process documentation

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1 Documentation of Process and Controls Jorge Baquedano May 2012

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A preview on how a process documentation as a starting point to implement better practices.

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Page 1: Process Documentation

1

Documentation of Process and Controls

Jorge BaquedanoMay 2012

Page 2: Process Documentation

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Introduction ERP and Business Processes Process Documentation Process

Why do we do it What do we do How do we do it When will we do it Who will be doing it

Wrap up

Page 3: Process Documentation

3

INTERNAL

Finance

HR

Manufacture

EXTERNAL

Planning Supply Chain

Execution Supply Chain

AdministrationSupply Chain

Focusing Info / Supplier

Focused Info / Customer

IN

TEG

RA

TIO

N

Central Functions Integration

Value Generation Functions IntegrationERP

Page 4: Process Documentation

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Front-Desk

Supply Chain

ManufacturingAnd

Logistics

HR

Data Analysis

Planning & Control

ERP

Information Analysis•Decision Support software

(BO) allows the user to analyze the transacion data in order to provide a follow up of the business performance.

Human Reources:•HR Administration•Payroll and Benefits•HR Self Service

Front Office Applications• Sales force automation• Telemarketing and Call

Center

Manufacturing and Logistics:

• Production Planning• Material Management• Manufacturing Orders• Warehouse Management• Transport Management• Project Management• Maintenance• Customer Service

Finance:•Accounts Receivable•Accounts Payable•Fixed Assets•Treasury•Costing

Management

Supply Chain•Advanced Planning

Applications that take into account the restrictions of the procutcion, demand forecast and delivery processes.

Page 5: Process Documentation

Generally the process integration model works as follows:

5

Supplier

Financial Accounting

Administration Accounting

Sales

Inventory

Manufacturing

Purchasing

Customer

Page 6: Process Documentation

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• We need to Guide de Organization into the definition and

documentation of methods and procedues using a diferent

methodology.

– Documentation of the current state of the business and the

exisitng control points.

– Be ready to ensure business continuation in case of a leave or

position change.

– Being ready for any kind of audit or certification with solid

and backed up procedures and control points (IAC, ISO, etc.)

– Identify oportunities in our current methods and procedures

of handling the business (practice and IM)

Page 7: Process Documentation

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• It is required to assess, interpret and classify every

business process of the company. This also allows to

analyze interrelations and links and to notice their

behaviour into the organizational structure

Page 8: Process Documentation

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ProductionProductionPurchasingPurchasingProgramsPrograms

Organization CapabilitiesOrganization Capabilities

IM / ITIM / IT

PlanningPlanning

Market

Market

Su

pp

lier

sS

up

pli

ers

MarketMarket

Accounting and AdministrationAccounting and Administration

Customer Oriented ResultsCustomer Oriented Results

Page 9: Process Documentation

The 6 essential points to ensure failure:

1. Decision of change is guided by fashion2. Forcing the changes to the process3. Start doing changes without a clear idea of the benefits

and the objectives of the project4. Thinking that process change its “only to please corporate” 5. Thinking that process improvement and control points is

another “invasion from Planning and Control” 6. Once starting to do changes going to the previous way of

working

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Page 10: Process Documentation

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The 6 essential points to ensure SUCESS:

1. Start with a clear and integral vision about the objectives of the project. 2. Constantly enforce the goals of the project3. Meassure success based on results in the business 4. Implementation should be based on business processes5. Adopt technology and processes as a facilitator not as a solution 6. Implement best practices and make the system to work FOR the process

Page 11: Process Documentation

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Identification of the current state of the business

Development of a new business

model

Identification of opportunity

areas

Validation Workshops

Phase 1 Phase 2

Documentation of current control

points

Page 12: Process Documentation

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BUSINESS PROCESSES

AND PRACTICES

1

2Current documentation

must be prepared with all the controls to fulfill audit

and certification requirements

Current documentation must be prepared with all the controls to fulfill audit

and certification requirements

Define a better opertaion platfform and administration of the business using the right tools and organization

