Lean Six Sigma in the public institutions in the use of financial management

Abstract Lean Six Sigma, Lean and Six Sigma is a combination of methods. This business unit for the current financial management concepts, financial staff team building, financial analysis, management of the outstanding problems, the use of Lean Six Sigma on the financial management of institutions to study and put forward countermeasures and suggestions. This will improve the financial management of public institutions have some practical significance. Keywords:
Lean Six Sigma; public institutions; financial management; use

recent years, with Information technology and socio-Economic Development and social change continue to aggravate the cause of modern financial management methods unit management play an increasingly important role. Currently, institutions in deepening the reform of financial management process of continuous improvement, effectively promoting the smooth Development of the financial work. But in today's rapidly changing economy and found that the shortcomings of financial management, update management concepts and institutions, strengthen financial staff team, and optimize the financial business processes, to further standardize and strengthen the financial management of public institutions, and actively explore innovative financial management, is an urgent problem. This business unit for financial management problems, on the use of Lean Six Sigma methods to improve the financial management of public institutions and countermeasures and suggestions.


A Lean Six Sigma Overview

(a)
Lean Thinking Lean Thinking is based on the Toyota Production System developed, integrated production and single production to maximize the advantage of eliminating waste and reducing inventory and shortening the production cycle, and strive to achieve low cost production technology theory time. Lean is the guiding ideology of the actual needs of the customer to accurately determine customer value, value stream to identify and optimize the product and production driven by customer needs, the pursuit of perfection. Its ultimate purpose is to optimize the process as a whole, balanced logistics, efficient use of resources, elimination of all stockpiles and waste, to use the minimum capital investment to provide customers with the best value and purpose. American management scientist in 1990 proposed a complete set of production and management theory - Lean Accounting. That is the core value stream and eliminate waste for the purpose of lean accounting point of view.

(B)
Six Sigma Six Sigma is based on measurement, testing and management based on statistical methods, pioneered by Motorola in 1987. As to fully meet customer needs as the focus of modern quality management model, after 20 years of Development, Six Sigma has now become a world-class companies in many management paradigm. In essence, it is a total quality management methods from which evolved a highly effective business process design, improvement and optimization technology, and provides a series of equally applicable to the design, manufacture and service of new product Development tools . Six Sigma focuses on all the work as a process, using quantitative analysis of factors affecting the quality of the process, identify the most critical factors to be improved to achieve higher customer satisfaction. Six Sigma has now developed into a customer needs to determine the corporate strategy as the main objectives and product Development and design of the scale, through the use of data and process analysis to reduce process variation and defects, to improve business processes, thus increasing customer satisfaction and profit management methods, management philosophy.

(C)
Lean and Six Sigma Lean Six Sigma are highly complementary strengths, by the organic integration of Lean and Six Sigma, Lean Six Sigma established ideas and methods of management system, coordinating the use of Lean and two sets of tools of Six Sigma, the process will help eliminate waste, reduce the volatility process, while speeding up the process speed, improve quality levels, and truly maximize profits and customer satisfaction, win-win objective.


Second, institutions, financial management issues faced by the outstanding

(a) of the sense of weak financial management, financial management
most of the old ideas and institutions exist to varying degrees, knowledge of financial management not in place, extensive management, financial management, etc., regardless of the terms of reference, financial management can not fully adapt to the new environment of market economy, financial management concepts old and widespread, "and so on, to rely on" the phenomenon. Some leaders of the unit does not attach importance to financial management, financial oversight functions difficult to play, the phenomenon of the ongoing violation of discipline, and financial management, financial management staff involved in the awareness is not strong. Part of the financial management of public institutions on the lack of innovation, relatively poor operational capacity of the staff of financial management concepts and advanced management methods are poorly understood, there is no unit of financial management as to the agenda to study and explore, resulting in financial management and business management seriously out of line.

