Approach to Process Improvement
A systematic approach to improving your performance
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Ron Steinkamp, CPA, CIA, CFE, [email protected]
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Agenda
•What is a Process
•Why Improve a Process
•Goals of Process Improvement
•Process Improvement Approach
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PROCESS(n): A series of actions, changes, or functions bringing about a result.
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What is a Process?
Information, Staff, Materials, Resources
Results
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• Better products/services
• Increase efficiency by reducing/eliminating duplication of efforts or unnecessary steps
• Reduce performance issues
• Decrease costs
• Increase revenue
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Why Improve a Process?
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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
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Process Improvement Approach
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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?
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Phase 1 – Plan
2. Establish the Improvement Objective– Decrease cost?– Increase revenue?– Improve timeliness?– Improve efficiency?– Improve effectiveness?– Improve quality?
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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?
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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?
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Phase 2 - Document
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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.
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Phase 2 - Document
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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.
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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
Yes
Sent to Requester
No
No
No Yes
Procurement Process- before improvements are made
3 day average turn around
3 day average turn around
5 day average turn around
11 day average turn around overall
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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?
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Phase 3 - Evaluate
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9. Discuss improvements with team– Identify areas to improve.– Brainstorm on ways to improve.
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Phase 3 - Evaluate
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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.
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Phase 4 - Revise
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13. Finalize the process
14.Update policies and procedures– Draft new policies.– Submit to management for
review/suggestions.
15.Train resources on the process
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Phase 5 - Finalize
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Flow Chart- After
Item Needed
Review Purchasing
Policy
Purchase Order Filled
Out
Procurement Process- after improvements are made
Is Purchase
Over $1,000
Dept Head Approves
Send to Requestor
Order Placed
No
Yes
No
Yes
Send to Requestor
Purchase Mgr Review
Order Placed
No YesApproves
Over $1,000- 5 days
Under $1,000- 3 days
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Results
Average Time Under $1,000 Over $1,0000
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4
6
8
10
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BeforeAfter
Note: Total time for “After” is averaged based upon half under $1,000 and half over $1,000
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• Substantial time savings.• Staff efforts can be shifted to other
problem areas.• Higher morale as process is
simplified/streamlined.
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Client Logo
Results Summary
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Process Improvement Approach
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Client Logo
QUESTIONS
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Ron Steinkamp, CPA, CIA, CFE, CRMAPrincipal, Risk Advisory ServicesBrown Smith Wallace LLC314.983.1238 (Direct)[email protected] Visit our website, follow Brown Smith Wallace on
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