driving operational excellence in concert with audit and operation

8/12/2019 Driving Operational Excellence in Concert With Audit and Operation

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DRIVING OPERATIONAL

EXCELLENCE IN CONCERTWITH AUDIT AND OPERATIONS


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CONTENT

True Identity of Internal Auditor.

Operational Excellence Concept.

Key Drivers of operational Excellence.

Factors Affecting Operational Excellence.

Internal Audit Role in Operational

Excellence. Recommendation & Conclusion


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What is the true identity of the Internal Auditor?

A DINOSAUR, bestridingthe organization like a

colossus? If this is theperception, audit must act

quickly; otherwise you

may become extinct, justlike the dinosaur.

A SNAKE - in the grass,waiting to trap the unwary

and unleash venom?Should we see the auditor

as such? Should theauditor be feared or

respected?
http://yahooligans.yahoo.com/content/animals/photo/4442.html


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What is the true identity of the Internal

Auditor?

A WATCHDOG Reliably &faithfully guarding the

business as a safety andcomfort provider? Is the

watchdog identity stillrelevant in contemporary

times?

A BEE - Buzzing from flower

to flower not staying long ina place; ready to sting inthe tail if things get really

tough? If this is the identity,

is he perching on the rightflowers at the right time?
http://yahooligans.yahoo.com/content/animals/photo/3742.htmlhttp://yahooligans.yahoo.com/content/animals/photo/9800.html


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What is the true identity of the Internal

Auditor?

PRAYING MANTIS. This insect

looks reverent and calm (as if it ispraying!) but if a tasty morsel

passes it, it is ready to strike and

become a preying mantis. Is

internal audit outwardly innocent

but a menace in disguise?

DOLPHIN? Supper-intelligent,

sleek, fast and loved byeveryone. It would be very good

to be thought of as a dolphin. This

is very good goal for internal

auditor, although I am not sure if

you will ever be loved by

everyone.


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A LION - Strong, agile,

feared and can be veryfierce and ruthless? Is thelion identity compatible

with cooperating forbusiness growth?

EAGLE - flies majestically across

its domain, completely in control,

able to watch over its

surrounding and take everything

in; and when necessary canswoop down and deal with issues

decisively. I believe this shouldbe the desirable identity!

What is the true identity of the InternalAuditor?


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MEANING OF OPERATIONAL

EXCELLENCE CONCEPT

Operational excellence can be definedas a philosophy of leadership, teamwork

and problem-solving resulting in conti-nuous improvement throughout the or-ganization by focusing on the needs ofthe customers, empowering employees

and optimizing existing activities in theprocesses.


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MEANING OF OPERATIONAL

EXCELLENCE CONCEPT

It addresses the way the business is setup and how the work is executed on aday-to-day basis with the optimal

objective of achieving cost efficiency,seamless/gratifying and highly ratedcustomer satisfaction that attracts

repeated patronage. This ultimatelyenhances efficiency and profitability.


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KEY WORDS MEANING IN

OPERATIONAL EXCELLENCE CONCEPT

Leadership Lead By Example. Passion.

Be Organized. Delegate.

Take Ownership and Responsibility

Communicate Effectively.

Be Brave and Honest.

Great Listener.

Know Your People.

Be a Follower


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Teamwork

Listening Questioning

Persuading

Respecting

Helping

Sharing Participating


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Problem-solving Define the task clearly. Set priorities.

Develop an appropriate strategy. Use experience from similar problems.

Set targets.

Develop an action plan.

Get started.

Monitor your performance against targets andindicators.

Evaluate your performance.


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Continuous improvement Increase Flexibility, Reduce Setup Times and Improve

Product Flow.

Boost Capacity and Improve Quality by IncreasingYour Asset's Life Expectancy.

Stop Searching for the Wrong Problem - Learn to SeeWhere Value Truly Is!

Slash Lead Times and Increase Productivity by

Improving Product Flow


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Continuous improvement (CONTD)

Accelerate Product & Service Flow. Achieve andSustain Clean, Safe and Organized Workplaces.

Improve Your Cash Flow, Throughput andCompetitive Position.

Involve Your Workforce in the Pursuit of EliminatingWastes!


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Needs of the customers

Friendliness.

Understanding and empathy.

Fairness.

Control.

Options and alternatives. Information.


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Empowering employees by:

Workers feel they are given the opportunity to

do what they do best every day. They believe their opinion counts.

They sense their fellow workers are committed toquality.

Theyve made a direct connection between theirwork and the companys mission.


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Optimizing existing activities in theprocesses (3Es):

Efficiency.

Effectiveness.

Economy.


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KEY DRIVERS OF OPERATIONAL

EXCELLENCE.

