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Process Improvement   Chris Smolik Pps 6
 

Process Improvement Chris Smolik Pps 6

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The presentation shows how I was able to take a process that I inherited from a predecessor and improved it ultimately saving my employer over $149k annually.

The presentation shows how I was able to take a process that I inherited from a predecessor and improved it ultimately saving my employer over $149k annually.

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    Process Improvement   Chris Smolik Pps 6 Process Improvement Chris Smolik Pps 6 Presentation Transcript

    • A Recent Process Improvement Designed by Chris Smolik Focusing on: The Need to Investigate and Report Manufacturing Variances for Month End Financial Statements
    • The Process Prior to My Redesign
      • Download selected general ledger account or account groups as a comma delimited file
      • Scrub download and delete non-essential data and extraneous commas
      • Parse file, sort by elements responsible for variance, then subtotal
      • Determine large variances and investigate
      • Repeat this process for all variances (scrap, material, purchase price, labor, etc)
      • Re-key all data into desired report format
    • Deficiencies of the previous reporting method
      • Time Consuming – taking up to 8 hours to compile
      • Incomplete – reported only selected elements that had a history of “material exception”
      • Material exception criteria was subjective
    • But most importantly …
      • The process was ‘Reactive’. Month end reporting fostered a ‘witch hunt’ mentality that subjugated the real focus of a standard costing system
    • The Process After My Redesign
      • Pull one download (.csv) – saving time
      • Run one macro that accomplishes all repetitive, and non-value adding tasks. Also adds vlookups and other informational formulas to standardize data for use with pivot table – saving time, reducing errors
      • Paste data into pivot database and refresh pivot table
      • Work with operations to determine how variances can be reduced or eliminated in the future and verify that current variances are represented accurately
    • Achievements accomplished by redesign
      • Complete report generated in less than 30 minutes – saving hours of non-value added activity
      • Data base and pivot table includes all data and history and can be reconfigured in minutes to illustrate given exceptions or provide greater detail
      • ‘ Subjectivity’ eliminated using conditional formatting to highlight favorable or unfavorable variances
    • Yet the biggest benefit …
      • The redesigned process was Proactive . This report could be used on an interim basis to support operations by helping solve problems and achieve the standards they helped set
    • And how much in dollars did it save?
      • Since I could produce the analysis as an interim report, we reduced the monthly material variance by over $12,000
      • Because it saved over 7 hours per month the annual savings was over $5,000
      • My former employer has given me permission to share this reporting procedure with you. While the values and variances would be fictitious, the methodology is that which was actually developed.
      • If you would like to see screen shots or further detail of this process please feel free to call or email.
      • Chris Smolik
      • 262-252-5377 Home
      • 414-232-9249 Cellular
      • [email_address]
      • This is one of many process improvements that I have led and developed. Here are a few others:
        • Quality Cost reporting improvements – saving $4,000 annually
        • Key item and backlog reporting – saving $2,000 annually
        • Month end process improvements – saving $1,500 annually
      • As you can see I have saved my previous employers many thousands and built goodwill and other intangible assets between accounting and operations in the process.
      • It is for these reasons I feel that I could be a good addition to your accounting team .
      • Chris Smolik
      • 262-252-5377 Home
      • 414-232-9429 Cellular
      • [email_address]