Total Quality management
Corporate process improvement is a major factor towards improved efficiency and customer service. An `As-Is' flow chart of the accrual process is supplied, the relationship to the organization's strategic plan is discussed, the internal and external customers are identified, while potential impact on these customers is noted. The most appropriate quality management tool is used to collect and present data for process improvement changes. Even more, improvement opportunities are identified, and the level of value to the organization is assessed. The simulation `Quality Management and Productivity' introduces a number of quality ...view middle of the document...
If the accruals are not processed in a timely manner, then significant variances in various project and financial reports are likely.
A reason for untimely accruals may be the lack of a defined process explaining the system requirements and timelines available for users to process necessary accruals. Business process modeling is used to document the existing process in place to identify the current workflow or tasks involved in the work procedure and are best visualized.
The information-gathering phase follows the process identification. Information is gathered from the individuals that perform the work and a process profile worksheet is developed. This worksheet identifies the process owners, because it is their buy-in that is paramount to the success of any process change, any trigger events such as inputs and outflows, key controls, and measures of success.
The overall process can be described by way of a flowchart for greater visual appeal and ease of understanding accruals. The process starts with a need for monthly accrual at the fiscal month-end, and ends with the required accruals being posted correctly (Achieving Quality through Continual Improvement, 1999). The as-is process flowchart defines what documents, forms, emails, reports, timeframes, or approvals are involved in the process, where the work is being done and by who, where much of the process time exists, where decisions are being made, and where the controls are in place.
Relationship to Organization's Strategic PlanThe organization's strategic plan covers the entire organization to help everyone move in the same direction of the goal. Some sections of the corporation may need to fine-tune these directions in order for them to be more relevant to the business unit, but overall the company is working towards the same goals. Alignment of the organizational processes that encompass a variety of departments within the company is an effective way towards goal achievement, which will be achieved by reviewing the accrual process.
Internal and External Customer ImpactHigh-performance throughout the entire organization is achieved through excellence. All processes performed in an organization have internal or external customers as the result. If any one process fails to deliver high-performance results, a customer will surely be impacted.
There are internal and external customers that rely on the financial information provided by the corporation. The internal customers consist of employees in the financial analyst field, supply chain, project managers, and the controllers. They all rely on the accuracy and timeliness of financial information. The external customers are the shareholders, all customers that have an interest in the company's product, financial institutions, and the government regulators (OPG: Ontario Power Generation, 2006). If the accrual process does not meet GAAP and corporate...