UCT’s post-implementation process audit (Our CBI / Business improvement / BPR project). HERUG Presentation. Lisa Seymour Systems & Procedures Office University of Cape Town March 2002.
Systems & Procedures Office University of Cape Town
However implementing process changes after implementation is also hard for “process owners”
This business process was selected as one of the first processes needing reengineering:
Document the "as-is" process, refine the problem hypotheses, establish Key Performance Indicators (KPIs), measure baseline KPIs, draw-up opportunity charts for benefits
If you can’t measure it, you can’t manage it!
Quantifiable benefits are a strong motivator for change
Design the "to-be" process, revise the process flows and define any additional interventions required, establish benefits targets, carry out gap analysis (skills, costs), do micro-organisation design, define roles and responsibilities (RACI).
HOD / Faculty Office
This will reduce rework across UCT and facilitate timeous payment.
Vendor and Catalogue Clean-up
Establish Master Data Team
Create staff as vendors
Establish Purchasing Forums
Vendor RationalisationStep 3 cont’d: Intervention 3: Update the purchasing data and reduce “One Time Vendor” spend
Use the travel management module to create and update vendor masters for all categories of staff that receive advances or reimbursements
MASTER DATA AND CENTRAL PROCESSING
MANAGEMENT & ADMIN SUPPORT
BPR Phase 2
FOREIGN PURCHASING & PAYMENTS
BPR Phase 2
This will ensure end-to-end accountability for the purchasing and payment process.
Run a pilot implementation where there are significant uncertainties about aspects of the new process or the organisational design, use this to adjust process flows, validate benefits, and develop implementation plans.
It is better to sell a success that a concept!
The streams recommendations on Faculty-Managed purchasing were piloted in the Commerce Faculty
UCT is the pilot site for purchasing card software developed in ABAP by Secure Payment Solutions (SPS).
Purchasing using the card removes the need for R/3 purchase orders and the manual processing of associated invoices, and effects single payment to multiple vendors.
Transactions are uploaded onto R/3 from Master Card and then validated
Monthly statement from Master Card are matched to transactions and then posted to FI
Estimated that purchasing cards could reduce order volumes by an additional 16 000 p.a.
Implement. Put new organisational design in place, carry out training, establish performance measurements (KPIs, benefits tracking), set up Service Level Agreements (SLAs), hand over to line management.
Reduce low value by extending both pilots
Reduce OTV spend
Update purchasing dataStep 5 cont’dFinance Department implementation and KPIs
8400 per month
Perform implementation audits until the area passes a sustainability audit
How to ensure process owners take ownership
People changes take much longer than system changes
Inefficient processes become the scape-goat rather than the IT systems
A Purchasing Card enables the holder to order goods direct from pre-selected suppliers, within strict financial limits