Green Belt Lean Six Sigma Project Report Out Rachel .

Green Belt Lean Six Sigma Project Report OutRachel GriffinDepartment of Youth ServicesSeptember 27, 2018DYS and DRC Finance Shared Services –Procurement Process

Team MembersDepartment of Youth Services Department of Rehabilitation andCorrection Kevin Stockdale, Leadership &David Blackburn, SponsorSponsorHannah Thomas, Co-Facilitator Danny Yates, Process OwnerRegina Lurry, Co-Facilitator Subject Matter Experts- YolandaSteve Hrinko, Process OwnerCooks, Karen Eagen, YvonneDave Kukula, Subject MatterKenley, Yvonne Roberson andExpertSperanca Szana Leslie Tilton – OCSEA repSIMPLER. FASTER. BETTER. LESS COSTLY.lean.ohio.gov

Background - Opportunity As the Ohio Department of Rehabilitation and Correctionand the Ohio Department of Youth Services combinesupport and administrative functions, efficiencies will beincreased, services optimized, and costs reduced. By developing a strong shared services plan, bothagencies can continue to work to strengthen the corefunctions that help adult and youthful offenders changetheir lives, ultimately supporting a safer Ohio. Finance Shared Services included Accounting, Budget,Construction, Grants, Monitoring & Compliance andProcurementSIMPLER. FASTER. BETTER. LESS COSTLY.lean.ohio.gov

Project GoalsMap the current processes and identify both the strengths andareas in need of improvement for each agencyDesign one future state process to serve both agencies withincreased operational efficiencyPlan for the implementation of the new process whilepromoting a cohesive new teamthrough the utilization of change managementSIMPLER. FASTER. BETTER. LESS COSTLY.lean.ohio.gov

SIPOCDYS and DRC Procurement PEOPLE, FUNCTIONS AND SYSTEMSTHAT PROVIDE INPUT INTO THEPROCESSMATERIALS, PROCEDURES ANDINFORMATION REQUIRED FOR THEPROCESSSTEP BY STEP METHOD THATPRODUCES THE OUTPUTSPRODUCTS AND SERVICES THAT AREPRODUCED BY THE PROCESSPEOPLE, FUNCTIONS AND SYSTEMSTHAT ARE DIRECTLY IMPACTED BYTHE OUTPUTSDRC and DYS employeesDRC and DYS PoliciesReceive Request toPurchaseRTP formDRC and DYS EmployeesDASDAS Policies andproceduresOrder to vendorDRC InmatesProduct/ServiceDYS YouthReduced budgetFinance - AccountingVendor billVendorGrants DepartmentBusiness needsDRC InmatesReview for Accuracy andApprovalsBudgetDYS YouthOAKSProcess RTPGrants departmentExcel databaseVendorsCreate and send purchaseorderReceive Product/ServiceClose PurchaseOrder/ContractSIMPLER. FASTER. BETTER. LESS COSTLY.lean.ohio.gov

Current State - DRC PurchasingDeputy DirectorRequestorSourcing SupervisorDRC ProcurementReceive RTP* Preapproval forOIT* Newvendor –supplier ID* ControllingBoardReview forAccuracy andComplianceYesHanddelivered toDeputyDirectorReceiveRequestSign RequestHand deliverto SAOBM orDASYesOBMApproval (1Day)DAS StatePrinter (3-4Days)NoEmail forclarificationReceiveRequestApprove andSign RequestHand deliverto SSupLog RTP inexcelSourcing AnalystApprove PRin OaksSign CC LogDetermineType ofRequestHanddistribute PRtoappropriateSANo/ResolvedCode toProper Area ifnecessaryCredit CardNoCheck forAccuracyEnterRequisitioninto OaksSA ReviewBudget Error9/1130/3/7SA NotifiedBA/Grants/CAM ofBudget ErrorNotificationof ProblemFixed (Email)YesPurchaseGoods orService withCC and LogCheck OAKsto see if POwas createdPrint the POScan PODistribute PO toStakeholders(Supplier/Requester/Others)PO to APWalk through toget Signatures onCC log from SSand Credit CardAdminReceiveReceiver/Packing slipand Forwardto APOaksYesEmail Notifyto Supervisorof PendingApprovalSystemBudget CheckBudgetErrorNoAccounts PayableCredit Card AdminBudget Analyst orGrants or CAMSBudget Error(1-3 days)ReceiveNotificationof BudgetError (Email)Fix BudgetError (Email)Notify SA ofBudget Error(Email)Sign CC LogReceive CCLogProcess CCPurchasesSIMPLER. FASTER. BETTER. LESS COSTLY.Receive POReceivePacking SlipPay Supplierlean.ohio.govClose PO