Define a better opertaion platfform and administration of the business using the right tools and organization

Objective recognition of the current state of

the processes and business practice

within gthe business and organization

structure

Objective recognition of the current state of

the processes and business practice

within gthe business and organization

structure

3

Definition of a new business

model

Mapping and documentation of practices and processes within the business

4Prepare the organization to implement new processes

Prepare the organization to implement new processes

Identification of best practices and information requirements

Phase 1

Phase 2

Identification of lack or excess of controls

Page 13: Process Documentation

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• Detailed work plan

• Team – roles and responsibilities

• Communication and documentation strategy towards the business

• Mapping progress reporting

• Validation and control point identification opportinities reporting

• Conclusions and implications document

• Next Steps document

• Validation workshop assistance

• Using this methodology we will obtain process maps, manuals and current state of the processes and business practices.

• Will assist all the responsible of the areas on the application of the methodology

• Will assist all the responsible of the areas on the analysis

• Will assist all the responsible of the areas into conclusions

• Will assist all the responsible on the areas into the validation workshops (Maps, analysis, conclusions, implications and next steps)

• Agreement about the current state of the business

DELIVERABLES

PRODUCTS

Current State Mapping and Analysys

1Team definition and responsibilities

Training and objectives of a documentation processOrganization Mapping

Process MappingControl Points Mapping

Analysis of the Organization process and

abilities (Business Model)

Current state of the business workshop

Page 14: Process Documentation

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• Control Points in Processes Document

• Proposal of addition or elimination of control points document.

• SAQ Control points document

• Communication and documentation strategy towards the business

• Once we have obtained the maps and the manuals we can identify in a better way the controls that exist

• Assist the reposibles of the project into the application of the methodology

• Assist the reposibles of the project into the analysis

• Assis the responsibles of the project into the definition of conclusions

DELIVERABLES

PRODUCTS

Control Points Identification

2Control Points Identification

Definition of lack or excess of control points

Application of control points

Control Point validation workshop

Page 15: Process Documentation

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• Opportunity areas document

• Best practices proposal document

• New maps documented

• New processes documented

• Technological requirements document

• Identify opportunity areas within the business in terms of processes, practices, abilities and organization

• Develop a model that allows the business, using processes, technological and indicators abilities achieve objectives.

• Validate at a management level the business model proposed and the requirements for this (enrich the functional requirements)

• Define and detail the technology required to support the proposed model (strategic, tactic and operative)

• Identification of the Impact / Benefit of the requirements

• Validate at management team level these requierements

DELIVERABLES

PRODUCTS

Best practice definitions, Information Requierment & Organization Changes

3Development and proposal

of operative practices

Practice validation and enrichment workshop

Development of new process maps and

documentation

Development of Organization Changes

Development of requirements and

indicators

Identification of opportunities

Page 16: Process Documentation

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Definition of the new business model

4Development of work plan and team responsible

Identification of training needs

Task classification and indicators definition

• Work plan definition required to start working on the new tasks

• Define a process to follow up and verification of actions in this phase.

• Define technological requirements (servers, equipments, information ) to support these new processes.

• Follow up to the work plan and audit of the information and processes

PRODUCTS

• Work plan document with activities, times and indicators

• IM requirement documents (technical and organization)

• Work team document and training requirements

• Information management document

DELIVERABLES

Audit, follow up and validation of the information

available

Page 17: Process Documentation

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Validate

Enrich Challenge for improvement

The challenge starts in the management team!

Page 18: Process Documentation

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Project Leader

Finance

Management Team

Initiative Resp

Half Time

Part Time*

IT / IM

Initiative Resp

Commercial

Initiative Resp.

Operations

Initiative Resp

Commercial: AR, Sales

Operations: Purchasing, Production

Finance and Accounting, AP , Audit, HR

* Around 3 days a week

Commercial: AR, Sales

Operations: Purchasing, Production

Finance and Accounting, AP , Audit, HR

* Around 3 days a week

DeputyController

HR ManagerAudit

Assistant

Support team

Page 19: Process Documentation

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