Lean Champion: Chris Ruszel, NMC Business Office

Team Members

Sponsor - Vicki Cook, VP of Finance

Value Stream Manager - Chris Ruszel, Assistant Controller

Team Members – Peggy Shinn, Gail Reeves, Michelle Autry, Sara Budzik, and Bonnie

Shumaker

Project Purpose

To increase timeliness of travel reimbursements to employees and students

To eliminate wasted time from rework due to errors and missing information

Project CharterProject:

NMC Travel Reimbursement ProcessInitiation

Date:

November 01, 2014

Sponsor/ Leadership Panel:

Vicki Cook, Vice President of Finance

Value Stream Manager (Person most

directly responsible for the project area):

Chris Ruszel, Assistant Controller

Team Members:

Chris Ruszel, Peggy Shinn, Gail Reeves, Michelle Autry, Sara Budzik, and Bonnie Shumaker

Purpose of Project:

To increase timeliness of travel reimbursements to students and employees. To eliminate wasted

time from rework due to errors and missing information.

Metrics and Targets (What metrics do

you anticipate changing after the project,

what are your goal numbers?):

Fewer errors and time spent by business office staff and travelers on completing forms and follow-

up questions. Reduce wait time for reimbursement.

Project Scope (Beginning and end

points of the project):

From time traveler completes professional development request and/or PO to final check/direct

deposit payment to employee and closing of PO.

Parameters (Processes that must be

followed, constraints, etc.):

Meet IRS travel allowable costs guidelines

Little to no budget for software, technology, equipment, or additional staff

Deliverables (Tangible outputs of the

project):

Current state value map

Future state value map

Implementation plan

Standardized work plan

Updated/revised travel policy and procedures

Timeline, including target

completion date:

Current state map – 12/9/2014, 5S Project 1/13/15, Standardized work plan 2/10/15, Future state map

3/17/2015, implementation of new processes by 5/1/2015

Updates (How often will leadership be

updated?):

Monthly updates through August 2015

Current Value Stream Map

Travel Metrics 3-month sample of travel reimbursements yielded:

Average time for traveler to turn in voucher = 12.64 days

Average time for Business Office to review = 4.89 days

Average time from review to payment = 1.64 days

Total average time from travel to payment = 19.17 days

47% of travel reimbursements contained errors

Mapping Observations

Procedures – outdated and unclear

Forms – too many, cumbersome, do not address all possible travel expenses, multiple authorizations needed, confusing

Request for reimbursement– requests for unallowable expenses submitted, wrong per diems, no authorizations, no maps or agendas provided, using credit cards for meals, large time lapse from date of travel to date received in Business Office

Mapping Observations

Review by Business Office – only 1 person doing this task on off payroll weeks, progress slows depending on # of errors on request forms, looking up per diems and maps to complete travel request required

Special considerations – CIE requires PO’s, student travel advances, international exchange rates, exceptions for certain areas

Areas of Focus

Standard work and job aids for Business office staff to review reimbursements

Review CIE process of using PO’s

Provide one place for travelers to find fillable forms

Reduce number of forms and make error proof

Clarify and communicate travel polices

5S Project-Kick Off MeetingKick off Meeting Agenda – NMC Business Office 5s Improvement Project

Meeting Objective: Clarify project scope and identify needed resources. Decide on timeline and next steps.Who: Team Members: Chris Ruszel, Dori Creighton, Alan Holcombe, and Shayrrl McCreadyWhen: Monday, January 5, 2015 2-3 PMWhere: Business Office work table

Agenda1. Discuss 5S principles

2. Clarify project purpose and scopea) Do walk through and take picturesb) Identify red tag area for holding

3. Decide what resources & supplies are needed for project

4. Outline next steps, assignments, and due dates

5. Identify future improvement projects

5S Project – Current State

Supply room is a distance from workroom, causing wasted time from going back and forth for supplies

Supply room overstocked in some items and understocked in other items

Unused space above counter in workroom which could be used for supplies

Many old, unused supplies and decorations taking up space

Boxes being stored in cubicle

5s Project- Before & After

5S Project – Before & After

5S Project Before & After

5S Project Before & After