Approach to Process Improvement

transcript

A systematic approach to improving your performance

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Ron Steinkamp, CPA, CIA, CFE, CRMA314.983.1238rsteinkamp@bswllc.com

Agenda

•What is a Process

•Why Improve a Process

•Goals of Process Improvement

•Process Improvement Approach

PROCESS(n): A series of actions, changes, or functions bringing about a result.

What is a Process?

Information, Staff, Materials, Resources

Results

• Better products/services

• Increase efficiency by reducing/eliminating duplication of efforts or unnecessary steps

• Reduce performance issues

• Decrease costs

• Increase revenue

Why Improve a Process?

Goals of Process Improvement

• Identify and understand the root causes of performance issues

• Develop recommendations to mitigate the causes

• Redesign the process to achieve higher levels of performance

Process Improvement Approach

Phase 1 - Plan

1. Select the Process– Where are we over budget?– In what areas do we receive complaints?– Where do we need to improve?

Phase 1 – Plan

2. Establish the Improvement Objective– Decrease cost?– Increase revenue?– Improve timeliness?– Improve efficiency?– Improve effectiveness?– Improve quality?

Phase 1 - Plan

3. Organize the Teama. Internal

- Who is impacted by the process?- Who is the best person to lead the team?- Who are the right people to improve the

process?

b. Outsiders- Who is impacted by the process?- Who are the right people to improve the

process?- Who can help us?

4. Review Current Policies and Procedures– Determine if current policies and procedures

are efficient/timely.– Do current procedures make sense? – Are they being used/followed?

Phase 2 - Document

5. Walk through the process– Interview Managers and Supervisors.

• What needs to be improved?• What concerns them?• How would they improve?

– Interview the people who do the work.• What needs to be improved?• What concerns them?• How would they improve?

– Observe the process.

Phase 2 - Document

6. Develop a flow chart for the process– Review process from beginning to end.– Show flow of information and documents.– Identify individuals involved.– Indicate decision points.– Show time frames.

Example Flow Chart- Before

Item Needed

Review Purchasing

Policy

Sent to Requester

Supervisor Review Policy

Sent to Requester

Approves

Dept Head Review

Approves

Purchase Mgr Review

Approves

Order Placed

Purchase Order Filled

Out Yes

Sent to Requester

No Yes

Procurement Process- before improvements are made

3 day average turn around

5 day average turn around

11 day average turn around overall

7. Review process for adequacy of controls– Do controls properly safeguard?– Too many/few controls in place?

8. Review process for efficiency and effectiveness

– Evaluate steps in the process.– Any duplicate efforts?– Where can we save time?– Where can we be more effective?– How can we provide better service?

Phase 3 - Evaluate

9. Discuss improvements with team– Identify areas to improve.– Brainstorm on ways to improve.

Phase 3 - Evaluate

10. Revise process flow chart for agreed-to improvements

11. Test the revised process and update for lessons learned

12. Present revised process to management/decision maker.

Phase 4 - Revise

13. Finalize the process

14.Update policies and procedures– Draft new policies.– Submit to management for

review/suggestions.

15.Train resources on the process

Phase 5 - Finalize

Flow Chart- After

Item Needed

Review Purchasing

Policy

Purchase Order Filled

Procurement Process- after improvements are made

Is Purchase

Over $1,000

Dept Head Approves

Send to Requestor

Order Placed

Send to Requestor

Purchase Mgr Review

Order Placed

No YesApproves

Over $1,000- 5 days

Under $1,000- 3 days

Results

Average Time Under $1,000 Over $1,0000

BeforeAfter

Note: Total time for “After” is averaged based upon half under $1,000 and half over $1,000

• Substantial time savings.• Staff efforts can be shifted to other

problem areas.• Higher morale as process is

simplified/streamlined.

Client Logo

Results Summary

Process Improvement Approach

Client Logo

QUESTIONS

Ron Steinkamp, CPA, CIA, CFE, CRMAPrincipal, Risk Advisory ServicesBrown Smith Wallace LLC314.983.1238 (Direct)rsteinkamp@bswllc.com Visit our website, follow Brown Smith Wallace on

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