly Billing Process: Using Lean Six Sigma to Reduce Errors
Author(s) Lakshmi U. Tatikonda
Source Quality Progress
Topic Listening to Customers

Performance Measurement

Data Analysis

Abstract A survey of U.S. businesses concluded that few of a business’ internal activities have relevance to its customers, yet the cost of customer billing errors is significant and isn’t detected by traditional accounting systems. Studies have shown that a five percent improvement in customer retention can add between 25 percent and 85 percent to the bottom line. Customer complaints provide valuable quality assurance and marketing data, but many companies find it difficult to capture such data. The quality tenets of Six Sigma and lean offer a solution. Applying these concepts can help companies identify root causes, streamline billing processes, and reduce billing errors. Sidebar articles describe one customer’s billing disconnect experience and how lean Six Sigma can add customer value.
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Reference Code 1-121

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