Operations Management in the Public Service 2014 Leading the - PowerPoint PPT Presentation

Operations Management in the Public Service 2014 Leading the Public Service to Higher Productivity

PROBLEM STATEMENT Despite existing enabling legislative environment for continuous service delivery improvement, departments still struggle with the continuous improvement and delivery of quality services to all, for example: ▫ The non-existence of service delivery models putting forward on how departments will address their mandates ▫ The inability in most cases to map services provided to ensure effective and efficient delivery ▫ The lack of standard operating procedures in departments. ▫ The lack of unit costing done in departments. ▫ Outdated Service Charters outlining the standard of services citizens can expect ▫ Poor measurement & management of productivity ▫ Weak institutionalisation of SDIPs Leading the Public Service to Higher Productivity

RESPONSE BEHAVIOURAL CHANGE INTERVENTIONS: BATHO PELE Leading the Public Service to Higher Productivity

TOTAL BENEFIT • Enable departments to deliver quality services to the public/internal stakeholders consistent with demand (quantity, speed) in a simplified , flexible, effective (utilitarian value), efficient (costing) and seamless manner. Leading the Public Service to Higher Productivity

Operations Management Value Chain National Annual MTSF Strategic Plan Development Plan Performance Plan Service Delivery Model Service Delivery Business Improvement Process Plan Management Standard Operations Unit Costing Operating Management Service Procedures Delivery Planning Service Productivity Service Delivery Management Standards Analysis Service Service Charter Delivery Improvement Leading the Public Service to Higher Productivity

Service Delivery Model Leading the Public Service to Higher Productivity

Definition Of A Service Delivery Model • A service delivery model (SDM) is a description of how a department will deliver on the services and products that were identified during the strategic planning process. • A service delivery model should be done annually to assist and support management in determining the most suitable operating model to meet mandated and overall service delivery expectations . Leading the Public Service to Higher Productivity

How the SDM Works (5) Service What are How could we Delivery What should we actually perform Model (Short, we be doing? doing? better? medium, long term) (4) Risks (2) Service & (3) Analysis of (1) Our Mandate and Programmes delivery modes constraints Leading the Public Service to Higher Productivity

Example of the abbreviated SDM FUNCTIONS /ROLES AND CURRENT GENERAL SPECIFIC RESPONSIBI SERVICE MODE OF AGREED MANDATE MANDATE LITIES SERVICES RECIPIENTS DELIVERY ANALYSIS SDM (Document (Relevant (List the functions (List the (List the recipients (Specify how (List the capturing section, you perform, services you of your services – the service is advantage/ mandate) subsections emanating from provide, are they internal or currently disadvantages, capturing the specific emanating from external?) rendered: risks/assumpti mandate) mandate listed in the centralised ons of the B.) functions/roles through Head current mode and Office; of delivery; and responsibilities decentralised specify the listed in C through degree to regional offices; which ICT is outsourced, etc) currently used and how it can be improved) Leading the Public Service to Higher Productivity

Presentation on Business Process Management Leading the Public Service to Higher Productivity

11 Definition of BPM • BPM is the broad collection of activities within a department concerned with the identifying, classifying, documenting, measuring, analysing, improving, integrating and maintaining processes with the ultimate goal of serving the client better through achieving the various departmental strategic goals Leading the Public Service to Higher Productivity

12 Phases of Business Process Management Preparation and Current As Is Determine Implement Maintain and measure Proposed to be activation phase Improvement Approach • Radical • Obtain and secure • Analyse Business • Redesign the • Transform the • Monitor process buy in Strategy • Business Process process process performance Redesign • Change • Define Business • Build the to be • Manage the process • Identify management Architecture process • Business Process improvement • Lay BPM • Identify and Re-engineering opportunities Foundation appoint process • Maintain business owners • Stakeholder • Incremental architecture analysis • Document/ map • TQM the process • Project • Kaizen Management • Establish process • 6 Sigma performance • Lean measures • Suggestion System • Measure process • Work measurement performance and productivity • Analyse process performance • Determine process vision Leading the Public Service to Higher Productivity

Business Process Mapping and Modeling 2014 Leading the Public Service to Higher Productivity

What is a Business Process? • A business process is a set of linked, repetitive business activities, that together – and only together – transform inputs into outputs that are of value to the service beneficiary. Leading the Public Service to Higher Productivity

Levels of BPM • Level 1 – descriptive – simply describes the process flow. • Level 2 – analytical – describes the flow precisely, including normal and exception flows. • Level 3- common executable - describes the process with the necessary attributes to automate the process Leading the Public Service to Higher Productivity

Leading the Public Service to Higher Productivity

Process Scope • A process has a name • A process has a purpose • A process has a start and end • A process has a boundary Leading the Public Service to Higher Productivity

Standard Operating Procedures (SOPs) Leading the Public Service to Higher Productivity

19 Definition of SOP • A SOP is a specific procedure or set of procedures established to be followed in carrying out a given operation or in a given situation to enhance quality through following a standardized work procedure. • SOPs are part of a continuous improvement strategy which should be continuously reviewed and revised as services become more efficient. Leading the Public Service to Higher Productivity

20 Why the SOPS Framework and Methodology and Toolkit • It is intended to assist Departments in developing, implementing and maintaining SOPs. • Every Department needs to prepare a comprehensive set of SOPs to provide structure to important administrative functions. • The toolkit on SOPs will serve as an important guide to assist Departments to improve communication. Leading the Public Service to Higher Productivity

21 Phases of Developing SOPs Phases of Developing SOPs Leading the Public Service to Higher Productivity

22 Step by Step Development Process Step One: Determine Step Two: Appoint a the Objective of the SOP Writer/Group SOP • Objectives should • Development be clearly defined should be overseen by a manager • should be written by individuals knowledgeable with the activity and the organisation’s internal structure Leading the Public Service to Higher Productivity

23 Step by Step Process Development Step Four: Distribute Step Three: Produce and File SOP the SOP • Name the SOP • To be distributed to relevant • Determine scope of stakeholders SOP • Create and • Chart the maintain a master procedure list of SOPs • Review Periodicity • Proper filing and • Authorisation of archival of SOPs SOP Leading the Public Service to Higher Productivity

24 SOP for SCM: Payment of invoices Title of SOP Supply Chain Management (SCM) : Processing of Payments SOP Number: 03/2013 Purpose To provide a minimum standard for processing of payments in SCM Scope Processing of payments Responsibility Supply Chain Clerk, Responsibility/Programme Manager, Financial Clerk, CFO Leading the Public Service to Higher Productivity

25 Procedure: SCM: Payment of invoices 1. Supply 1.1 Receive the invoice Chain 1.2 Invoice routed to Manageme responsibility/programme nt manager for certification and approval 1.3 Register invoice for tracking purposes 1.4 Invoice certified correct and approved 1.5 Compile sundry payment documentation 1.6 Capture invoice on Logis (or relevant system) 1.7 Pre-authorise payments 1.8 Route to Assistant Director, Deputy Director or Director (based on Financial delegations) Leading the Public Service to Higher Productivity

26 Procedure: SCM: Payment of invoices 2. Responsibility 2.1 Check, verify and approve invoice. Manager 2.2 If invoice not correct, engage service provider / supplier 3. Finance 3.1 Payment unit checks compliance If authorised proceed with • payment If not authorised, refer back to • SCM 3.2 Final payment process Leading the Public Service to Higher Productivity