(B) financial professional quality is not high, professional ethics is not strong
staff engaged in financial work not only have financial and accounting expertise, but also must master the Bank's financial and accounting regulations, tax regulations and other financial regulatory system. Part of the irrational structure of financial personnel and institutions, knowledge of aging, outdated managerial concepts, lack of financial literacy, money management behind strong sense of professional ethics, on the accounting system and regulations are not familiar with, dealing with operational capacity is not high, are used by unit leaders told work, resulting in an unreasonable financial officers of the financial income and accounting irregularities mood regulation, weak supervision.

(C) the concept of weak financial analysis, financial analysis and management loopholes
the general requirements of the institution by the state finance all or part of the grant, formed a business unit of accounting is only concerned about the neglect of the status of financial analysis . Financial officers generally end with a quarterly accounting report or final statements of the case instead of financial analysis. Financial analysis units even if there are ambiguous financial analysis, form a single, high quality phenomenon, the analysis is not enough to take a flexible and innovative. Personnel involved in financial analysis, management awareness is not strong, fewer opportunities to participate in the management unit, unit operations of the current situation, problems and future development, lack of full understanding, and can only passively through the financial revenue and expenditure to determine, it is difficult to provide effective decision-makers the basis of financial Information, financial reports for managers to make scientific decision-making functions greatly weakened.


Third, the financial management of the implementation of Lean Six Sigma Lean Six Sigma strategy

is to eliminate waste and maximize profits unification of people, process and technology integration, is the world's most practical, the most advanced management methods theories. Lean Six Sigma applications in the financial area should management philosophy, management personnel, Information management systems, financial analysis, management, reform and innovation, and actively promote the modernization of financial management, and gradually establish a market economy and institutions and development requirements, scientific Lean Six Sigma financial management system.

(A) establish a market economy and institutions and financial development requirements of the Lean Six Sigma management philosophy
not advanced financial management concepts, there is no advanced financial management, the concept behind the management of the major causes of backwardness. Construction of Lean Six Sigma so the primary task of the financial management system are: institutions of all personnel, especially management leadership to establish a market economy and unit development requirements, financial management of the scientific concept of Lean Six Sigma. Specifically: we must first establish the concept of maximizing value creation and improve the time to do it right, good quality and efficiency, eliminating the root causes of mistakes, at the elimination of waste at source, minimize costs, improve resource use efficiency, and create maximum value; Second, we must establish the concept of business process-oriented, process control PDCA cycle through the rules and DMAIC (Define, Measure, Analyze, Improve, Control) scientific method of business process improvement, standardization and continuous repeated improvements accumulate, consolidate management infrastructure; Finally, to establish the overall concept and system, the height from the global and systematic implementation of Lean Six Sigma Financial theorem of ideas, through the system to optimize business processes, management processes, workflow, and ultimately to " the best quality and lowest resource products, the social needs quick response. "
(b) building a high-quality financial management team of Lean Six Sigma Lean Six Sigma
successful implementation requires the active participation of all financial staff and support of all the staff needed to work spontaneously, to use. In recent years, China carried out reform and budgeting, the establishment of a centralized treasury payment system, the implementation of the government procurement system and a series of financial reform. These new requirements of the financial management business unit managers and financial officers should be promptly change their ideas and raise awareness. In addition to the professional should have knowledge and professional skills outside of, but also familiar with relevant state laws, rules, regulations and national unified accounting system, and strictly abide by professional ethics. At the same time, Lean Six Sigma team also proposed to update the quality requirements: 1. New ideas, to establish a Lean Six Sigma to adapt to the concept of collective spirit and sense of ownership, can be self-conscious management. 2. To multi-skill, more than one person can post operation, and ability to participate in management. 3. Have a spirit of collaboration groups, relying on collective wisdom to solve the problems of work and management. 4. Adhere to the principle of giving priority benefit value, Lean Six Sigma requires that all staff should put into action, to eliminate all inefficiencies and waste, continuous improvement and continuous improvement. Therefore, institutions should step in a strategy to build a high-quality financial management team of Lean Six Sigma to enhance the overall level of team, and constantly adapt to meet the needs of modern financial management.

