Green Belt Lean Six Sigma Project Report Out Rachel Griffin Department of Youth Services September 27, 2018 DYS and DRC Finance Shared Services – Procurement Process
Team Members Department of Youth Services Department of Rehabilitation and Correction Kevin Stockdale, Leadership & David Blackburn, Sponsor Sponsor Hannah Thomas, Co-Facilitator Danny Yates, Process Owner Regina Lurry, Co-Facilitator Subject Matter Experts- Yolanda Steve Hrinko, Process Owner Cooks, Karen Eagen, Yvonne Dave Kukula, Subject Matter Kenley, Yvonne Roberson and Expert Speranca Szana Leslie Tilton – OCSEA rep SIMPLER. FASTER. BETTER. LESS COSTLY. lean.ohio.gov
Background - Opportunity As the Ohio Department of Rehabilitation and Correction and the Ohio Department of Youth Services combine support and administrative functions, efficiencies will be increased, services optimized, and costs reduced. By developing a strong shared services plan, both agencies can continue to work to strengthen the core functions that help adult and youthful offenders change their lives, ultimately supporting a safer Ohio. Finance Shared Services included Accounting, Budget, Construction, Grants, Monitoring & Compliance and Procurement SIMPLER. FASTER. BETTER. LESS COSTLY. lean.ohio.gov
Project Goals Map the current processes and identify both the strengths and areas in need of improvement for each agency Design one future state process to serve both agencies with increased operational efficiency Plan for the implementation of the new process while promoting a cohesive new team through the utilization of change management SIMPLER. FASTER. BETTER. LESS COSTLY. lean.ohio.gov
SIPOC DYS a D S and D DRC Pr C Procurement Pr Process S I P O C Supplie liers Inputs Proc oces ess Outputs Ou Custom omer ers PEOPLE, FUNCTIONS AND SYSTEMS MATERIALS, PROCEDURES AND PEOPLE, FUNCTIONS AND SYSTEMS STEP BY STEP METHOD THAT PRODUCTS AND SERVICES THAT ARE THAT PROVIDE INPUT INTO THE INFORMATION REQUIRED FOR THE THAT ARE DIRECTLY IMPACTED BY PRODUCES THE OUTPUTS PRODUCED BY THE PROCESS PROCESS PROCESS THE OUTPUTS Receive Request to DRC and DYS employees DRC and DYS Policies RTP form DRC and DYS Employees Purchase DAS DAS Policies and Order to vendor DRC Inmates procedures Grants Department Product/Service DYS Youth Review for Accuracy and Business needs Approvals DRC Inmates Reduced budget Finance - Accounting Budget DYS Youth Vendor bill Vendor OAKS Grants department Process RTP Excel database Vendors Create and send purchase order Receive Product/Service Close Purchase Order/Contract SIMPLER. FASTER. BETTER. LESS COSTLY. lean.ohio.gov
Current State - DRC Purchasing DRC Procurement Sourcing Supervisor Hand Review for delivered to OBM DAS State Accuracy and Yes Receive Hand deliver Approve PR OBM or Deputy Receive RTP Sign Request Sign CC Log Yes Approval (1 Printer (3-4 Compliance Request to SA in Oaks DAS Director Day) Days) * Pre- approval for OIT No * New vendor – supplier ID * Controlling Requestor Email for Board clarification Deputy Director Receive Approve and Hand deliver Request Sign Request to SSup No/Resolved Hand 9/1130/ SA Notified Determine distribute PR Code to Enter Log RTP in Check for 3/7 SA Review BA/Grants/ Type of to Proper Area if Credit Card No Requisition excel Accuracy Budget Error CAM of Request appropriate necessary into Oaks Distribute PO to Receive Budget Error Notification Check OAKs SA Stakeholders Receiver/ of Problem to see if PO Print the PO Scan PO PO to AP (Supplier/Requester/ Sourcing Analyst Yes Packing slip Fixed (Email) was created Others) and Forward to AP Walk through to Purchase get Signatures on Goods or CC log from SS Service with and Credit Card CC and Log Admin Yes Oaks Email Notify to Supervisor System Budget No of Pending Budget Check Error Approval Budget Error (1-3 days) Budget Analyst or Grants or CAMS Receive Notify SA of Notification Fix Budget Budget Error of Budget Error (Email) (Email) Error (Email) Credit Card Admin Sign CC Log Accounts Payable Receive CC Process CC Receive Receive PO Pay Supplier Close PO Log Purchases Packing Slip SIMPLER. FASTER. BETTER. LESS COSTLY. lean.ohio.gov
