Process Improvement Flowchart

Process Improvement Flowchart

As-Is Process Flowchart Evaluation

Procurement Process

Process Efficacy Evaluation

The procurement process given above is sound for my current organization to use in purchasing its needs in terms of goods and services. The process is easy to follow and can be adopted to purchase any commodity desired by an organization. However, The process can be improved by including additional steps that can make the procurement process more efficient. Further, adding new steps can make the process sounder for anyone to follow, irrespective of whether they have a background in procurement. The process lacks how prices to be used can be determined, which is an important aspect of purchasing anything. Additionally, it is important to identify the needs of a company to submit a purchase request before selecting suppliers. Finally, it should include keeping records as the last step because they may be required for reference purposes.

Process Improvement Flowchart

Process Improvement Approach

The process can be improved through analysis of its current status, identifying gaps, and addressing them through breaching them. Thus, people who already use this process to undertake various purchase processes can be asked how the process can be made better. Their feedback will play an important part in modifying the current procurement process and making it better.

Metrics definition and current process measurement

A process metric refers to a measurable item that offers insight into the performance and effectiveness of a process. According to Hossain et al. (2021), process metrics can include things such as flow time, flow rate, cost of flow, and inventory. The current process can be measured in terms of the cost incurred while conducting the process. Notably, improving the process can potentially reduce the cost for the company because the inclusion of the negotiation stage will ensure the company purchases items at favorable prices.

Improved Process

Summary

The current process is composed of eight steps. Three additional steps are included to improve the step. At the current state, while intending to undertake a purchase order, a company will first establish the products and services that are required in the organization. Second, the items required will be submitted to the procurement department to be included in the purchase request. Notably, this new step will ensure only requirements are included in the purchase order. Third, the suppliers will be evaluated regarding their payment terms and track records before selecting the best one to engage in a purchase contract. Fourth, the selected supplier will be engaged in price and terms negotiations. Notably, this additional step will improve the process and help the company reduce the gross amount of money paid to the supplier because competitive prices will be used. Fifth, the purchase order will be created at the agreed prices and forwarded to the supplier. Sixth, the goods ordered in the purchase order will be received and subjected to inspection to ensure they are in a good state as ordered. Seventh, the invoice for payment will be approved to release the money to the supplier for the deliveries made. Finally, an additional step of keeping records for reference purposes is made.

The results of process evaluation entail refining the process to enhance its effectiveness. The process changed from five steps to eight steps. However, this does not mean that the process is perfect and could not have weaknesses. Weaknesses will be identified in the utilization of the process, and further improvements can be made. The process baselining and process comparisons technique will be used to improve. Notably, this technique will entail the creation of a baseline, classifying the baseline, making comparisons, and determining baseline differences (Plantinga et al., 2020). Another technique that will be considered entails flowcharting. Notably, this technique allows a detailed breakdown of processes to events and activities, including establishing logical relationships. Based on the evaluation using these techniques, the future process will perform excellently for the procurement purposes of the company. Implementing the improvement process will only require management approval, and future purchases by the company will use the improved process.

References

Hossain, S. S., Ahmed, P., & Arafat, Y. (2021). Software process metrics in agile software development: A systematic mapping study. In Computational Science and Its Applications – ICCSA 2021 (pp. 15–26). Springer, Cham. https://doi.org/10.1007/978-3-030-87013-3_2

Plantinga, H., Voordijk, H., & Dorée, A. (2020). Clarifying strategic alignment in the public procurement process. International Journal of Public Sector Management, 33(6/7), 791–807. https://doi.org/10.1108/ijpsm-10-2019-0245

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Process Improvement Flowchart

The purpose of this assignment is to learn how to create a flowchart and improve a process and summarize the results. You will create a process to improve flowcharts.

Process Improvement Flowchart

Complete the Process Improvement Flowchart.

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