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Breakthrough Process Improvement case study submitted by The Kanoo Gorup during 3rd Continual Improvement & Innovation Symposium organized by Dubai Quality Group's Continual Improvement Subgroup to celebrate World Quality Day 2011.
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1
Breakthrough Process Improvement Case Study
“IMPROVING VISA INVOICING PROCESS”
The Kanoo Group Central Accounts Team
(Ashraf Ahmed, Mr. Ahmed Ali,
Mr. S.A. Kapadia)
SERVICES DIVISION
2 2
• The Kanoo Group Services Division provides the following services to Kanoo Divisions, JVs and associated companies: – Arranging employment visa
– Visit visa from Immigration
– Consulate services (visa, passport renewal etc.)
– Attestation of papers from Chamber of Commerce, Ministries
• Six full time employees
• Covers Dubai and all Northern Emirates
Introduction
3 3
The processes involved in providing above services had the
following problems:
• Excessive paperwork
• Manual handling of documents
• Manual job registers
• Manual typing of invoices
– Approx. 400 per month
– Each includes 10 to 15 transactions
• Manual checking and correction of errors in invoices
• No information on status of jobs
• Delays in invoicing causing
– Blocking Company’s cash in work in progress
– Delays by customer departments in their own invoicing to external
customers
– Difficult to PROs to account cash float (AED 250,000)
Business Case
4
Stakeholders
• Internal customer departments, Kanoo
employees
• External customers (JVs, customers of
internal customers)
• PROs
• Service Accounts
• Central Accounts & Credit Control
• IT
• Development team (Gemini) 4
5
Voice of Customer
• Meetings held with internal customers (Kanoo Shipping,
Kanoo Travel and JVs) to understand their service level
requirements.
• Each internal customer gave their needs and
expectations:
– Cycle times for
• response to queries
• Invoicing
– Cost and service charge details in invoices
– Periodic account statements and status reports
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Voice of People
• Meetings held with PROs to know their problems and
suggestions..
• PROs’ required:
– Shorter cycle times for
• Re-imbursement of cash float
• Reduction in paperwork
• Easy access to information to be able to answer
customers’ queries
6
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Project Charter
The Problem Statement: • Reduce paper consumption for invoices (1,200 sheets per
month) by 50%
• Reduce man-hours required for manual typing of invoices from 300 per month to 50 per month.
• Reduce time wasted in searching for job status from 50 hours to less than 5 hours
• Reduce errors from 25 per 100 invoices to near zero error.
• Reduce invoicing cycle time from 30 days to 1 day.
• Reduction in customer complaints (from 10% of transactions to near zero).
• Reduction in cash float from AED 250,000/- to less than AED 100,000/-
7
8
Project Team
The teams involved: – Service Accountant
– PR Department
– IT Department
– Software developer (Kanoo JV).
8
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Project Timeframe
– Start Date January 2010
– Target completion by 30-April-2010.
9
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Process Flow (Before)
10
Start
Receive request from
customer
Records details in a
Job Register
Standard documents
requirements and
service fees informed
to customers
Verify documents to be
submitted
All OK? Not OK
PRO submits
documents to the
relevant authority and
pays required fees
PRO’s cash float
Record payment other
details in the manual
job register
Check manual job
register periodically
and follow up for
pending jobs
Answer
customers’
queries
Collect processed
document from the
concerned authority
File all papers in job
file, update register
Type manual invoices
& costing sheet
Delivery to
customer
Check by
Accounts
Dispatch invoices
to customers
Reimbursement
to PRO
End
Corr
ectio
ns OK
Not OK
OK
25% error
rate, 50 man
hours per
month
Customer
complaints
for delays
Customer
complaints
for lack of
information
Excessive paper
consumptions
(1,200
sheets/month)
Retyping lost
invoices Delays, time
consuming
reconciliation of
cash float
11
System Specification
A.The team developed a specification
document for an IT system considering the
VOC and VOP.