Having the right personnel in place:Dependability, Punctuality, Initiative,Positive attitude towards the job, Ability toget along well with others, Flexibility,

Motivation, Organization and; Ability toperform assigned duties.

Having and ensuring compliance with

service level agreement:-Complying with terms and condition of

contracts

-Ensuring quality and timely delivery of service


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EXCELLENCE.

A state of perfection ensuring thatthere are no errors, rejects or irregularities.

Ensuring compliance with rules, policies,procedures and practices.

Ensuring compliance with regulatory

provisions.


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EXCELLENCE

Timely execution of transactions in aflawless manner at a minimum cost withthe requisite resources.

Having a sense of ownership and takingresponsibility of keeping the organizationgoing.

Being a team player.

Having adequate resources and bothmaterials to work with.


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Automation Of Agreed Process:

-Employees can easily retrieve information from

various databases for decision support.-Various internal groups can easily share data.

-All product-related information (price, productdescription, and catalog) is available online.

-Customers can customize their orders online withoutphone or face-to-face interactions.

-A comprehensive FAQ section is available online.


EXCELLENCE.


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Zero tolerance for Account Dormancy.

Strategic Reduction In Operating Costs.

< 0 % Fraud/Operational Losses.

Supplier selection criteria are well

documented.

Supplier evaluation metrics are well defined

and applied. Supplier quality monitoring process is well

defined and applied.


EXCELLENCE.


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Zero Loss of Key Accounts Due ToService Failure.

99% System Uptime , Integra, Sage andmail.

Zero Errors On Transaction Processing.

Zero Regulatory Infraction


EXCELLENCE.


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NEGATIVE FACTORS AFFECTING

OPERATIONAL EXCELLENCE

Where team work as defined by operationalexcellence is lacking.

Adoption of unapproved processes in effectingtransactions with little regard to services and impacton the company.

Wrong notions of operation units about who anauditor is .which results to infractions of companypolicies and that of regulatory and which in turnaffects the company.


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NEGATIVE FACTORS AFFECTING

OPERATIONAL EXCELLENCE

Audit and Control checks are largelyreactive instead of proactive especially onfraud detection, prevention and control.

Lack of self-audit and peer review ofactivities.

Limited information on industry developmentas it relates to fraud for proactivemanagement.


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THE ROLE OF AUDIT AND CONTROL

IN TERMS OF OPERATIONAL

EXCELLENCE OUR PERCEPTION

The audit and control unit play amajor role in operationalefficiency/excellence.


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Reduction of the business risk, error andvulnerabilities from daily operation.

Ensuring zero regulatory infractions.

Ensuring compliance with the Group policies.

Identification of potential risk areas and pursueregulation.


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Ensuring zero or minimal loss throughfraud.

Proactive education and audit aimed atfraud prevention.

Review for resource adequacy

Regular value for money audit


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Regular product and policy review forsuitability and acceptability.

Timely review of transaction media withprompt reporting of exceptions andirregularities.

Policy pronouncement enlightenment.


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RECOMMENDATIONS TO BOLSTER SYNERGY

BETWEEN OPERATIONS AND; CONTROL &

AUDIT TOWARDS EFFECTIVE OPERATIONAL

EXCELLENCE

There is need for re-orientation of theaudit/control staff for value addition auditinstead of mere investigative and after-the-factaudit as it is presently the case.

Emphasis system audit more than manualcontrol functions.

Control should always look for root causes andpreventive measures in exceptions resolution.


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BETWEEN OPERATIONS AND; CONTROL &

AUDIT TOWARDS EFFECTIVE OPERATIONAL

EXCELLENCE

Operations and Audit and Control (field

officers) should once in a while come

together to seminar on issues like this

(operational Excellence) for betterment ofthe organization.

Automated Controls should be explored

more for fraud prevention.


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BETWEEN OPS AND CONTROL & AUDIT

TOWARDS EFFECTIVE OPERATIONAL

EXCELLENCE

Regular review of the company extant operationalpolicies for possible update as the need arises.

There should be continuous auditing and monitoringof processes, transactions and controls toautomatically track and audit system configurationchanges, segregation of duties conflicts, and over-

ride across key processes and controls.

Strengthening the manpower in operations andcontrol.


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There is need more than ever before for VigeoHoldings as a Group as she aspires to achieveleadership in various industry lines, to ensure that itsoperations suite is duly fortified/equipped to deliver

the much seamless operational excellence.

The Operations and Audit & Risk Units must be seento be working towards achievement of a common

goal which supports operational excellence.

CONCLUSION


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THANK YOU

driving operational excellence in concert with audit and operation

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