2. TECH 50800 Project Bank Card Procurement Process Improve Phase Date:12/12/14 Dave Shoffner

3. Brief Review of Project Charter (Problem and Goal Statement) Problem: The issue or problem is the amount of time required for the purchase of an item via the BC process. The time between identification of a need and the purchase of the item or service and the time spent on preparation of the purchase constitute the issue. The function of BC procurements is done by a person known as a BC Holder. This duty is collateral or secondary from their primary assignment. The impacts or “pain” of the issue are: 1) Consumes time from the stakeholders: Requestors, BC Holders and Approving Officials/Reviewers 2) Lowers morale because the process is time consuming and perceived as arduous 3) Lowers productivity because research is slowed or stopped when waiting for needed items and time is spent on a collateral duty, not primary duties. Goal: Reduce the amount of time from identification of need to purchase and time spent on preparation for items being acquired using the BC process so staff will have more time to work on primary duties and research activities will be delayed less. The time reduction goal is one day fewer from the identification to purchase interval and 5 minutes from the preparation of the purchase. The project is estimated to take 11 weeks.

4. Brief Review of Project Charter (Project Scope) The process being reviewed begins when a researcher identifies a need for an item and ends when the BC holder has a completed PR and may place the order. Within the scope of this process are the steps of definitizing the item to be purchased, finding an appropriate vendor, assignment of funding, obtainment of review approvals, and final approval. Receipt of the item, record of verification, and cost allocation are not within the process being reviewed. There are no funds available to the project and the mandated computer systems will be utilized.

5. Brief Review of Project Charter (Stakeholder List) Principle Stakeholders Champion Requestor Person with need for item to be purchased BC Holder Person who makes the purchase Approving Official Approves the purchase BC Program Analyst Manages the BC Program & Holders FCO Commits Funding for purchase Secondary Stakeholders IT Department Health & Safety Property HR (training)

6. SIPOC SuppliersInputsPROCESSOutputsCustomers RequestorPurchase Request (PR)Receive/Generate PRComplete PRRequestor BC HolderEmail Find Vendor if No RecommendationBC Holder Approving OfficialPhone CallRoute for Approval BC Program Analyst Vendor RecommendationRoute for Reviews FCO IT DepartmentCriteria/GuidelinesRoute for Funding Health & SafetyInformationPlace Order Property Budget HR (training) Vendor

7. Voice of the Customer Analysis (SWOT) – No changes from previous Strengths Auto routing system - select who needs to review and system auto cycles through them Info buttons built into the form Prompts if certain types of purchases are entered Web-Based: easily accessible from remote work locations (work from home) and approving officials in different geo areas Electronic purchase log for BC holders One system for getting approvals Ability to enter own request, not required to send to another person Has all fields necessary for processing requests Integrated well with financial data system Weaknesses Must manually select approving official and reviewers even if usually the same Funding code numbers are not sequential; more difficult to do searchers Pressing back arrow will "lock the PR and it is no longer accessible; must start over the entire process After each order function, cannot move directly to the next, goes back to home screen Some requests come with incomplete info, requiring time to "fill the gaps" (ex: justification for a special piece of equipment) Does not automatically move to an alternate approving official if the one selected is out of the office Opportunities Program allow users to set defaults Feedback from users to webdesigners Auto forward to alternate reviewer when promary is out of office Generate spending reports Live links imbedded in system for mandatory sources, search engines List of most commonly used vendors Tickler reminders at each level if action has not been taken Response goals or timeframes for approving officials/reviewers (ex: 2 days or 24 hours) Threats No mechanism or capacity to do web changes (no contract vehicle, funds, etc.) System may change in the future; less efficient version, not user friendly, no info or built-in prompts

8. Updated CTQ Tree(s) CTQ POV PIV Item Info Request Urgency Thorough Description Green, mandatory, SAM, 508 Market ResearchSource Price Item Info TimelinessApprovalsApprovers Availability (incl. AO) System/Technology PR GenerationItem Info PRC Funding System/Tech Funding codes $ - available for use (commitment)

9. Updated CTQ Tree(s) CTQ POV PIV Green, mandatory, SAM, 508 Market ResearchSource Best Value/Cost Price Time for Research Item Info Request Urgency Thorough Description

10. Updated CTQ Tree(s) CTQ POV PIV Requester Preference Request BC Holder Preference System/Tech One Process Requester Preference PR GenerationBC Holder Preference System/Tech

