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Lean Project Description

Lean Project Summary

The Kier A585 team addressed a persistent problem of invoices being placed on hold due to missing Goods Received Notes (GRNs), which resulted from delivery tickets going missing or not being shared promptly. This led to delayed payments, increased legal and administrative costs, and a risk of suppliers putting the team on stop. The team introduced knowledge sessions, mapped the process, implemented a standard operating procedure, gained access to supplier online portals for proof of delivery, and set up regular weekly scanning of tickets. Using a Pugh matrix, process improvements were chosen. These actions led to a 50% reduction in invoice queries, improved supplier relationships, and time saved across project teams. Ongoing training, process audits, and open communication were established to ensure sustained improvements and continued efficiency in invoice management.

Lean Project Benefits Summary

The implementation of new processes by the Kier A585 team led to a 50% reduction in invoices being placed on hold, significantly decreasing administrative costs and inefficiencies previously experienced. By establishing a standard operating procedure for delivery ticket handling, providing access to supplier online portals, and conducting regular training, the team not only improved workflow but also significantly reduced time spent on queries and late payments. The financial savings are substantial, with an anticipated annual saving of £43,908 due to reduced invoice processing volume and costs at £12 per invoice. Improved supplier relationships reduced legal and administrative costs, and sustained efficiency gains benefit the wider team, ensuring continued smooth project operation.

Roads Period Efficiency Reported

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Lean Construction Development Programme (LCDP) Project

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Stakeholders involved in project

Stakeholders Involved - Other

Problem Solving Strategy (DMAICT)

Define

The problem to solve was that a significant number of invoices was being placed on hold because Goods Received Notes (GRNs) were missing, mainly due to delivery tickets either not being provided or going missing. This led to payment delays, additional workloads in chasing missing documents, strained relationships with suppliers, and the risk of suppliers placing the Kier A585 team on stop, with 10% of late payments escalating to legal action. The impact was further seen in process inefficiencies and loss of valuable time. Key dependencies that needed attention included gaining access to suppliers' online portals for proof of delivery documents, implementing a standard operating procedure across both offices, and ensuring regular, timely scanning and sharing of delivery tickets. Achieving buy-in and awareness across teams, along with establishing clear ticket-handling guidelines, was critical for success.

Measure

To baseline and quantify the issue, the team began by tracking the number of invoices going on hold due to missing Goods Received Notes (GRNs) each month. Reports were pulled from our invoice processing system and supplier portals to calculate the total percentage of invoices under query. Initially, around 20% of invoices were being delayed, with up to 10% of late payments at risk of escalating to legal action. We also monitored how long invoices remained on hold and calculated the average time spent per week chasing delivery tickets and resolving queries. These metrics helped establish the scale of the problem and provided a clear benchmark against which to measure improvements once new processes and access to supplier documentation were implemented.

Analyse

To resolve the issue, Lean methodology tools such as process mapping and root cause analysis were used. By mapping the end-to-end invoice process, we identified the frequent absence of delivery tickets causing invoices to go on hold. We used the “5 Whys” technique to understand why tickets were missing, which revealed issues such as unclear handover procedures, lack of awareness about ticket importance, and inconsistency in where tickets were submitted. Root cause analysis showed that a small number of suppliers and process steps accounted for most delays. These observations highlighted the need for clear SOPs, improved communication between offices, regular scanning of tickets, and access to supplier online portals. The root causes addressed were knowledge gaps, lack of process ownership, and absence of standardisation.

Improve

Actions taken included providing knowledge sessions to raise awareness of the impact of missing delivery tickets, mapping processes, and introducing a standard operating procedure (SOP) involving both offices. Access was gained to supplier online portals to retrieve proof of delivery documents (PODs), and staff were guided to scan and send tickets weekly to a central point. A Pugh matrix was used to select the most practical solution, ultimately favouring process improvements over a costly online-based system. These actions resulted in a 50% reduction in invoices being placed on hold, reduced time spent chasing delivery tickets, and a significant reduction in late payments escalating to legal action. Supplier relations improved, efficiency increased for the Kier A585 team and wider project groups, and the risk of supply chain disruption was minimised.

Control

We gave everyone on the project an understanding of the process, the implementation of the ticket issues, and the benefits for both the company and the team members. The benefits of implementing the process were immediately seen and allowed us to reduce the number of tickets left open. To sustain the improvement, regular training sessions and refreshers were scheduled to keep everyone updated on the process and its importance. Clear documentation of the new SOP was made accessible to all team members, and key reminders were included in team meetings to reinforce good practice. Consistent communication between both offices, prompt feedback on errors, and celebration of team successes also helped maintain engagement. Attention was paid to keeping portal access up to date and adapting processes when needed.

Transfer

The team gained valuable knowledge on the impact of clear communication, thorough stakeholder engagement, and consistent process management. Ensuring everyone understood the reasons behind the changes led to an immediate reduction in open tickets and smoother workflows. With hindsight, it is recommended to engage all relevant stakeholders early, keep communication open, and regularly audit the new process to detect issues swiftly. We conducted a presentation to the site team and provided them with information on the new system, how we implemented it, and how we resolved the issue. Main processes changed included the weekly scanning and central collection of delivery tickets, access to supplier online portals, and the implementation of a simple, standard process for ticket handling and invoice management.

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Other Project Benefits

Meeting the needs of all users

Meeting the needs of all users - Other

Improving safety, health & wellbeing for all

Improving safety, health & wellbeing for all-Other

Delivering better environmental outcomes

Delivering better environmental outcomes - Other

Sustain a well-maintained and resilient network

Sustain well-maintained & resilient network- Other

Providing fast and reliable journeys

Providing fast and reliable journeys - Other

Achieve efficient delivery

Achieve efficient delivery - Other

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