procurement process lean event

8/19/2019 Procurement Process Lean Event

http://slidepdf.com/reader/full/procurement-process-lean-event 1/23

Procurement ProcessLean Event

Value Stream Analysis ofthe Procurement Process

at UTPA



Procurement Process Charter

Problem Statement The sequence of procurement events could be

further streamlined to reduce “friction” andimprove overall process cycle time

Approach We will use value stream mapping as a method

to visually represent the process, identify valueadded activities and improve or eliminate non

value added activities

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UTPA Procurement ImprovementTeam

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The UTPA Procurement Process

Purchasing $ %entral &eceiving

$ Accounts Payable

' “Procurement Services”

Start: User Need Stop: Closed

Approval

Approval(valuate

&equest

(valuate

&equest

Pay )

%lose out

*rder

Pay )

%lose out

*rder

&eceive

Part or

Service

&eceive

Part or

Service*rder

*rder



General Takeaways

The procurement process is already good+ This event allowed us to

“see” the overall process and determine ways to provide even betterservice levels n a lot of cases, errors created early in the process by the users ripples

downstream and causes delays in the process+ We need to address the

“upfront” process and educate users to enter the right information, so we

significantly reduce effort processing errors+ This requires e-plicit consideration of the communication and handoffs in the

system+ We saw the importance of eliminating handoffs and brea.ing down

organi/ational barriers

This process allows various members of different organi/ations to

communicate and wor. together to “fi-” problems+ We thin. this type of process is valuable and could be used to improve

more processes at !TPA+ We can do this ourselves, but it will require

!niversity leadership commitment0

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hilosophy of a Value Stream

Seek perfection by identifying and eliminating all

activities that are non-Value Added.


http://slidepdf.com/reader/full/procurement-process-lean-event 7/23!nclassified3

The 7 (or 9) ea!ly "#ns o$ %aste

8. Human Potential(Spending Effort Doing

the Wrong Thing)

9. Scatter (Inability to focus oncompletion of a task)


http://slidepdf.com/reader/full/procurement-process-lean-event 8/23!nclassified4

&alue "team 'ap Aen!a

% Training

SP*%

5oundaries

6oice of the

%ustomer

Set up the %urrent

State map

Wal. the value

stream and gather

facts

Day 1/2 Day 1/2/3

%omplete %urrent

State

7loor Plan Spaghetti

8iagram

nfo (-change %ircle

8iagram

Analy/e the %urrent

State map

Time 6alue Analysis

5rainstorming

%ells and Pull Systems

nventory strategy

Day 2/3

8ealing with

9onuments

Pacema.er Process

7uture State 9ap

a!i"#m!ro$ement Plan%

mprovement

9etrics

*ut brief

The Transformation Plan, or “Rapid Improvement Plan”, is the most

important output of the VSA. It is the list of actions you will tae to

remove waste and implement chan!e.

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"uppl#ers Inputs Process utputs Customers

6endors :eed

Procurement Process

;oods !sers

&equesters &equest Services 8epartments

;ov<t =!niversity 7unds Satisfaction 6endors

!T Systems Specs=&eqs Acceptance State

8epartment Proposals 8ocumentation nsurance

%ontracts %ompliance Audits

Technology 7orms Warranty

8ates and regulations 6isibility

>>>>

UTPA Procurement SIPOC Map

Start: User Need Stop: Closed

Approval Approval(valuate

&equest

(valuate

&equest&econcile&econcile

%lose out

*rder

%lose out

*rder

&eceive

Part or

Service

&eceive

Part or

Service

Process Steps

%urrent Procurement Process

*rder *rder



UTPA ProcurementCurrent "tate Process

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&o#ce o$ the Customer *"ystem +e,u#rements

?ow %ost9inimum Time

S.illed Services

?ow “@assle”%ompliant to &egulations

Acceptance = 6alidation

6isibility and %ommunication &$erall Process' %apable, &eliable, Agile, Predictable, and

Sustainable Procurement Process

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Analy-#n the Current "tate

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Process (fficiencies

Bields

;aps in Time between

Wor. and Wait Times

%ollect 8ata on %urrent State

7ill *ut

Travel 6oucher

7ill *ut

Travel 6oucher

Process

Step

Process

Step

Time and

Bield

(stimates

Time and

Bield

(stimates

%alculation%alculation

9 o n t e % a r l o S i m u l a t i o n 9 o d e l i n g

9 o n t e % a r l o S i m u l a t i o n 9 o d e l i n g

8efect

Analysis

8efect

Analysis



"ources o$ .r#ct#on

?ac. of 6isibility?ac. of 7low

%hoosing the Wrong Path = &outing (rrors

Training = nsufficient Cnowledge nfrastructure D Tools

%urrent purchasing e-perience is cumbersome

*rgani/ational silos E99 ) Accounts PayableF

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Procurement Process .uture"tate

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/ey Chanes to the ProcurementProcess mproved nformation for !sers

%ustomer Service %enter Who to call for questions @ow to fill out forms correctly 6isual wor. flow mproved Website nformation

mproved 7low 5etter information in ' 7ewer errors and overall less delays 7ewer handoffs ' fewer “inbo-” and “outbo-” delays

7ewer (rrors

9ore useful operator training 5etter Software Tools to do the Gob 7ewer *rgani/ational 5oundaries D AP and 99 reporting

to same organi/ation streamlines consistency of visionand message

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ran#-at#onal E0c#encyCom1#ne! AP an! '' roups

>+ 5rea. down organi/ational boundaries between 99

and AP

Similar to !T8EIF, a single “procurement services

department” with responsibility from need through delivery+

9ore manageable D fewer organi/ational boundaries

9ore %ommunication D Shared leadership and collaboration

"+ %onvene a !TPA “procurement services tas. force” to

loo. at restructuring procurement services

organi/ation+ ?oo. at organi/ation and tas.ing+

%onsider the leadership s.ills required to accomplish this in

the current AP 9anager supervisor search

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'o!ele!Improvements

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5y pushing sequential

tas. into parallel and

minimi/ing delays due tohandoffs, significant

improvements are

possible in the modeled

performance of the

7uture State



+ap#! Improvement Plan

Seit/, 8ec "JJH !nclassified">



Proress has alrea!y 1eun2

EPreliminaryF Wor. 7lowProcess for SP*

%ompleted ?AST :;@T0



Park#n Lot Items

*ther groups can 8ebit department accounts Ei+e+

Telephone and Police ServicesF without department

cogni/ance or approval

8isencumber remaining funds of P+*+s to

completely close out order &econciliation process

%ommunications D 7orms should be in one place

E*racleF

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General Takeaways

The procurement process is already good+ This event allowed us to

“see” the overall process and determine ways to provide even betterservice levels n a lot of cases, errors created early in the process by the users ripples

downstream and causes delays in the process+ We need to address the

“upfront” process and educate users to enter the right information, so we

significantly reduce effort processing errors+ This requires e-plicit consideration of the communication and handoffs in the

system+ We saw the importance of eliminating handoffs and brea.ing down

organi/ational barriers

This process allows various members of different organi/ations to

communicate and wor. together to “fi-” problems+

We thin. this type of process is valuable and could be used to improve

more processes at !TPA+ We can do this ourselves, but it will require

!niversity leadership commitment0

!nclassified"



!nclassified"1

It3s up to you 4

“f you thin. that you can, or thin. that youcan<t +++

Kyou<re right+”

@enry 7ord

procurement process lean event

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