DEFINE

1. Project Title : Improve implementation of IT inventory Management (Network IT Equipment) (jointly with OIST) Project Code : OAFA-06-03/1W Champion : Sunil MitraTeam Leader : Eric Cruel Members : Mila Aquino Nestor Martin Vic Bautista Anthony Esteras

2. Project Charter DEFINE • PROJECT DESCRIPTION: • PROBLEM STATEMENT : • Network IT equipment management has neither the database management and monitoring of transfer and relocation. No physical inventory has been undertaken by OIST to determine the actual inventory of Network IT equipment, different units have different IT equipment needs and requirements. Records of these Network IT equipment are inconsistent, not updated and some are not included in the ORACLE FA database. • Based on the Six Sigma Project: OAS 05-010, there were 36.72% discrepancies for USER IT equipment inventory from the 2004 IT equipment confirmation exercise, thus internal control and management is weak.

3. Project Charter DEFINE • PROJECT DESCRIPTION: • GOAL STATEMENT : Minimize future discrepancies of inventory to 0%.Clean-up and establish a complete and accurate record of Network IT equipment and staff accountability in the ORACLE Fixed Asset Register; Complete the physical inventory taking and reconciliation by last quarter of 2006; define responsibilities of OAS and OIST in Network IT equipment inventory management.

4. Project Charter DEFINE • PROJECT DESCRIPTION: • BUSINESS CASE : One of the themes of OAS to be more effective is accountable and responsive asset management – improve materials management accountability and record. An updated Network IT equipment database will minimize losses, physical inventory taking, database management and staff hours in tracking the equipment.

5. SIPOC MAP PROCESS DEFINE Process Input Output Customer Supplier CTQs S I P O C OIST OAFA-AP OAIS_PC Other depts / offices RITS Computer Movement Form PO RR Contracts Complete and accurate record of accountability Improve IT equipment inventory management Management Users ADB wide Accurate Database of IT equipment Cost reduction Increase efficiency Receive goods, Create RR Inspect, Test and Acceptance Process RR Post in Database / Payments Storage, Issues and Returns, Disposal Maintenance of Oracle FA Disposal (to Contractor)

6. High Level Process Map (PO) DEFINE

7. CTQ DEFINE High Level Need Accurate Record of Network IT Equipment Reduction of Network IT equipment record discrepancy in ORACLE FA database. Output C T Q The process starts with the review of Network IT equipment ORACLE FA database records, Network IT equipment monitoring and database administration and control. Project Y ( Little Y ) Measure After which a physical inventory will be conducted and reconciliation of physical inventory results with database records. Network IT equipment can enter HQ thru PO and contracts. Specification Limits Unknown number of IT equipment; unknown degree of discrepancy; these will be reduced to 5% discrepancy Target Up to Third quarter of year 2006. Discrepancy of record (Wrong accountable staff, Wrong location. Lost item, Item not recorded in database) Defect No. of Defect opportunities per unit. Opportunities per unit – Staff accountability, location, Lost item, Wrong data details, No PCN/Tag No. attached, Unaccounted, Not recorded in database

8. Start STORAGE & DISTRIBUTION Process Flow Chart (PO) Receiving Report (RR) Closes RR in Oracle (OAFA-AP) Property Control Number (PCN) Payment (CTL) Receives/Inspects IT Equipment (Network IT) Deploy? Accept? Yes End Property Accountability Receipts Without Property Control Number (PCN) Yes Signed RR No Store in DataCenter (OIST) End No Advises OAIS-PC about findings to inform supplier to replace defective goods (OAFA-AP) Return goods To Suppliers (OAFA-AP) Returns to OAFA-AP DEFINE

9. DEFINE Start STORAGE & DISTRIBUTION Process Flow Chart (Contracts) Request for Payment by END-USER Property Control Number (PCN) Payment (CTL) Receives/Inspects IT Equipment (Network IT) Deploy? Accept? Yes End Property Accountability Receipts Yes No Store in DataCenter (OIST) End No Return goods To Suppliers