Current State - DRC Contracts DRC Contract Current State Email OOACC Review Chief Go to Start Identify Need Request DRC1271 & Planning DRC2465 Consult Define Notify Meeting Develop Create Notify Collect Requirement, Select Get Pre- Develop Get Client Post to DRC & Current/ Select Verify Supplier (Client/ Plan Project Evaluation Solicitation Legal Review Screen bids Evaluate bids Award& Non- Requirements Quality & Method Approvals Scope Approval DAS websites Potential Supplier is in OAKS Program Criteria Document Award Timelines Suppliers Area) DRC Contract Delay 3-5 Days Obtain Copy of Conduct Obtain Obtain Obtain Obtain Email to Certif. of Unresolved Signature – Log master Scan to FY Contract in Administrative CB Approval AAPVC (EEO) Signature - Signature - Signature - Signature - client Liab. Ins (COI) Findings DD for File Folder PSC file at Review Supplier Legal OOACC DD Director OOACC OCHC Monthly Follow FY Cut- Monitoring for offs/ non-civil Review&Verify Service All Invoices providers. Closing End are processed, If DRC Close out solicited/DRC purchase handles order DAS/DAS SIMPLER. FASTER. BETTER. LESS COSTLY. lean.ohio.gov
Current State – DYS Purchasing & Contracts (including DAS required steps) DYS Procurement & Contract Current State Requester Initial RTP PAPER If Contract Required, Supervisor Follow DAS send to C.O. approves: Under policy and Procurement – See $10,000 procedure below C.O. sends back to Greater than Send to C.O. Site for bidding Once completed if No Contract, creat $10,000 Procurement for following DAS policy Contract requred P.O. review and procedure C.O. procurement Yes Contract will cunduct Bid Requred: following DAS policy C.O. Procurement and procdure 1-2 day creates contract Delay package and Send to C.O. processes Procurement PAPER Greater than 1-2 day $25,000 Send to DAS Procurement DAS 4-6 week Delay for Release Approves originates bid delay and Permit PAPER 1-2 day Department Head Delay Approves DAS grants Release PAPER and Permits. Agency creates Bid, 1-2 day Greater than Legal Approves follows Delay $50,000 PAPER procurement policy and procedure Deputy Director 1-2 day Approves Delay Three PAPER week Controlling Director Approves 1-2 day Delay No Controlling Board PAPER Purchase made Delay Board needed by DAS contract Required ELECTRONIC Procurement 1-2 day Enters C.B. Delay Request ELECTRONIC Sent to other 1-2 day appprovers Delay ELECTRONIC Finance and 1-2 day Planning Delay ELECTRONIC Legislative 1-2 day Liason Delay ELECTRONIC 1-2 day CFO Delay ELECTRONIC OBM 1-2 day Delay ELECTRONIC SIMPLER. FASTER. BETTER. LESS COSTLY. lean.ohio.gov
Current State – Combined Score Card Measure # Process Steps 135 Decision Points 33 SIMPLER. FASTER. BETTER. LESS COSTLY. lean.ohio.gov
Data Baseline • Data limitations for this project • DYS does not currently have a system to track RTPs because they are not required for all purchases • DRC’s tracking method did not provide consistent measures for analysis • Neither agency has a database to track their purchasing data • Goal of the project was to define measures and methods to track data SIMPLER. FASTER. BETTER. LESS COSTLY. lean.ohio.gov
Lean Tools Used for Analysis Silent Brainstorming & Root Cause Analysis Impact-Control Matrix Reque uest t to P Pur urchase P Processing ng System doe oesn’t l let y you ou e email for orms Lack of T Training Procedure d doesn’t d t dicta tate te m meth thod Form rm Sta tate te P Policy Hand d deliver f for orm b between p people Old ld P Poli licy Delays/loopbacks proc. of RTPs High gh # # of i individuals ls o ordering RTPs r received by by m mult ltiple le m methods Lack of T Training Ownershi ship of p process No p o proc ocurement system SIMPLER. FASTER. BETTER. LESS COSTLY. lean.ohio.gov
Solutions to Eliminate Waste • Transition to an electronic receipt of RTP forms – • Eliminate hand delivery of RTPs for approvals – Waiting • Deputy Director no longer required to approve all RTPs – Waiting • Move budget approval to beginning of process to avoid budget error delays – Waiting • New simplified all inclusive RTP form – Waiting SIMPLER. FASTER. BETTER. LESS COSTLY. lean.ohio.gov
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