TECH 50800 Project Bank Card Procurement Process
Champion/Define Phase Date: October 1, 2014 Team members: David
Shoffner
Slide 3
Project Selection Project A: Reduce time between requirement
identification till order and the amount of time processing the
request for Bank Card procurements. Project B: Reduce confusion and
establish a consolidated and consistent process for On/Off-boarding
staff.
Slide 4
Project Selection Prioritization Matrix & Ranking Project
Alternatives AB CriteriaBank Card On/Off Boarding Likelihood of
Success35 Time Impact (staff)41 Customer Satisfaction (person
w/need)35 Employee Satisfaction (staff providing service)41
Completion in 11 weeks.45 Magnitude of Scope -volume (10,000 &
200 annual transactions) 51 Total Ranking Points2318 *Scale is 0-5
showing impact (5 being the most impact)
Slide 5
Project Selection: Project A Project A: Time between
requirement identification and order for Bank Card Procurement
Process and processing time was selected because it showed the
highest impact to the organization (23 compared to 18). Another
reason Project A was chosen is because of its potential impact on a
large volume (10,000 annual transactions) process versus a
comparatively low volume process (200). Lastly, it was chosen
because Project B, after evaluating it in the prioritization
matrix, was determined to be a Just-Do-It project because of its
high impact on customer satisfaction and likelihood of
success.
Slide 6
Project Charter Components From your project charter document:
Stakeholder list Business Case Problem statement Goal Statement
Project Scope Project Objective Project Deliverables Project
Schedule
Slide 7
Stakeholder List Principle Stakeholders Champion Requestor
Person with need for item to be purchased. BC Holder Person who
makes the purchase Approving Official Approves purchase (3rd party)
BC Program Analyst Manages BC Program & Holders Secondary
Stakeholders IT Department(incl 508) Reviews request Health &
Safety Reviews request Property Reviews request Budget Reviews
request HR (training) Reviews request Printing Reviews request
Slide 8
Business Case: Time Between Requirement Identification Till
Order and Processing For the Bank Card Procurement Process (under
$3000), the aim of this project is to reduce the amount of time
from initial request for an item (or service) and when it is
ordered, along with reducing the amount of processing time to
prepare the Purchase Request (PR). Management has identified this
as an important project because the process consumes a considerable
amount of labor effort annually. This effort is in support of the
mission, however in a secondary manner. If less time is spent on
the process of procuring items for research, more time is available
to work on primary mission tasks. Additionally, there are no
standards or goals that identify the time involved with the
process. The consequences of not performing this project are not
knowing how much time is spent on the process and labor effort will
continue to be used on secondary processes, not primary mission.
The primary target of this project is to reduce the time spent on
BC processing. If the project is successful, the results should be
increased productivity on primary mission duties and increased
morale because the process is viewed as arduous.
Slide 9
Problem & Goal Statements Problem: The issue or problem is
the amount of time required for the purchase of an item via the BC
process. The time between identification of a need and the purchase
of the item or service and the time spent on preparation of the
purchase constitute the issue. The function of BC procurements is
done by a person known as a BC Holder. This duty is collateral or
secondary from their primary assignment. The impacts or pain of the
issue are: 1) Consumes time from the stakeholders: Requestors, BC
Holders and Approvers/Reviewers 2) Lowers morale because the
process is time consuming and perceived as arduous 3) Lowers
productivity because research is slowed or stopped when waiting for
needed items and time is spent on a collateral duty, not primary
duties. Goal: Reduce the amount of time from identification of need
to purchase and time spent on preparation for items being acquired
using the BC process so staff will have more time to work on
primary duties and research activities will be delayed less. The
time reduction goal is one day fewer from the identification to
purchase interval and 5 minutes from the preparation of the
purchase. The project is estimated to take 11 weeks.
Slide 10
Project Scope The process being reviewed begins when a
researcher identifies a need for an item and ends when the BC
holder has a completed PR and may place the order. Within the scope
of this process are the steps of definitizing the item to be
purchased, finding an appropriate vendor, assignment of funding,
obtainment of review approvals, and final approval. Receipt of the
item, record of verification, and cost allocation are not within
the process being reviewed. There are no funds available to the
project and the mandated computer systems will be utilized.
Slide 11
Project Objective The objective is to understand the amounts of
time required for identifying a need to when the PR is complete and
the amount of time to process the PR. When those times have been
measured, reduce the ID to PR complete time by 1 day and reduce the
processing time by 5 minutes. This additional time is expected to
keep research moving forward more efficiently and provide more time
to primary mission work because less is expended on processing
requests.
