1. 3-DAY EVENT JUNE 14-16, 2010 1 Grant & Contract Accounting: Unbilled LEAN Mapping

2. Team Players 2 Amy Liu—Acting Project Co-Lead Mary Jo Hershly—Acting Project Co-Lead Kelly Sales Lina Nguyen Nancy Linde Gwen Darden Kari Le Doug Kramer Susan Smith & LuAnn Stokke, Facilitators Mike Martyn, Consultant, Cheerleader and Coach

3. “Team Photo, suitable for framing” 3

4. 4 Event Scope Process Description: GCA is responsible for invoicing sponsors on grant & contract awards. Once award is established, GCA will prepare an automated or manual invoice to meet sponsors’ requirements. Background: billing backlog is ~$15.8M (Dec. 2009); avg. $12M. Target is $2M and we’re out of compliance Goals: eliminate the backlog of unbilled invoices to less than $2M. Vision: review current invoice processing, ID gaps and redundancies, solutions, and develop new process for on-time invoicing. Sponsor: Sue Camber, AVP for Financial Management

5. Event Overview Reviewed Event Scope, Amy Trained in LEAN (Overview), Amy Developed Current-state Map, Lina and Doug Brainstormed “pain points”, Kelly Tied pain points to the Map, Kelly Summarized Opportunities, Kari Envisioned Future State, Gwen Outlined Action Plan/Next Steps, Mary Jo Shared Lessons Learned, Nancy

6. Mapping the Current State

7. Map Close-up 7

8. Summary of the Current State 8 Summary of current state and stats: # of Process Steps: Auto invoicing = 10 Manual invoicing < 17 # of Rework loops: up to 4 Process Times PT (process time): 1 to 16 days WT (wait time): 5 to 139 days TT (touch time): 3 to 6 hours

9. “Pain Points”—on the wall and on the map

10. Summary of Opportunities 10 Reduce Variables in Contracts: 67 days + process time  Partner with OSP  Sponsor requirements/Exceptions Lack of Process Controls  Extension updates in FIN and JDE: $1.2M  Slips through cracks: $20K Highly Concentrated Unbilled: $5.3M  Cost Share, Indirect Cost Adjustments  LSDF, USFS, State of WA

11. 11 Summary of Opportunities (cont.) 11 System Upgrades: reduce 35 hrs PT, 15 days WT FIN/JDE set up at the same time Accommodate online/email invoice submissions: 22% of manual GCA Standards Inconsistencies Data Organization Process Expectations OSP/Campus Departments Escalate communication to get information sooner

12. Future State 12 Reduce # of manual invoices by at least 22% Reduce time by 76% for processing manual invoices Reduce existing unbilled amount ($) by 50%, or $6.5M in the short term; eventual goal is $2M. Also reduces future uncollected/aged

13. Next Steps What next? Keep momentum going Find a space and make it ours Action Plan Who? What? When? What do we need? How are we doing? Check-in (30/60/90-day reviews) Never satisfied

14. Lessons Learned 14 “Doug’s participation (as veteran) and Lily’s input was really helpful. They asked pointed questions.” “This team gained some enthusiasm that might have been lacking before—we might have been bogged down.” ‘The best thing about this is it will really grab leaders’ attention; it will have impact. We have so much support now.” “I see how integrated our processes are, and how dependent invoices are on budget set-up. It’s all so connected…almost everything starts with budget set- up…invoicing…closing…” “I had an ‘a-ha moment’—there’s the possibility of reducing work; e.g., PC lists.”

15. Lessons Learned (continued) 15 “I didn’t realize all that money was actually counted as unbilled.” “We’re not capturing some of the unbilled with the current measures. We might increase as we uncover it, but that’s okay…” “We have the opportunity through the map to show Campus and process partners our process and how we’re all affected.” “Most of the pain and opportunities are towards the front of the process—if we address that it may eliminate much of the work toward the back end.” “There’s more here we can address than we thought.” “The inconsistencies among the teams can be addressed—we can bring consistency to the teams.” “By mapping the invoice process, the possibility of the pain points can be eliminated.” …and many more…

16. Our “Fuel” 16

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