Financial Training UpdateModule Objectives Approach

Finance 101 – 1 Day

SSA Staff & Client Staff requiring general Finance introduction

• Understanding of how Business Decisions impact Company Financials

• Basics of Cost Accounting, Accruals, Accounting principles, Cash Flow understanding, Basic Financial Metrics

• Financial Statement Understanding

New Effort

Simulation – group exercise - classroom

Finance 201 – 1 Day

SSA Staff & Client Staff who need to understand financial impact of LSS

• Understanding of how and to what magnitude 6 Sigma projects impact a company’s financial performance & financial statements

New DevelopmentExtension of Simulation from Finance 101Group exercise - classroom

Finance 301 - Project Chartering – 4-6 Hrs.

SSA Staff & Client staff – writing good charters – financial benefits calculations

• Ability to write a well scoped charter to include benefit calculation

• MCs improve ability to charter, form, scope projects with clients

UpdateLecture/Workshop Exercises/Examples – classroom

Finance 302 - Valuation, Prioritization & Selection – 3-4 Hrs.

SSA staff & client staff – focus on project valuation considerations.

• Understand Project Valuation by Financial Categories

• Understanding of business and accounting problems around valuation

• Creating a framework for prioritization

New Development

Lecture/Workshop Exercises/Examples – classroom

Finance Policy & Processes (Finance Champion Workshop) – multiple meetings

Client Finance Champion

• Educate Client on the intricacies of the Financial 6Sigma Processes

• Establish the rules of engagement aka the Finance Handbook

Update

Workshop with FC – series of meetings over time

Fin Analyst Support Role – 1 Day

Client Financial Analysts

• Introduction to Six Sigma & Orientation• FA Role• FA Responsibilities• Project Workshop

UpdateLecture/Workshop Exercises/Examples - classroom

Finance 201 Project Ideas• BS/Cash Flow:

– DSO reduction• Cost reduction:

– Reduce cost of Raw Material (QC for RM) – also inventory project– Supplier consolidation project (reduce RM cost) – also inventory project– Scrap reduction project (probably select which mfg. step to apply improvement to)– Setup time reduction project (probably select which mfg. step to apply improvement

to) – also inventory project– Reduce Temp training time – also inventory project– Reduce office Sq Ft requirements– Reduce Mfg. Sq Ft requirements– MFG cost reduction (lower rate temp?)

• Inventory Projects: - Also Mfg. efficiency– JIT purchases (less – or no - lead time on orders)– Improved scheduling– Demand planning– Obsolescence

• Sales projects:– Price increase (through better advertising, features?)– Volume increase (sales force effectiveness)– Improve forecasting (perhaps see estimate of next month’s orders

Sample Six Sigma project template

Project Name: Reduce Office Space requirements

Problem Statement:Office space usage is disorganized and inefficient – requiring more square footage than ….. Currently leasing 700 Sq Ft at a rate of XX/Sq Ft/Mo

Objective:Implement 5s project/.controls to consolidate & reduce office space requirements by 20% before month-end.

Benefits:XX Sq Ft reduction in office space, at XX/Sq Ft – resulting in a monthly benefit of XX