Heather Millet IS&S Senior Banner Analyst Un-posted Journals Report (FZRFPDC) to Eliminate Waste

All slides originally developed and supported by William Peterson, LeanBP.com

Mission To provide quality and innovative financial services in partnership with and support of the overall goals and objectives of the College while promoting an integrated learning partnership between financial affairs staff and the customers we serve. Vision To demonstrate a substantial reduction in errors effecting the Finance Department by identifying and correcting journal errors with identified lean countermeasures applied by March 2017.

Charter Mission –To provide quality and innovative financial services in partnership with and support of the overall goals and objectives of the College while promoting an integrated learning partnership between financial affairs staff and the customers we serve. Burning platform – Reducing the amount of time and re-work in this process would free up staff to focus on other tasks and projects. Process Description –Two reports are generated showing journal errors. Those journals are then disapproved in Banner and sent back for correction to a Finance student. If no errors exist, then the journal is approved in Banner. If there are still errors, the process starts all over again. Problem Statement –This takes too much time and re-work, wasting valuable resources. Sponsor – Derrick Singleton Process Owner – Tammy Morgeson Team Lead – Sara Clements Facilitator – Heather Millett Team – Connie Murray, Tammy Morgeson, Heather Millett, Sara Clements, Aaron Beale

SIPOC Suppliers Inputs Policies Outputs Customers All departments on campus Financial Affairs Office Journal entries Internal Controls Internal/ External Auditors GAAP – Generally Accepted Accounting Principles Accurate Data Journal entries ready to post to Banner Board of Trustees

Hi-Level Process Map Volume = 35,394 (6 month period) WIP = 283 Average daily touch time = 75m (283 avg. daily batch) Average cycle time =1-2 days Lead Time = 1-3 days Rework = 216 (6 month period) Constraint = Incorrect account # creates need for manual adjustments. Hi-Level Process Map Run and print 2 Banner reports If errors, disapprove, mark errors, and return to student If no errors, approve journal in Banner Student corrects and returns to Tammy Tammy approves in Banner

SWOT Analysis Internal External Strengths Weaknesses Threats Opportunities SWOT Analysis Internal External Attention to detail Banner Internal Controls Skilled staff Vendor expectations (If not paying on time, have late fees) Budgeting Flexibility of Banner software Save money Errors Time Student Labor Lack of standard work (visual management)

Gap Analysis Opportunities and Priorities Input of incorrect data results in time consuming manual adjustment process which creates a bottleneck for posting of journal transactions to Banner. Alleviate constraint by eliminating need for manual adjustments. Implementation of standard work to eliminate waste and reduce errors. Implementation of visual management to reduce errors before entry. Maximize flexibility of Banner system. Account number errors require time consuming manual adjustments.

Current State

Banner Report before “fix”(note errors in far right column)

Cause and Effect Diagram Lack Of Org. Focus Inventory Transportation Motion Waiting Defects Overproduction Undesirable Effect Over-processing Hand off of journal and report page to student for correction Hand off back to Tammy of journal Re-work Students and Tammy doing handoffs with each other Tammy waits for student to correct and return journal to her Lots of errors and re-work Two reports are too much

Intermediate State

Banner Report after “fix”(far right column now blank as all errors were auto corrected by “fix”)

Future State

Examples of Lean Countermeasures Used Visual Mgt. – Create and post instructions beside each student computer. Standard Work – Create for students entering journals and post beside each computer to minimize errors. Error Proofing – 1) Create and post instructions beside each student computer. 2) Create process that automatically corrects certain journals minimizing the need for manual corrections. 3) (Side effect benefit!) Countermeasures used for Journal process are directly transferrable to invoice correcting process, which will cut down on correcting journals that have to be done. Kanban – Create a single report in Argos that is emailed to Tammy at a time scheduled by her. (Future State improvement)

Results Reduction in need for manual journal corrections from 216 to 42! (Per 6 month samples.) This while the volume of journal entries increased from 35,394 to 43,089. Lowering the percentage of journals containing errors from .006% to .0009% providing an RTY of 99.9991%! This translates into a time savings of 89 hours per year!! (Under the “Current State” model this task took approximately 312 hours per year. After applying fix in “Intermediate State” this task is on pace to take 223 hours per year) Discovery that error proofing countermeasure directly transferrable to invoice process! IT countermeasure implemented (within existing software), standard work, and visual management.

Call or email anytime, but send what you have so far “FZRFPDC has made a tremendous impact in the amount of corrections made in General Accounting on a monthly basis.  Since introduced, we have saved hours upon hours in preparing correcting journal entries.  This saved time can now be used by the Senior Accountant and Funds Administrator for more value-added tasks.  In addition, Cheryl Hinkle (Accounts Payable) has reported that with the Accounts Payable invoice standard work, more invoices are being keyed with correct funds and programs than ever before (less keying = less errors).  This is evident in the very few remaining correcting journal entries that are needed each month.  We cannot thank Heather enough for her help to our office!” Tammy Morgeson CPA Assistant Controller Progress Check Call or email anytime, but send what you have so far