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Lean Event
Value Stream Analysis of
the Procurement Process
at UTPA
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Stop: Closed
Order
Evaluate
Request
Approval
Receive
Part or
Service
Pay &
Close out
Order
Procurement Services
General Takeaways
The procurement process is already good. This event allowed us to
see the overall process and determine ways to provide even better
service levels
In 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 explicit consideration of the communication and handoffs in the
system. We saw the importance of eliminating handoffs and breaking down
organizational barriers
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8. Human Potential
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9. Scatter
(Inability to focus on
completion of a task)
Day 1/2
CI Training
SIPOC
Boundaries
Voice of the
Customer
Set up the Current
State map
Walk the value
stream and gather
facts
Complete Current
State
Floor Plan Spaghetti
Diagram
Info Exchange Circle
Diagram
Analyze the Current
State map
Time Value Analysis
Brainstorming
Cells and Pull Systems
Inventory strategy
Day 2/3
Dealing with
Monuments
Pacemaker Process
Future State Map
Rapid
Improvement Plan*
Improvement
Metrics
Out brief
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Suppliers
Inputs
Vendors
Process
Outputs
Customers
Need
Goods
Users
Requesters
Request
Services
Departments
Govt /University
Funds
Satisfaction
Vendors
UT Systems
Specs/Reqs
Acceptance
State
Department
Proposals
Documentation
Insurance
Contracts
Compliance
Audits
Technology
Forms
Warranty
Visibility
Procurement Process
Process Steps
Stop: Closed
Order
11
Evaluate
Request
Approval
Receive
Receive
Part
Part or
or
Service
Service
11
Close out
Order
Reconcile
UTPA Procurement
Current State Process
12
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Process
Step
Calculation
Time and
Yield
Estimates
Defect
Analysis
M
Simu onte Ca
rl
lat io
n Mo o
deli n
g
Yields
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Sources of Friction
Lack of Visibility
Lack of Flow
Choosing the Wrong Path / Routing Errors
Training / Insufficient Knowledge
Infrastructure Tools
Current purchasing experience is cumbersome
Organizational silos (MM & Accounts Payable)
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Understanding where the information is, who has it, and the status of the
process
Handoffs
Minimize the in box / out box waits from handing tasks back and forth to
different functional organizations. Maximize the amount of work that can be accomplished
at one time by each group.
Delegate
Trust others to accomplish their jobs, and hold them accountable for
success
Metrics
Better Tools
Improve the ability to flow work, provide priority and visibility and
extract information out of the Oracle Database
Organizational Efficiency
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Improved Flow
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Fewer Errors
More useful operator training
Better Software Tools to do the job
Fewer Organizational Boundaries AP and MM reporting
to same organization streamlines consistency of vision
and message
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Organizational Efficiency
Combined AP and MM groups
Break down organizational boundaries between MM
and AP
1.
2.
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Modeled
Improvements
By pushing sequential
task into parallel and
minimizing delays due to
handoffs, significant
improvements are
possible in the modeled
performance of the
Future State
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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 better
service levels
In 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 explicit consideration of the communication and handoffs in the
system. We saw the importance of eliminating handoffs and breaking down
organizational barriers
24
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Its up to you
If you think that you can, or think that you
cant ...
youre right.
Henry Ford
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