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(c) full use of computer technology, building management system, Lean Six Sigma Financial Information
1. To financial management as the center, promoting the cause of the application of computer network technology units, combined with the actual situation in each unit, and actively the introduction or development of the unified integration of financial and business management software, according to "long-term planning, step by step, highlighting key" principle, development and application in order to gradually build Lean Six Sigma financial Information management system, the flow of information to achieve financial process , the integration of logistics and cash flow and digital sharing, security business unit budgets, billing, monitoring, standardization of financial management, lean and efficient. 2. From the start of financial management weaknesses, and establish financial management as the core of the internal information management system, through the network means and a unified financial management software, using Lean Six Sigma methods for processing of accounting data for scientific decision-making to provide accurate basis. For those financial rules and regulations, exclusion of computer programs can interfere with the human factor into the information technology solution is not timely, asymmetry and poor supervision, the lag problem. 3. To establish a good communication mechanism, enhance the cost-effectiveness of management institutions. A good communication mechanism for the units used to grasp the situation of financial revenue and expenditure to provide comprehensive, timely, accurate information will help departments and staff communication and coordination, the resulting relevance of accounting information, authenticity and transparency will be further improved, thereby enhancing capital efficiency and enhance financial management.

(D) the use of Lean Six Sigma to improve business unit financial analysis, provide a scientific basis for major decisions
in Lean Six Sigma quality management process, each only 3.4 million chance of error or failure. All work will be broken down into business processes, the use of quantitative methods to analyze the factors that influence value process to identify the most critical factors to be improved to achieve higher customer satisfaction. It emphasizes data-based, through data collection, analysis and utilization for management to provide clear and clear objectives. In the past, public institutions focused on financial management accounting of financial data only, afterwards, auditing, reimbursement and other routine work, neglect of important decisions from the perspective of financial management to provide basis for decision making. Quality management in the implementation of Lean Six Sigma, the DMAIC process optimization can take full advantage of the unit's revenue and expenditure, expenditure structure, the actual target of the planned targets with continuous and progressive analysis to identify the links between the project and impact factors, the key difference between the derived indicators and major changes in trends, creating a financial analysis clarity, level and strong, and true and reliable data obtained. Financial analysis for only the use of advanced management methods and analytical tools, institutions can significantly reduce the financial cost of major policy decisions for the healthy development of institutions to provide a scientific basis.

(E) the use of Lean Six Sigma methods to improve the quality of financial business process management
the financial institutions sector is the core unit of Economic management, and its level of quality management, business process directly affects the efficiency and error rate efficient use of funds and institutions, asset integrity and effectiveness of financial control and oversight. The use of Lean Six Sigma system method can enhance the quality of financial business processes. The specific implementation process: the definition phase, drawing flow chart to determine and identify units to improve aspects such as financial institutions often can be decomposed into the daily business process audit reimbursement, payment registration, preparation of accounting documents, bill posting, preparation of accounting statements, etc. to determine the preparation time, error rate, etc. for the improvement goals; measurement phase, we have a clear method of target and measure to determine the input and output indicators and the relationship between process indicators, such as financial statements for the first time may be passing rate, opportunities defects as measured and calculated indicators; analysis phase is to point out the key indicators of these potential factors, such as reimbursement audit, to analyze the budgetary arrangements, the relevant procedures, the existence of such factors as the amount of defects, etc.; improvement stage is the analysis phase find out on the basis of the main reasons, put forward solutions to problems; control stage is the implementation of new business process solutions, the establishment of a new process control system and monitoring system, continuous real-time monitoring, adjustment and control, until the improvement target (error rate, etc.) to achieve the desired state, and ultimately improve the quality of financial business process management objectives.


【Main References
[1] Chen Mingkun. Lean Accounting [M]. Economic Science Press, 2007.

[2] Marin, HE Zhen. Six Sigma Management (second edition) [M]. Renmin University of China Press, 2007.

[3] Chou Xuenong. of our lack of financial management institutions and improvement [J]. modern business, 2008 (10): 258 -259.

[4] Golden, Jin Guoqiang. Lean Six Sigma-based service management innovation in precision operations [J]. Research and Development Management, 2006 (10) :99-105.

[5] Guo Gap. On China's financial system reform institutions [J]. ACCOUNTING, 2006 (8) :20-21.

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