LT Inc.

Francisco, Sharmaine M. | Gammad, Darell John | Geronimo, Patrick James | Hemosura, Limuel |
Rotao, Hannah Grace | Siscar, Christian Jason

Short Summary

Lt. Inc. started as a small, family-owned company. Over time, the company grew steadily and acquired
plants in the United States and many other countries. Most of its operations were departmentalized, and the
accounting systems varied among the many companies LT acquired.

Problem Statement

LT Inc. dealt with billing errors due to inconsistency among their billing personnel. The billing procedures
were confusing, inadequate and obsolete. The customer service and billing departments were often flooded with
complaints about the erroneous bills. Also, a lack of documentation added to the confusion and aggravated the
situation.

Cause of the Problem

Because of the rapid growth, the company was unable to get a grip on billing errors. Another cause is the
poor performance of the clerks, due to lack in training and knowledge. Billing personnel still stick to the policies and
procedure that they thought will lessen their problem regarding with the billing errors.

Alternative Course of Action

In order for the company to end this problem, LT Inc. appointed a Six Sigma team composed of employees
with various interdisciplinary backgrounds and expertise. They conduct a study relating to billing process and prepare
a flowchart. The next thing they did was analyzing how billing errors were resolved. As a result it showed that 70
percent of the billing errors were due to incorrect amount on the bill or billing for unordered goods. The team
conduct a walk through the billing activities for them to point out the sources of communication errors. Customer
orders arrived through mail, fax and phone. In order to avoid billing errors, each step were batched and lined up for
processing. Steps include, order taking, order preparation and order pricing, shipping and billing.

Conclusion

Billing errors was the main problem of the company, they had lack of action on how to deal with their
customers, and they had difficulty on meeting the needs and provide information immediately regarding with the
customers inquiries. But the company done an action in order deal with this problem. LT Inc. appointed a Six Sigma
team composed of employees with various interdisciplinary backgrounds and expertise. They discussed the problem
and conduct a research about Six Sigma, lean tools and techniques, learned from other companies and consulted
with experts in the field.

Recommendation

Our group strongly recommended that studying about the Six Sigma method, billing process and flowchart
is one of the best thing that LT, Inc. did. But having lack of knowledge and training on what they are doing can ruin,
not only their billing process, but also their job itself. LT, Inc. should teach or train their employees on how to do
multiple jobs so that they may enhance their skills in different aspects of job. In these case, the LT, Inc. can make a
job rotation among their employees. LT, Inc. should have an annual training to their employees to achieve the
maximum enhancement to their employee's knowledge and skills.