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

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

5. 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.

6. 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

7. 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

8. 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

9. 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)

10. 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.

12. Current State

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

14. 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

15. Intermediate State

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

17. Future State

18. 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 ed to Tammy at a time scheduled by her. (Future State improvement)

19. 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 %!
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.

20. 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 anytime, but send what you have so far