balancing quality service with operational efficiency judy wright & marv sauer – april 19,...
TRANSCRIPT
Balancing Quality Service with Operational Efficiency
Judy Wright & Marv Sauer – April 19, 2011
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Current Situation
Cutbacks / decreased revenue
Increasing demand for services
Increased regulatory requirements
Increasing competition
Breadth of service
Complexity of service
How do we do more with fewer or
the same number of resources?
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Lean Methodology
Applies specific tools and methods in a consistent manner to eliminate waste and improve operational effectiveness
Based on the Toyota Production System (TPS) - a set of manufacturing techniques to increase profits through the continuous elimination of waste
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Lean Methodology
Driven by six principles
1. Define customer value
2. Identify the value stream
3. Make it flow
4. Pull it through the process
5. Eliminate waste
6. Create perfection
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Process
A process is any sequence of activities that satisfies a customer or business need or results in an output. It can be very simple, or extremely complex.
A B C D
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Process
A process is any sequence of activities that satisfies a customer or business need or results in an output. It can be very simple, or extremely complex.
A B C D
It has a beginning and an end
EndBeginning
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Process
A process is any sequence of activities that satisfies a customer or business need or results in an output. It can be very simple, or extremely complex.
Uses inputs to produce either a product or a service as its output
A B C D EndBeginning
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Process
A process is any sequence of activities that satisfies a customer or business need or results in an output. It can be very simple, or extremely complex.
Can be broken into a series of small steps or tasks
AA B C D EndBeginning
i ii iii iv v
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Process Redesign
Process redesign involves looking at a process and identifying areas of:
A
J
Exception report is run to identify
issuesB C D E
F G H I
Inefficiency
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Process Redesign
Process redesign involves looking at a process and identifying areas of:
AException report is run to identify
issuesB C D E
Waste
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Process Redesign
Process redesign involves looking at a process and identifying areas of:
AException report is run to identify
issuesB C D E
B
Duplication of Effort
B
B
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Process Redesign
Process redesign involves looking at a process and identifying areas of:
AException report is run to identify
issuesB C D E
Workarounds
B1
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Process Redesign
Process Redesign Ensures: Standardization of processes
Increases in efficiency
Incorporation of Best practices
New systems (technology) do not simply automate current processes
Technology (where used) is not driving processes, but that technology is configured to support processes
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Barriers to Process Redesign
Staff who are comfortable with the “way we’ve always done it”
Staff who are uncomfortable outlining and examining how they perform their jobs
Reliance on paper-based processes (e.g. Excel spreadsheet tracking and reporting)
Resistance to change
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First Law of Improvement
“Every process is perfectly designed to achieve the results it achieves”
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Second Law of Improvement
“If you want better results, get a new process”
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Why is Process (Redesign) Important?
Departments are frequently focused on “firefighting”
Many processes are designed to the “exception” rather than the “rule”
Cross-functionality provides greatest opportunity for collaborative improvement
Technology investments can be maximized when process improvements incorporate all features and functionality
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Process Examples
Student Processes Administrative Processes Admissions Registration Financial Aid Student Accounting Parking Bookstore Management
Accounts Payable Purchasing Position Control Accounts Receivable Hiring and Placement Status Change Payroll Time and Attendance Regulatory Reporting Compensation Administration
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Where to Start?
Identify sources of “pain”: Manual routing of items for approval
Multiple sign-off on purchase requests
Increased time
Identify sources of “waste”: Value added vs. non value added work
Redundancies
Duplication of effort
Use data to help prioritize and minimize
Go with your gut
Listen to the feedback provided by your stakeholders
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Time Allocation
Have all members of a department fill out a time allocation matrix, e.g. technology, purchasing, financial aid
Review the FTE allocation against client satisfaction (if available)
Review performance metrics and FTE allocation against peer or industry best practices
Use process redesign as necessary to improve departmental efficiencies
Revisit after major process redesign initiatives, new technology deployment, or every 3 years (whichever comes first)
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Technology Enablers
ERP System with built-in capabilities to efficiently adapt and streamline processes: Work Flow
Employee Portal (open enrollment, paperless pay) – self service
Student Portal
Data warehousing
P-Cards
Time and Attendance
Email or electronic communications
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Performance Metrics
Examples of performance metrics: Journal Entries Adjusted
Invoice Processing
Turnaround for purchase orders
Applications processed
Calls per day per person
Cost per student
Use metrics to help to determine whether your new process is working
Adjust when necessary
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Invoice Processing
JanFebMarAprMayJunJulAugSepOctNovDecJan
Issue Action Impact Owner Start Date Due Date Increased Process Days Train Peggy to cover AP when vacations / absences occur High Steve 08/15/07 09/30/07
Invoice Processing
-
24
48
72
96
120
Jan
Feb Mar Apr
May Ju
n Jul
Aug Sep OctNov Dec Ja
n
Month
Tim
e (H
ou
rs)
ActualTarget
Performance Metrics
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Performance ManagementPerformance Data Departmental Information
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Key Ideas
Redesign processes to enhance service
Focus on value-add activities only
Know how your staff spend their time
Leverage technology
Establish measures and then track performance
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Thank YouFor more information, contact:
Marvin Sauer, ManagerPlante & Moran, PLLC
Judy Wright, PartnerPlante & Moran, PLLC