Current State - DRC ContractsDRC Contract Current StateStartIdentify NeedReviewRequestEmail OOACCChiefDRC1271 &DRC2465Go lity &TimelinesPlan ProjectSelectMethodGet reateSolicitationDocumentGet ClientApprovalLegal ReviewPost to DRC &DAS websitesNotifyCurrent/PotentialSuppliersScreen bidsEvaluate bidsSelectSupplierNotifyAward& NonAwardVerify Supplieris in OAKSDRC ContractConsultMeeting(Client/ProgramArea)Delay 3-5DaysConductAdministrativeReviewCB ApprovalAAPVC (EEO)Certif. ofLiab. Ins (COI)UnresolvedFindingsObtainSignature SupplierObtainSignature LegalObtainSignature OOACCObtainSignature DDObtainSignature –DD forDirectorLog masterFileScan to FYFolderEmail toclientCopy ofContract inPSC file atOOACCOCHC MonthlyMonitoring fornon-civilServiceproviders.If DRCsolicited/DRChandlesDAS/DASSIMPLER. FASTER. BETTER. LESS COSTLY.ClosingFollow FY Cutoffs/Review&VerifyAll Invoicesare processed,Close outpurchaseorderlean.ohio.govEnd

Current State – DYS Purchasing &Contracts (including DAS required steps)RequesterDYS Procurement & Contract Current StateInitial RTPPAPERSupervisorapproves: Under 10,000Follow DASpolicy andprocedureIf Contract Required,send to C.O.Procurement – SeebelowGreater than 10,000Send to C.O.Procurement forreviewC.O. sends back toSite for biddingfollowing DAS policyand procedureC.O. procurementwill cunduct Bidfollowing DAS policyand procdureGreater than 25,000Greater than 50,000Purchase madeby DAS contractOnce completed ifContract requredYes ContractRequred:Send to C.O.ProcurementSend to DASfor Releaseand PermitDASoriginates bidThreeweekDelayProcurementEnters C.B.RequestELECTRONIC1-2 dayDelaySent to otherappproversELECTRONIC1-2 ovesPAPERLegal ance andPlanningELECTRONIC4-6 weekdelayC.O. Procurementcreates contractpackage andprocessesPAPERDepartment HeadApprovesPAPERDAS grants Releaseand Permits.Agency creates Bid,followsprocurement policyand procedureNo ControllingBoard neededNo Contract, creatP.O.Deputy DirectorApprovesPAPERDirector ApprovesPAPER1-2 dayDelay1-2 dayDelay1-2 dayDelay1-2 dayDelay1-2 dayDelay1-2 dayDelay1-2 dayDelay1-2 dayDelayCFOELECTRONIC1-2 dayDelayOBMELECTRONIC1-2 dayDelaySIMPLER. FASTER. BETTER. LESS COSTLY.lean.ohio.gov

Current State – Combined Score CardMeasure#Process Steps135Decision Points33SIMPLER. FASTER. BETTER. LESS COSTLY.lean.ohio.gov

Data Baseline Data limitations for this project DYS does not currently have a system to trackRTPs because they are not required for allpurchases DRC’s tracking method did not provide consistentmeasures for analysis Neither agency has a database to track theirpurchasing data Goal of the project was to define measures andmethods to track dataSIMPLER. FASTER. BETTER. LESS COSTLY.lean.ohio.gov

Lean Tools Used for AnalysisRoot Cause AnalysisSilent Brainstorming &Impact-Control MatrixRequest to Purchase ProcessingSystem doesn’t let you email formsLack of TrainingProcedure doesn’t dictate methodFormState PolicyHand deliver form between peopleOld PolicyDelays/loopbacks proc. of RTPsHigh # of individuals orderingRTPs received by multiple methodsLack of TrainingOwnership of processNo procurement systemSIMPLER. FASTER. BETTER. LESS COSTLY.lean.ohio.gov

Solutions to Eliminate Waste Transition to an electronic receipt of RTP forms – Eliminate hand delivery of RTPs fo

Green Belt Lean Six Sigma Project Report Out Rachel Griffin. Department of Youth Services. September 27, 2018. SIMPLER. FASTER. BETTER. LESS COSTLY. lean.ohio.gov Team Members