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Documentation of Process and Controls
Jorge BaquedanoMay 2012
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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
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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
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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.
Generally the process integration model works as follows:
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Supplier
Financial Accounting
Administration Accounting
Sales
Inventory
Manufacturing
Purchasing
Customer
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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)
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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
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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
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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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
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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
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BUSINESS PROCESSES
AND PRACTICES
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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
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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
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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
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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
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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
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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
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Validate
Enrich Challenge for improvement
The challenge starts in the management team!
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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
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