B.Designed formats for:
• Invoice
• Cost statement
• Job Status Report
• Work In Progress Report
• Proforma cost re-imbursement form
11
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System Specification
A.The team developed a specification
document for an IT system considering the
VOC and VOP.
B.Designed formats for:
• Invoice
• Cost statement
• Job Status Report
• Work In Progress Report
• Proforma cost re-imbursement form
12
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System Specification
C. The team identified various job types and
defined their require:
– Labour Department related
– Immigration related
– On-line visa
– E-wallet jobs
– Consulate jobs
• Sub categories of main job types were also
identified.
D. Modules were defined for each job sub-type. 13
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System Specification
E. Interfaces with other systems were defined:
– Pay roll system
– Main financial system
– Accounting rules were defined based on HR &
Accounting policies
– Auto generation of accounting entries were
specified based on the above rules
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System Development
A. Development team (Gemini) developed a
proto-type
B. Presentation was made to the project team
C. Proto-type system was evaluated by the project
team and auditors for one week.
D. Taking the feedback, the development team
developed “Visa Invoicing System”.
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Modified Process
Start
PR department
receives request from
customers
Verify documents to be
submitted
All OK? Not OK
OK
PR Deptt Secretary
enters job details in the
Visa Invoicing system
and creates a job
PR Deptt Secretary
allocates jobs to PROs
and hands over
documents to them
PROs carry out jobs
with the concerned
govt. deptt. and pays
the required fees
PROs updates job
status in the system on
daily basis
PROs prints the
Expense Claim form
on daily basis from the
system
Accounts verify the
expense claims and
settle the cash float
amount
Accounts raise invoice
to the customers
When the concerned
Govt. Deptt. approves /
disapproves the
application, PRO
collects the documents
and delivers to the
customer
End Customer queries
are answered
17
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Trial Implementation
A. “Visa Invoicing System” was implemented on
trial basis in April 2010.
B. Parallel run was carried out for the first one
week.
C. Minor problems were reported to development
teams and these were fixed.
19
20
Full Implementation
A. “Visa Invoicing System” was fully implemented
in May 2010.
B. System was updated in October 2010 to
include reference numbers given by the
authorities (e.g. Ministries).
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Benefits 1. Invoicing for Service Jobs become instant (invoice is raised soon after completion
of a job)
2. Response time to customer’s queries was reduced.
3. Customer complaints reduced from 10% of transactions to less than 0.1%
4. Internal customers’ cycle time for invoicing to their customers was reduced (e.g. Kanoo Shipping)
5. Tailor made reports could be provided to customers.
6. Cash float reduced from AED 250,000 to AED 90,000/-
7. Man-hours required for invoicing and corrections reduced from 400 to 50 man-hours / month. This enabled us to take care of additional volume of business without increasing man-power.
8. Net Income increased from AED 0.6 million to AED 1 million p.a. with the same number of employees.
9. Month end accounts closing became shorter due to integration with Payroll and Accounting systems.
10. Paper consumption for invoicing reduced from 1,200 sheets to 200 sheets per month.
11. Increased employee satisfaction due to shorter reimbursement cycle.
12. Auditors satisfied with process due to reduced risks.
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Horizontal Deployment
• The same system is being implemented in:
• Kanoo Group Abu Dhabi
• YBA Kanoo Group, Oman
• YBA Kanoo Group, Bahrain
• YBA Kanoo Group, KSA
• The system can be commercially marketed to other big
corporate groups and business services providers.
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Further Improvements
• The system will be made web-based so that customers
can query job status on-line from anywhere in the
world.
• Modular structure is flexible and it can take up more
modules with changes in Government policies (e.g.
Mission Visa)
23
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Single Point Lesson
• By involving stakeholders and systematically taking
their inputs, a flexible, user friendly and efficient
system can be designed.
• Consultation with stakeholders at each stage of
development helped faster implementation.
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Recognition
• Appreciation received from external and internal
customers.
• Appreciation of project team by Group Management.
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