Autoliv Inc.: Using Lean Practices to Improve the AP Reconciliation Process

Abstract

This case describes a process improvement project that occurred in collaboration between the finance department at an Autoliv Inc. facility and a graduate cost accounting class. The graduate students were asked to use their understanding of lean concepts to help identify and eliminate waste in the AP reconciliation process at Autoliv. Students were assigned to small groups, and the group with the solution that best fit the customer needs was chosen by the Autoliv finance team. The new process was implemented at Autoliv by the student team leader. The case study duplicates this collaborative experience and provides a real-world example for using problem-solving skills, accounting knowledge, Excel experience, lean practices, and creative thinking to prepare a feasible, simple, and sustainable improved process. There is no right answer to the case study, but the process to come up with a solution can be used for many different types of applications.

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

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Resources

Appendix A: Instructions for Building a Pivot Table

Step 1: Click Insert then PivotTable. A dialog box will pop up where you can select which data you want to be included.

Step 2: Select the data range you would like to include in the pivot table. For this case, it should be the whole worksheet. (This should be done for you automatically.) Make sure New Worksheet is selected in the bottom half of the box under “PivotTable report to be placed.” Click OK.

Step 3: From the PivotTable Field List on the right, drag “User Code” (“IC” for MC) and “Co” (“Company” for MC) down to the box labeled Row Labels. Drag “0-45,” “46-90,” “90+,” and “overdue” down to the box labeled Values.

Step 4: A drop-down menu titled ∑ Values should appear in the box labeled Column Labels. Drag this into the Row Labels box.

Step 5: Ensure that values are presented as SUM (not COUNT). To change this, click on each value individually (i.e., 0-45, 46-90, 90+, or overdue). In the drop-down menu, select Value Field Settings, then change COUNT to SUM, then click OK. Repeat this step for each value displayed.

The information now displayed in the worksheet is formatted according to the needs of this case study.

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

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