Business Process Redesign

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Business Process Redesign

• Accounts Payable
• Processing Functions
• Refining Business Processes
• Accountability in Financial Management
• University of Missouri-Kansas City
• Fall 2003

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AP/PO BUSINESS PROCESS REVIEWTeam Members
Project Team Sponsor Nancy Zielke
Project Team Leader Paris Saunders
Project Team Members

• Cyndi Auston
• Cathy Barker
• Tom Green
• Carla Heins
• John Heldstab
• Lynn Hurd
• Juli Leahy

• Suzanne Leamer
• Mary Ann Richey
• Peggie Springer
• Eric Vestal
• Jackie Walter
• Karen Wilkerson
• Carla Wilson

Project Team Facilitator Bonnie Bourne
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Accounts Payable/Purchase Order Business Process
Review
Business Process Redesign.a managerial
approachProcesses, People Technology.
Purpose.to assess the accounts payable processes
from initiation in the department to payment, to
improve quality of service, efficiency, accuracy,
accountability and cost effectiveness for all
stakeholders.
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Accounts Payable/Purchase Order Business Process
Review

• Included review of the following current
  processes
• Non-PO Voucher Process
• Travel Reimbursement Process
• Requisition Process
• Purchasing Card
• Petty Cash

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NON-PO VOUCHERSummary

• Highlights of Recommendations
• Workflow system for Non-PO voucher entry and
  approval
• New vendor request process
• Improved document flow
• Continuous Training

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NON-PO VOUCHER Summary

• Before
• Paper Driven
• Multiple Approval Process
• Separate Vendor Request

• After
• Electronic Driven
• Electronic Workflow
• Streamlined Vendor Request

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TRAVEL REIMBURSEMENTPROCESS

• Highlights of Recommendations
• Show-Me Card
• Automated Reconciliation Process
• Outlook Travel Reimbursement Request Form

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TRAVEL REIMBURSEMENTPROCESS

• Before
• Two Separate Cards
• Several Forms to complete
• Paper Driven Process

• After
• Combined Card
• Streamlined forms
• Electronic Process
• Reduced of Vouchers

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REQUISITION PROCESSSummary

• Highlights of Recommendations
• Hands-On Labs
• Negotiate Annual Maintenance Agreements
• Campus-wide contracts
• Frequent Training
• User-Friendly Training Materials
• New Purchase Policy for items under 5K

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REQUISITION PROCESSSummary

• Before
• Not Friendly for Infrequent User
• Monthly Payments on Maintenance Agreements
  require manual processing
• Various Maintenance Agreement Vendors
• Some users only need for maintenance agreements
  and purchases not accepted on procard

• After
• Guided Training Labs maintenance agreement entry
• Annual Payments on maintenance agreements with
  copy charges on procard
• Consolidated Vendors on campus wide contracts
• Use of Non PO when procard is not accepted on
  products under 5K

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EMERGENCY PURCHASE REIMBURSEMENT Summary

• Highlights of Recommendations
• Eliminate Petty Cash and replace with Emergency
  Purchase Reimbursement Process
• Use Non-PO Voucher to reimburse under 50

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EMERGENCY PURCHASE REIMBURSEMENT Summary

• Before
• Several Departments
• Cash on Hand Risks
• Cost inefficiencies

• After
• Two Departments
• No Cash Risk Issues
• Cost Savings

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PROCARD PROCESSSummary

• Highlights of Recommendations
• Electronic on-demand training
• PaymentNet Software Enhancements
• Improved Reconciliation Process
• Create list of vendors accepting ProCard

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PROCARD PROCESSSummary

• Before
• Slow Reconciliation
• Unnecessary Limits
• Infrequent Training

• After
• Enhanced Reconciliation
• Appropriate Limits
• Updated On-line Training

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Business Process Redesign

Questions?