office of the chief financial officer united states department of agriculture 3 rd annual aphis...
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Office of the Chief Financial OfficerUnited States Department of Agriculture
3rd Annual APHIS Agreements Meeting
Lean Six Sigma Grants Process (LSGP)
Presented by
Matthew Faulkner
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Agenda Grants Management Line of Business Lean Six Sigma Grants Process USDA/Consortia Fit Gap Assessments Next Steps Related Initiatives
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Grants Management Line of BusinessOverview
In 2003, under the PMA, E-Gov initiative and PL 106-107 (Grants Streamlining), OMB established a Grants Management Line of Business (GMLOB) as a government-wide solution that supports end-to-end grants management. The goals of GMLOB are: Improve customer access Improve efficiency of the submission process Improve decision making Integrate with Financial Management System Improve efficiency of reporting procedures in order to increase usable information content Optimize post-award and closeout actions
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Lean Six Sigma Grants ProcessLean Six Sigma
Lean and Six Sigma are process improvement methodologies designed to increase the effectiveness and efficiency of an organization.
Lean is about speed and efficiency Six Sigma is about precision, accuracy, and customer satisfaction
Lean Six Sigma provides maximum value to consumers and clients with high quality products and services at the lowest possible cost.
DEFINE MEASURE ANALYZE IMPROVE CONTROL
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Lean Six Sigma Grants ProcessUSDA’s Grants Environment 200 grant programs in 16 agencies Over $60 billion in annual disbursements to over
134,000 grantees Diverse mandatory and discretionary grants Seven electronic systems and untold number of
manual processes Independent agency operations Lack of a Department-wide view of the grants portfolio 68% of USDA grants processes are manual Cycle times per phase range from 1-360 days 39% of initial applications received are unacceptable
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All common processes will be supported by a documented, integrated, streamlined, sustainable and transparent approach.
All exceptions will be justified and approved. A means to measure and improve customer satisfaction will
be designed. Cost for managing grants will be reduced. Number of payment methods will be reduced to two. System will collect LSS metrics. Service oriented architecture will be used. A single interface with the financial system will be created. Duplication of efforts will be eliminated. Administrative burden for programs & customers will be
reduced.
Lean Six Sigma Grants ProcessGoals
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Lean Six Sigma Grants ProcessProblems vs. Benefits
Problem: Retiring workforce and high turnover (est. turnover is 15% in 2010). Benefit: Business processes are formally documented and
streamlined to eliminate non-value added steps. Provides a standard process across USDA organizations.
Problem: Inflation and pay increases must be absorbed into flat budgets. Benefit: Lean Six Sigma targets reducing waste, time, and
steps in business process while increasing customer satisfaction.
Problem: Financial and IT regulations increase cost. Benefit: Lean Six Sigma creates a uniform process with minor
exceptions.
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Lean Six Sigma Grants ProcessAPHIS Scope
Plant and Animal Disease, Pest Control, and Animal CareCFDA # 10.025FY07 $175,049,437
Wildlife ServicesCFDA # 10.028FY07 $8,584,881
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Lean Six Sigma Grants ProcessModernization Challenge
200 Grants Programs To-Be Process Model
1 common, standardized process
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Lean Six Sigma Grants ProcessTo-Be Process Model
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USDA/Consortia Fit Gap Assessments
During the third quarter of FY2008, USDA validated the fit gaps conducted with the GMLOB Consortia leads to gain a better understanding of the Consortia offerings.
Following this analysis, USDA conducted a more detailed fit gap against the HHS solution.
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USDA/HHS Detailed Fit Gap Results 570 Discrete Functional Requirements
USDA 59% fit HHS 66% fit 42% overlap between USDA and HHS functionality 17% gap
Crosscutting Requirements not addressed by HHS LSS Metrics SOA Common Desktop Financial System Interface
Additional considerations Grant processing volume
Reported to OMB on December 31, 2008
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USDA Next Steps
Entered a reevaluation mode Conducting a detailed fit gap of the SAP software
solution
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Related Initiatives
Grants.gov Financial Management Modernization Initiative
(FMMI) Federal Funding Accountability and Transparency Act
(FFATA) American Recovery and Reinvestment Act (ARRA)
Office of the Chief Financial OfficerUnited States Department of Agriculture
3rd Annual APHIS Agreements Meeting
Questions?