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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 concepts that are also discussed in relation to
the company’s process improvement.
Goals of the OrganizationThe goal of a Total Quality Management organization is to strive for success and
excellence in everything they do beginning with the strategic plan. “Companies clearly have a competitive
advantage when they can develop an effective strategic plan” (Strategic Planning for Business Excellence, 2002).
Total Quality Management (TQM) consists of an integrated approach to define and document principles, processes,
production, and the best practices that provide the organizational framework of excellence. Corporate process
improvement is a major factor towards improved efficiency and customer service, and this review looks at the
possibility of improving a financial process.
Identified ProcessOne of the many financial processes that has the potential to cause setbacks in system downloads
is the monthly accrual process. The accrual process consists of identifying, approving, and posting in a company’s
expenditures which must be accrued at fiscal month-end in order to recognize the expenditures in the appropriate
accounting period. This process applies to all base operations, maintenance, administration, capital, and minor fixed
assets. 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
expectations then all customers will be affected by inadequate data. And the ill effect of inadequate data is poor
corporate decision-making. The most efficient means of ensuring that the process is properly analyzed is to use the
best quality management tool for the task.
Quality Management ToolProcess mapping and analysis is one of the best techniques to use for the complex process
of accruals. This technique documents activities “in a detailed, compact, and graphic form in order to promote
understanding and improvements” (Value-Driven Operations Management, 2005). The outcome from process
mapping is a schematic representation of the process flow which highlights interdependencies, sequence of tasks,
and lists the accountable role responsible for performance of task. This process assists managers in visualizing gaps
and breaks in links between process tasks in a common language to describe the steps.
Value of Process ImprovementA value assessment determines whether the outcome enhances or deters from the
efficiency required. The entire process is critically reviewed to determine the level of improvement realized. There
are cases where processes are necessary but do not provide value and others that are not necessary yet do provide
value. These situations require individual review and factoring into the final decision.
In conclusion, TQM provides an organization with a vehicle to achieve excellence, providing that quality is
established in the company’s strategic plan. This paper has provided substantial information in respect to process
improvement, and quality tools used to ensure quality processes are achieved. A process improvement typically
needs to supply value to the organization or process users to be useful. Total management and employee support is
paramount to the success of process improvement. The Seguro company simulation was reviewed for relevance to
the OPG process improvement and again the concept of management and employee support was critical for TQM
success. When TQM becomes a part of the company’s strategy where managers and employees are fully committed,
then corporate excellence will follow.
ReferencesBurrill, C. W. & Ledolter, J. (1999). Achieving Quality through Continual Improvement.
Site retrieved March 12, 2007 from Resource Mgt449, University of
Phoenix,https://ecampus.phoenix.edu/secure/resource/resource.aspLondon, C. (2002). Strategic Planning for
Business Excellence. Site retrieved March 12,2007 from University of Phoenix website
http://www.proquest.umi.com/pqdweb?Melnyk, S.A. (2005). Value-Driven Operations Management: An Integrated
ModularApproach. McGraw-Hill/Irwin. Site retrieved March 12, 2007 from ResourceMgt449 at University of
Phoenix,https://ecampus.phoenix.edu/secure/resource/resource.asp(2006). OPG: Ontario Power Generation. About
OPG. Site retrieved March 12, 2007from http://www.opg.com/about/vision.asp