10. Policies &Procedures OperationalProcess Planning - Requisitioning Administrative Circulars Procurement (PO or Contract) Receiving and Inspection Administrative Orders Storage / Warehousing Distribution Department’s Guidelines & Procedures Transfer to RM Disposal Assets Management Roles and Responsibilities Database Mgmt per section Warehouse Location & Layout Organization Structure & Functions Database SystemsMgt MEASURE Posting in databases

11. MEASURE

12. MEASURE IT equipment Inventoried in Datacenter

13. MEASURE ORACLE FA Database Records

14. MEASURE

15. MEASURE

16. MEASURE

17. MEASURE

18. ANALYZE Discrepancy Causes

19. ANALYZE Discrepancy Causes • Unrecorded in ORACLE FA database • Failure to record in database due to procurement by contract • Wrong requisition by requestor • 2. Not properly disposed of (no PCN) • Failure to record in database • Failure to affix PCN/barcode label • 3. Accountability not updated • Accuracy of Oracle System • Failutre to record in database • Erroneous posting of accountability • OIST / OAS unclear delineation of functions • 4. Misplaced/Transferred to RM • Failure to record in database • Failure to affix PCN / barcode label • Detached PCN / barcode label • Gate Pass/Shipping documents

20. ANALYZE Discrepancy Causes • Erroneous posting • IT equipment was lent or supplied by software provider • Wrong requisitioning process i.e. use of 1 lot as UOM • 6. Items replaced without documentation • No documentation for replacement or trade in • 7. Others • Failure to record in database • Accuracy of Oracle System • Storage / Warehousing

21. Cause & Effect Diagram for Inventory Management System of Network IT Equipment ANALYZE Operational Process Policies and Procedures Failure to record in database (receipt, transfer, disposal, lost) C N RITS Erroneous posting of accountability Software Requirements N C Failure to affix PCN/barcode label Gate Pass C C Detached PCN/barcode label Physical Inventory C C Storage/Warehousing C Administrative Orders/Circulars N IT Equipment Inventory Discrepancy C Accuracy of Oracle System C Receiving Staff C C Requestor/End user Posting of Relocation/Disposal C OIST / OAS under delineation of functions Date Base Management System Organization Structure and Function

22. ANALYZE

23. ANALYZE

24. IMPROVE

25. IMPROVE Results of Brainstorming of Proposed Solutions for Inventory Management System of Network IT Equipment (1)

26. IMPROVE Results of Brainstorming of Proposed Solutions for Inventory Management System of User IT Equipment (1)

27. Results of Brainstorming of Proposed Solutions for Inventory Management System of User It Equipment (2) IMPROVE

28. IMPROVE Risk Assessment for Improved Process for Inv. Mgnt. System of Network IT Equipment

29. IMPROVE Risk Assessment for Improved Process for Inv. Mgnt. System of Network IT Equipment

30. IMPROVE Commitment Scale for Inventory Management System of Network IT Equipment Steps: 1.Plot where departments currently are with regard to desired change (XX = current). 2. Plot where individuals need to be (√√= desired) in order to successfully accomplish desired change – identify gaps between current and desired. 3.Indicate how individuals are linked to each other; draw lines to indicate an influence link using an arrow (  ) to indicate who influences whom.

31. CONTROL QUICK WINS

32. Cost Inventory Management System of Network IT Equipment 1. Physical Inventory of Datacenter 2. Other implicit cost (verification of PI results, retraining of ORACLE requisitioners, etc.) 3. Other explicit cost (cost in gathering data-PI, equipment (scanners), etc.)

33. Benefits Inventory Management System of Network IT Equipment 1. Accurate ORACLE FA records – accurate insurance cost, reduction in administrative cost in future physical inventory and inventory management activities like disposal/retirement.

34. Thank you OAFA-06-03/1W