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Project Charter

dennis-leach
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Project Charter

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  1. Project Title : Improvement of budget monitoring process of janitorial services, electrical equipment and electricty Champion : Larry S. H. SimTeam Leader : Rissa SamsonAsst. Team Leader: Renee Diminsil Members :Alice Lim, France FelizardoContributing Members: Oscar Roman, Andy Sta. Ana

  2. DEFINE Project Charter BUSINESS CASE: The building maintenance-related budget comprises to about 39% of total administrative expense budget of OAS. It is very important that these accounts are closely monitored and the budget monitoring system is efficient. An effective system may result to a more accurate data which will greatly help in the planning and optimization of use of budget. An initial comparison of the actual expenses from the General Ledger of the Oracle System (Official Record) and the Utilization Report of the section show an average discrepancy of 18% in 2004 and 20% in 2005. This project shall focus on budget monitoring process of the following administrative expense accounts: Electricity, Electrical Equipment and Janitorial Services.

  3. 2005 Actual Expenses of General Ledger vs. Monitoring/Utilization Report

  4. Pareto Chart of Discrepancies 2005 Monitoring/Utilization Report

  5. 2004 Actual Expenses of General Ledger vs. Monitoring/Utilization Report

  6. Pareto Chart of Discrepancies of 2004 Monitoring/Utilization Report

  7. Project Charter DEFINE PROJECT DESCRIPTION: PROBLEM STATEMENT : The internal budget monitoring report for building maintenance-related expenses does not tally with official accounting records and does not provide in a timely manner, how the budget allocation was used. As a result, the figures are not reliable for planning purposes and leads to customer dissatisfaction.

  8. Project Charter DEFINE PROJECT DESCRIPTION: PROJECT GOALS : • To analyze, evaluate and improve the current budget monitoring process for the following administrative expense accounts: electricity, electrical equipment and janitorial services. • To reduce the discrepancy between monitoring/utilization report and the general ledger of Oracle to $5,000 or less.

  9. High Level Process Map START Informs OAFA-FM staff handling budget accounts of the approved budget. Prepares monitoring worksheet for each budget account and summary table. Coordinates budget utilization updates with: a. RFP creator– for updates to Services worksheet from preparation/approval of RFP for services rendered for the month. b. RP creator/coordinator– for updates to Goods worksheet based on the month’s RPs/POs and deliveries. Updates monitoring worksheets. Prepares monthly budget utilization report. Submits monthly utilization report to Director, OAFA END

  10. CTQ DEFINE

  11. DEFINE SIPOC Diagram Suppliers Inputs Process Outputs Customers OAFA-FM staff monitoring building and maintenance related goods and services Actual expenses and commitments (outstanding RPs/POs) of building maintenance-related goods and services High-Level Process Steps (See Below) Monitoring sheet/Monthly utilization report Head, OAFA-FM Director, OAFA PD, OAS Budget Coordinating Unit, OAOD Step 1: Step 2: Step 3: Step 4: Step 5: Informs OAFA-FM staff of approved budget Prepares monitoring worksheet Updates monitoring worksheet Prepares monthly utilization report Submits monthly utilization report

  12. MEASURE Summary of Discrepancies of 2005 for Janitorial Services Note: Absolute values were considered in comparing the discrepancies.

  13. MEASURE Process Capability for Janitorial Services MEASURE

  14. MEASURE Process Capability for Janitorial Services

  15. MEASURE Summary of Discrepancies of 2005 for Electrical Equipment Note: Absolute values were considered in comparing the discrepancies.

  16. MEASURE Process Capability for Electrical Equipment

  17. MEASURE Process Capability for Electrical Equipment

  18. MEASURE Summary of Discrepancies of 2005 for Electricity Note: Absolute values were considered in comparing the discrepancies.

