In the previous part of our blog series, we looked at how tactical automation, RPA, and AI can enhance the efficiency of Accounts Payable (AP) operations. But what if technology isn’t the only answer? Sometimes, the real transformation lies in how we approach process improvement itself. In Part 6 of our AP Transformation series, we turn to time-tested methodologies – Six Sigma and Lean – to explore non-technical ways of driving efficiency and reducing waste in the AP lifecycle.
Why Methodology Matters in Process Transformation
While automation offers significant advantages, many AP challenges stem from deeply embedded inefficiencies – such as unclear workflows, inconsistent task ownership, or redundant steps. Methodological approaches offer a structured way to analyse, question, and ultimately redesign processes. These techniques help organizations lay a strong foundation of operational discipline, making future automation efforts even more impactful.
Six Sigma: Reducing Defects, One Process at a Time
Six Sigma is a data-driven methodology focused on eliminating defects and minimizing variability in business processes. In the context of AP, this could mean fewer invoice mismatches, reduced payment delays, or more consistent posting accuracy.
For existing processes, the DMAIC framework – Define, Measure, Analyse, Improve, and Control – offers a clear roadmap. You begin by defining the problem or inefficiency, then measuring current performance and analysing the root causes. Once identified, targeted improvements are made, followed by ongoing control mechanisms to ensure the changes stick.
For processes being designed from scratch or undergoing a complete overhaul, the DMADV framework – Define, Measure, Analyse, Design, and Verify – comes into play. This helps ensure the new process is robust, scalable, and aligned with organizational goals before it’s rolled out.
Lean Thinking: Eliminating What Doesn’t Add Value
Lean methodology takes a different but complementary approach. It focuses on eliminating non-value-adding activities, commonly referred to as “waste.” In AP processes, this might include unnecessary approvals, manual hand-offs, duplicate entries, or waiting for data from other teams.
Lean categorizes waste into three broad forms: Muda, Mura, and Muri. Muda refers to activities that don’t add value. Mura represents inconsistencies that create bottlenecks or errors. Muri reflects overburdening employees due to inefficiencies in the workflow.
To make these actionable, Lean practitioners use the acronym TIMWOODS to identify eight specific types of waste: Transport, Inventory, Motion, Waiting, Overproduction,
Overprocessing, Defects, and Skills. Recognizing these waste types in your AP cycle – say, too many approval layers (waiting), manual keying of already available digital data (overprocessing), or underutilized staff expertise (skills) – can open the door to meaningful improvements.
Process Discipline is the Bedrock of Smart Transformation
Both Six Sigma and Lean encourage a culture of continuous improvement. They aren’t just toolkits but mindsets that enable organizations to be proactive rather than reactive. When AP teams embrace these principles, they move from firefighting individual errors to systematically eliminating the root causes of inefficiency.
At Right Path, we help businesses not only automate but also optimize. Our Free Procure-to Pay (P2P) Assessment looks beyond technology to uncover where process redesign can deliver lasting value. Whether you’re ready to implement Lean, launch a Six Sigma initiative, or simply looking for smarter ways to streamline AP, we’re here to guide your transformation journey.
Explore our website to learn more and claim your free assessment today. Let’s build processes that are not just faster, but fundamentally better.
