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Approach to Process Improvement

Approach to Process Improvement. A systematic approach to improving your performance. Ron Steinkamp, CPA, CIA, CFE, CRMA 314.983.1238 rsteinkamp@bswllc.com. Agenda. What is a Process?. Information, Staff, Materials, Resources. Results.

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Approach to Process Improvement

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  1. Approach to Process Improvement A systematic approach to improving your performance Ron Steinkamp, CPA, CIA, CFE, CRMA 314.983.1238 rsteinkamp@bswllc.com 1050 N. Lindbergh Blvd. │ St. Louis, Missouri 63132 │ 314.983.1200 1520 S. Fifth St., Suite 309 │ St. Charles, Missouri 63303 │ 636.255.3000 2220 S. State Route 157, Ste. 300 │ Glen Carbon, Illinois 62034 │ 618.654.3100 1.888.279.2792 │ www.bswllc.com

  2. Agenda 2

  3. What is a Process? Information, Staff, Materials, Resources Results PROCESS(n): A series of actions, changes, or functions bringing about a result. 3

  4. Why Improve a Process? Better products/services Increase efficiency by reducing/eliminating duplication of efforts or unnecessary steps Reduce performance issues Decrease costs Increase revenue 4

  5. 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 5

  6. Process Improvement Approach 6

  7. Phase 1 - Plan • Select the Process • Where are we over budget? • In what areas do we receive complaints? • Where do we need to improve? 7

  8. Phase 1 – Plan • Establish the Improvement Objective • Decrease cost? • Increase revenue? • Improve timeliness? • Improve efficiency? • Improve effectiveness? • Improve quality? 8

  9. Phase 1 - Plan • Organize the Team • 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? • Outsiders • Who is impacted by the process? • Who are the right people to improve the process? • Who can help us? 9

  10. Phase 2 - Document • Review Current Policies and Procedures • Determine if current policies and procedures are efficient/timely. • Do current procedures make sense? • Are they being used/followed? 10

  11. 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. 11

  12. Phase 2 - Document • 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. 12

  13. Example Flow Chart- Before Procurement Process- before improvements are made Item Needed Purchase Mgr Review Review Purchasing Policy Approves 3 day average turn around Sent to Requester No Purchase Order Filled Out Yes Order Placed 3 day average turn around Supervisor Review Policy Approves Sent to Requester 5 day average turn around No Yes Dept Head Review 11 day average turn around overall Approves Sent to Requester No Yes 13

  14. Phase 3 - Evaluate • Review process for adequacy of controls • Do controls properly safeguard? • Too many/few controls in place? • 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? 14

  15. Phase 3 - Evaluate • Discuss improvements with team • Identify areas to improve. • Brainstorm on ways to improve. 15

  16. Phase 4 - Revise Revise process flow chart for agreed-to improvements Test the revised process and update for lessons learned Present revised process to management/decision maker. 16

  17. Phase 5 - Finalize 13. Finalize the process • Update policies and procedures • Draft new policies. • Submit to management for review/suggestions. • Train resources on the process 17

  18. Flow Chart- After Procurement Process- after improvements are made Item Needed Under $1,000- 3 days Review Purchasing Policy Purchase Order Filled Out Over $1,000- 5 days Is Purchase Over $1,000 Send to Requestor Dept Head Approves No No Yes Order Placed Yes Purchase Mgr Review Approves Order Placed Send to Requestor No Yes 18

  19. Results Note: Total time for “After” is averaged based upon half under $1,000 and half over $1,000 19

  20. Results Summary Substantial time savings. Staff efforts can be shifted to other problem areas. Higher morale as process is simplified/streamlined. 20

  21. Process Improvement Approach 21

  22. QUESTIONS 22

  23. Connect Ron Steinkamp, CPA, CIA, CFE, CRMA Principal, Risk Advisory Services Brown Smith Wallace LLC 314.983.1238 (Direct) rsteinkamp@bswllc.com Visit our website, follow Brown Smith Wallace on LinkedIn and Twitter or Like us on Facebook! 23

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