  19. MEASURE Process Capability for Electricity

  20. MEASURE Process Capability for Electricity

  21. Detailed Budget Monitoring Process Map (As Is) for Janitorial Services MEASURE

  22. MEASURE Detailed Budget Monitoring Process Map (As Is) for Electrical Equipment

  23. MEASURE Detailed Budget Monitoring Process Map (As Is) for Electricity

  24. Cause and Effect Diagram for Janitorial Services People Technology Not familiar with Oracle-GL Inquirer and related functionalities including available reports/data N C Oracle – not user friendly Not Familiar with terminologies, policies, procedures of budget, accounting and other related procedures C Discrepancies between Actual Expenses of Oracle General Ledger and Monthly Utilization Report Work schedule of budget coordinator and OAFA-FM staff – difficulty in coordination and gathering of data Different US Dollar-Peso exchange used in monthly utilization report C C shift schedule C C Treatment of actual payment and commitments Variation of closing date of Oracle General Ledger and date of generating of monthly utilization report/ no common reference point of information Not checking actual expenses recorded in Oracle General Ledger C Procedures

  25. ANALYZE Results of Brainstorming of Proposed Solutions for Janitorial Services

  26. ANALYZE Results of Brainstorming of Proposed Solutions for Janitorial Services

  27. Cause and Effect Diagram For Electrical Equipment Technology People Not familiar with terminologies, policies, procedures of budget, accounting, accrual and other related procedures C N Oracle – not user friendly Not familiar with Oracle-GL Inquirer and related functionalities including available reports/data Discrepancies between Actual Expenses of Oracle General Ledger and Monthly Utilization Report C Different sources of data used in budget monitoring C Work schedule of budget coordinator and OAFA-FM staff – difficulty in coordination and gathering of data C Variation between closing date of Oracle GL and date of generating of monthly utilization report/ no common reference point of information. C shift schedule Not checking actual expenses recorded in Oracle GL C Procedures

  28. ANALYZE Results of Brainstorming of Proposed Solutions for Electrical Equipment

  29. ANALYZE Results of Brainstorming of Proposed Solutions for Electrical Equipment

  30. Cause and Effect Diagram for Electricity People Not familiar with Oracle-GL Inquirer and related functionalities including available reports/data C Not Familiar with terminologies, policies, procedures of budget, accounting and other related procedures C Discrepancies between Actual Expenses of Oracle General Ledger and Monthly Utilization Report Treatment of actual payment and commitments C Variation between closing dates of Oracle General Ledger and date of generating of monthly utilization report/ no common reference point of information. N C Oracle – not user friendly Not checking actual expenses recorded in Oracle General Ledger C Work schedule of budget coordinator and OAFA-FM staff – difficulty in coordination and gathering of data Different US Dollar-Peso exchange rate used in monthly utilization report C shift schedule C Technology Procedures

  31. ANALYZE Results of Brainstorming of Proposed Solutions for Electricity

  32. ANALYZE Results of Brainstorming of Proposed Solutions for Electricity

  33. IMPROVE Jan-Jun 2006 Summary of Discrepancies of Utilization Report

  34. IMPROVE Current Process Capability for Janitorial Services Jan-Jun 2006

  35. IMPROVE Improved Process Map for Janitorial Services

  36. IMPROVE Budget Utilization Report for Janitorial Services (Pilot Test)

  37. IMPROVE Budget Utilization Report for Janitorial Services (Pilot Test)

  38. IMPROVE Budget Utilization Report for Janitorial Services Data model close to zero created to show six sigma level

  39. IMPROVE Process Capability for Janitorial Services (Data Model)

  40. IMPROVE Process Capability for Janitorial Services (Comparison) Sigma Level Current FM Process Sigma Level Improved Process

  41. IMPROVE Improved Process for Janitorial Services TARGET MET!!! Given that: Sigma level of 6 = 3.4 DPMO vs. Improved process = 0 DPMO We conclude that we have reached or even exceeded our goal to reduce the discrepancy between monitoring/ utilization report and the general ledger of Oracle to $5000 or less. A zero discrepancy has been achieved for the Janitorial services improved process monitoring report.

  42. IMPROVE Jan-Jun 2006 Summary of Discrepancies of Utilization Report

  43. IMPROVE Current Process Capability for Electrical Equipment Jan-Jun 2006

  44. IMPROVE Improved Process Map for Electrical Equipment

  45. IMPROVE Budget Utilization Report for Electrical Equipment PILOT TEST

  46. IMPROVE Process Capability for Electrical Equipment - IMPROVED

  47. IMPROVE Improved Process Capability for Electrical Equipment

  48. IMPROVE Process Capability for Electrical Equipment (Comparison) Sigma Level Current FM Process Sigma Level Improved Process

  49. IMPROVE Budget Utilization Report for Electrical Equipment

  50. IMPROVE Improved Process for Electrical Equipment TARGET MET!!! We conclude that we have reached our goal to reduce the discrepancy between monitoring/ utilization report and the general ledger of Oracle to $5000 or less.

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