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3-DAY EVENTJUNE 14-16, 2010
Grant & Contract Accounting:Unbilled LEAN Mapping
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Team Players
Amy Liu—Acting Project Co-LeadMary Jo Hershly—Acting Project Co-LeadKelly SalesLina NguyenNancy LindeGwen DardenKari LeDoug Kramer
Susan Smith & LuAnn Stokke, FacilitatorsMike Martyn, Consultant, Cheerleader and Coach
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“Team Photo, suitable for framing”
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Event Scope
Process Description: GCA is responsible for invoicing sponsors on grant & contract awards. Once award is established, GCA will prepare an automated or manual invoice to meet sponsors’ requirements.
Background: billing backlog is ~$15.8M (Dec. 2009); avg. $12M. Target is $2M and we’re out of compliance
Goals: eliminate the backlog of unbilled invoices to less than $2M.
Vision: review current invoice processing, ID gaps and redundancies, solutions, and develop new process for on-time invoicing.
Sponsor: Sue Camber, AVP for Financial Management
Event Overview
Reviewed Event Scope, AmyTrained in LEAN (Overview), AmyDeveloped Current-state Map, Lina and DougBrainstormed “pain points”, KellyTied pain points to the Map, KellySummarized Opportunities, KariEnvisioned Future State, GwenOutlined Action Plan/Next Steps, Mary JoShared Lessons Learned, Nancy
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Map Close-up
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Summary of the Current State
Summary of current state and stats:
# of Process Steps: Auto invoicing = 10
Manual invoicing < 17
# of Rework loops: up to 4
Process Times PT (process time): 1 to 16 days
WT (wait time): 5 to 139 days
TT (touch time): 3 to 6 hours
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Summary of Opportunities10
Reduce Variables in Contracts: 67 days + process time Partner with OSP Sponsor requirements/Exceptions
Lack of Process Controls Extension updates in FIN and JDE: $1.2M Slips through cracks: $20K
Highly Concentrated Unbilled: $5.3M Cost Share, Indirect Cost Adjustments LSDF, USFS, State of WA
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Summary of Opportunities (cont.)11
System Upgrades: reduce 35 hrs PT, 15 days WT
FIN/JDE set up at the same timeAccommodate online/email invoice submissions: 22%
of manualGCA Standards
InconsistenciesData Organization
Process ExpectationsOSP/Campus DepartmentsEscalate communication to get information sooner
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Future State
Reduce # of manual invoices by at
least 22%
Reduce time by 76% for processing
manual invoices
Reduce existing unbilled amount ($)
by 50%, or $6.5M in the short term;
eventual goal is $2M.
Also reduces future uncollected/aged
Next Steps
What next?
• Keep momentum going
• Find a space and make it ours
• Action Plan
• Who? What? When? What do we need?
• How are we doing?
• Check-in (30/60/90-day reviews)
• Never satisfied
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Lessons Learned
“Doug’s participation (as veteran) and Lily’s input was really helpful.
They asked pointed questions.”
“This team gained some enthusiasm that might have been lacking
before—we might have been bogged down.”
‘The best thing about this is it will really grab leaders’ attention; it
will have impact. We have so much support now.”
“I see how integrated our processes are, and how dependent invoices
are on budget set-up. It’s all so connected…almost everything starts
with budget set-up…invoicing…closing…”
“I had an ‘a-ha moment’—there’s the possibility of reducing work;
e.g., PC lists.”
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Lessons Learned (continued)
“I didn’t realize all that money was actually counted as unbilled.”
“We’re not capturing some of the unbilled with the current measures. We
might increase as we uncover it, but that’s okay…”
“We have the opportunity through the map to show Campus and process
partners our process and how we’re all affected.”
“Most of the pain and opportunities are towards the front of the process—if
we address that it may eliminate much of the work toward the back end.”
“There’s more here we can address than we thought.”
“The inconsistencies among the teams can be addressed—we can bring
consistency to the teams.”
“By mapping the invoice process, the possibility of the pain points can be
eliminated.”
…and many more…
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Our “Fuel”
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