Slide 12
Project Deliverables The end results (long term effects) to be
delivered to those involved with the process are: 1) Reduced time
from requirement identification to purchase (1 day), 2) Reduced
processing time for the procurement (5 minutes), 3) Reduced
delay/stop time of research projects waiting on items, 4) More time
to work on primary duties for BC holders/approvers, 5) Increased
morale because the process is more refined and less arduous
Slide 13
Project Schedule Week of
Task22-Sep29-Sep6-Oct13-Oct20-Oct27-Oct3-Nov10-Nov17-Nov24-Nov1-DecMilestones
1234567891011 DEFINE xx x Project Charter, VoC, KPOVs, KPIVs
MEASURE xx x x Measurement Data ANALYZE xx x x ID: Barriers &
Time Consuming Steps IMPROVE xx x Steps & ideas to reduce time
CONTROL xx Methods & Training
Slide 14
Stakeholder Analysis Project Relationship Communication
Strategy Stakeholder Impact By Project Can Influence Project
Outcome Content/ Process Expert Controls Resources Has Decision
Authority Meet Regularly Invite to Meetings Copy of Minutes No
Comm. Needed Responsible for Communicat ion Champion x xxx Dave
Requestor xx x Dave BC Holder xxx x Dave Approver x xx Dave BC
Program Analyst x xx xx Dave IT Department x x Dave Health &
Safety x*x Dave Property x*x Dave Budget x x Dave HR (training) x*x
Dave * Invite as needed for specific items, then copy of
minutes.
Slide 15
SIPOC (Suppliers, Inputs, Process, Outputs, Customers)
SuppliersInputsPROCESSOutputsCustomers RequestorPurchase Request
(PR)ID NeedComplete PRRequestor BC HolderEmailReceive/Generate PRBC
Holder Approving OfficialPhone Call Find Vendor if No
Recommendation BC Program Analyst Vendor RecommendationRoute for
Approval IT DepartmentCriteria/GuidelinesRoute for Reviews Health
& SafetyInformationRoute for Funding Property Place Order
Budget HR (training) Printing
Slide 16
Voice Of Customer (VoC) Stakeholders Interviewed: BC Holders BC
Program Analyst Approver Requestors Budget IT
Slide 17
VoC - Strengths Electronic system, NOT paper Auto routing
system select who needs to review and it automatically cycles
through them Info buttons built into the form Prompts if certain
types of purchases are entered Web-based- easily accessible from
remote locations (work from home) and approvers in different geo
areas Electronic purchase log for BC Holders One system for getting
approvals Ability to enter own request, not required to send to
another person Has all fields necessary for processing requests
Integrated well with financial data system
Slide 18
VoC - Weaknesses Have to manually select the approver &
reviewers even if usually the same person Funding code numbers are
not sequential; more difficult to do searchers Pressing the back
arrow will lock the PR and it will no longer be accessible; must
start over the entire process. After each order function, cannot
move directly to the next, takes you back to home screen Some
requests come with incomplete info, requiring time to fill the gaps
(ex: justification for a special piece of computer equipment) Does
not automatically move to an alternate approver if the selected one
is out of the office
Slide 19
VoC - Opportunities Program allow users to set defaults
Feedback from users to web designers Auto forward to alternate
reviewer when primary is out of office Generate spending reports
Live links imbedded in system for mandatory sources, search engines
List of most commonly used vendors Tickler reminders at each level
if action has not been taken Response goals or time frames for
approvers/reviewers (ex: 2 days or 24 hours)
Slide 20
VoC - Threats No mechanism or capacity to do web changes (no
contract vehicle, funds, etc.) System may change in the future;
less efficient version, not user friendly, no info or built-in
prompts
Slide 21
Rough ROI Analysis Improvement of this process will benefit the
organization in two ways. 1) The first is the procurement of needed
items faster which will allow research to minimize delays or
stoppage. The long term benefit of this is faster turnaround of
research information needed by management for decision making. 2)
The second is less time spent on the process or preparing the
Purchase Request. With approximately 10,000 BC transactions per
year, if the process can be reduced 5 minutes and the average
hourly rate of a BC Holder is $50, then: (5 minutes * 10000
transactions/60 min per hr) * $50/ hr = $41,667 in savings Granted,
the staff are already being paid so this will not realize $41k in
hard savings, however it is soft savings in that the time can be
used on core mission activities. Therefore the organization does
save the funds.
Slide 22
Next Steps Complete VoC interviews Identify CTQ items Determine
KPOVs and KPIVs from the CTQ Tree Transition into the Measure
phase