11. Process Map

12. Process Observation Worksheet Process Obeservation Worksheet Step -->12,3 4,56 7 8 910 Number Date Need Identified Time for Market Research (min) Date (if different than previous) Time to Generate Request (min) Review Time by DD or BC Date (if different than previous) BC Holder Review Time (min)Purchase Code # approvals req'd Date Pre- Approvals Complete Approving Official Review Time (min) Date (if different than previous) FCO Funding Time (min) Date PR Complete Total Time Spent on Processing (min) Elapsed Time (day) 1 2 3 4 5 6 7 8 9 10

13. Checksheet The Process Observation Worksheet is a better way of collecting the data needed because it records times and durations for individual process steps. Since the Checksheet is used for collecting qualitative process output data such as compliance and adherence data, it will not be used.

14. Spaghetti Diagram Process is electronic and does not require movement to different locations to collect parts and assemble. Spaghetti Diagram not being done for the process.

15. Data Collection Total Elapsed Time (days) Mean5.457627 Standard Error0.906603 Median4 Mode1 Standard Deviation6.963754 Sample Variance48.49386 Kurtosis10.76966 Skewness3.018924 Range36 Minimum0 Maximum36 Sum322 Count59 Total Processing Time (min) Mean54.89831 Standard Error4.617876 Median45 Mode45 Standard Deviation35.47058 Sample Variance1258.162 Kurtosis1.721187 Skewness1.495535 Range143 Minimum17 Maximum160 Sum3239 Count59

16. Graphs (Average Processing Time for Individual Steps)

17. Graphs (Average Elapsed Time for Individual Steps)

18. TECH508 Analyze Step Analysis Results: 1.Market Research Time is the largest contributor to Total Processing Time. 2.The FCO Elapsed Time is the largest contributor to Total Elapsed Time. At approximately 4 out of a total elapsed time average of 5.5, it is near 80%.

19. TECH508 Improve/Implement Step 1. Solutions that were considered for reducing Market Research Time: #1: Researcher/Requestor provide thorough information to reduce market research time (use form asking for essentials, suggested sources). #2: Provide links in the BC system to access mandatory sources faster. 2. Solutions that were considered for reducing FCO Elapsed Time: #1: Increase staff. #2: BC System sends reminder email every day. #3: Establish response goals for FCO turn-around time.

20. TECH508 Improve/Implement Step Market Research Time Reduction Solution#1#2#3 Price53 Ease43 Effort52 Total1480 Scale of 1 to 5 with 5 being most attractive/easiest/cheapest. FCO Elapsed Time Reduction Solution#1#2#3 Price134 Ease133 Effort122 Total389 Scale of 1 to 5 with 5 being most attractive/easiest/cheapest. Market Research Time Selection: Solution #1: More thorough info from requestor. FCO Elapsed Time Selection: Solution #3: Establish response goals for action.

21. TECH508 Improve/Implement Step Pilot Implementation Plan to test the solutions: Market Research Time Reduction 1. Develop form with pertinent information derived from BC Holder suggestions. 2. Send to 4 BC Holders to distribute to requestors. FCO Elapsed Time Reduction 1. Discuss with FCO’s and Budget Branch Chiefs to establish a goal turn-around time for action. Begin Pilot in Mid January, 2015 and test until 50 procurements have been performed.

22. TECH508 Control Step 1. Control Plan 1. If the pilot is successful, formalize the solutions. 2. BC Program Analyst will distribute to all BC Holders in the lab organization. 3. Have BC Holders continue to record process information on the Observation Worksheet and submit quarterly. 4. Analyze quarterly data and compare to previous submissions. 5. Investigate any changes for reasons why?

23. TECH508 Control Step 1. Identify the benefits and costs of the project. 1. The costs of the solutions will be minimal for generating the solutions, and for continued maintenance of recording data. 2. If the solutions meet the original estimate of 5 minutes reduction of processing time and one day reduction of elapsed time, approximately $25,000 in soft savings annually will be achieved (labor effort). And research items will be obtained sooner reducing wait times on projects.

24. TECH508 Control Step 1. Plan for diffusing the improvements throughout the organization. 1. The BC Program Analyst distributes to the BC Holders. 2. The BC Program analyst send the solutions to the agency level BC staff for broader organization distribution.

25. TECH508 Conclusions 1. The project team has every expectation the solutions will work. 2. Every BC Holder contacted during the data collection phase was enthusiastic about the potential of reducing time spent on the BC Process and volunteered to be a pilot plan tester.