SERVICES DIVISIONBreakthrough Process Improvement Case Study    “IMPROVING VISA INVOICING PROCESS”     The Kanoo Group Cen...
Introduction• The Kanoo Group Services Division  provides the following services to Kanoo  Divisions, JVs and associated c...
Business Case    The processes involved in providing above services had the    following problems:•   Excessive paperwork•...
Stakeholders• Internal customer departments, Kanoo  employees• External customers (JVs, customers of  internal customers)•...
Voice of Customer• Meetings held with internal customers (Kanoo Shipping,  Kanoo Travel and JVs) to understand their servi...
Voice of People• Meetings held with PROs to know their problems and  suggestions..• PROs’ required:   – Shorter cycle time...
Project CharterThe Problem Statement:• Reduce paper consumption for invoices (1,200 sheets per  month) by 50%• Reduce man-...
Project TeamThe teams involved: – Service Accountant – PR Department – IT Department – Software developer (Kanoo JV).     ...
Project Timeframe– Start Date January 2010– Target completion by 30-April-2010.                                        9
Process Flow (Before)                            Standard documents                              requirements and         ...
System SpecificationA.The team developed a specification  document for an IT system considering the  VOC and VOP.B.Designe...
System SpecificationA.The team developed a specification  document for an IT system considering the  VOC and VOP.B.Designe...
System SpecificationC. The team identified various job types and  defined their require:  –   Labour Department related  –...
System SpecificationE. Interfaces with other systems were defined:  – Pay roll system  – Main financial system  – Accounti...
System DevelopmentA. Development team (Gemini) developed a   proto-typeB. Presentation was made to the project teamC. Prot...
Modified Process                                PR Deptt Secretary                          Accounts verify the           ...
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Trial ImplementationA. “Visa Invoicing System” was implemented on   trial basis in April 2010.B. Parallel run was carried ...
Full ImplementationA. “Visa Invoicing System” was fully implemented   in May 2010.B. System was updated in October 2010 to...
Benefits1.    Invoicing for Service Jobs become instant (invoice is raised soon after completion      of a job)2.    Respo...
Horizontal Deployment•   The same system is being implemented in:     •   Kanoo Group Abu Dhabi     •   YBA Kanoo Group, O...
Further Improvements•   The system will be made web-based so that customers    can query job status on-line from anywhere ...
Single Point Lesson•   By involving stakeholders and systematically taking    their inputs, a flexible, user friendly and ...
Recognition•   Appreciation received from external and internal    customers.•   Appreciation of project team by Group Man...
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WQD2011 - Breakthrough Process Improvement - The Kanoo Group - Improving Visa Invoicing Process

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Breakthrough Process Improvement case study submitted by The Kanoo Gorup during 3rd Continual Improvement & Innovation Symposium organized by Dubai Quality Group's Continual Improvement Subgroup to celebrate World Quality Day 2011.

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WQD2011 - Breakthrough Process Improvement - The Kanoo Group - Improving Visa Invoicing Process

  1. 1. SERVICES DIVISIONBreakthrough Process Improvement Case Study “IMPROVING VISA INVOICING PROCESS” The Kanoo Group Central Accounts Team (Ashraf Ahmed, Mr. Ahmed Ali, Mr. S.A. Kapadia) 1
  2. 2. Introduction• The Kanoo Group Services Division provides the following services to Kanoo Divisions, JVs and associated companies: – Arranging employment visa – Visit visa from Immigration – Consulate services (visa, passport renewal etc.) – Attestation of papers from Chamber of Commerce, Ministries• Six full time employees• Covers Dubai and all Northern Emirates 2
  3. 3. Business Case The processes involved in providing above services had the following problems:• Excessive paperwork• Manual handling of documents• Manual job registers• Manual typing of invoices – Approx. 400 per month – Each includes 10 to 15 transactions• Manual checking and correction of errors in invoices• No information on status of jobs• Delays in invoicing causing – Blocking Company’s cash in work in progress – Delays by customer departments in their own invoicing to external customers – Difficult to PROs to account cash float (AED 250,000) 3
  4. 4. Stakeholders• Internal customer departments, Kanoo employees• External customers (JVs, customers of internal customers)• PROs• Service Accounts• Central Accounts & Credit Control• IT• Development team (Gemini) 4
  5. 5. Voice of Customer• Meetings held with internal customers (Kanoo Shipping, Kanoo Travel and JVs) to understand their service level requirements.• Each internal customer gave their needs and expectations: – Cycle times for • response to queries • Invoicing – Cost and service charge details in invoices – Periodic account statements and status reports 5
  6. 6. Voice of People• Meetings held with PROs to know their problems and suggestions..• PROs’ required: – Shorter cycle times for • Re-imbursement of cash float • Reduction in paperwork • Easy access to information to be able to answer customers’ queries 6
  7. 7. Project CharterThe Problem Statement:• Reduce paper consumption for invoices (1,200 sheets per month) by 50%• Reduce man-hours required for manual typing of invoices from 300 per month to 50 per month.• Reduce time wasted in searching for job status from 50 hours to less than 5 hours• Reduce errors from 25 per 100 invoices to near zero error.• Reduce invoicing cycle time from 30 days to 1 day.• Reduction in customer complaints (from 10% of transactions to near zero).• Reduction in cash float from AED 250,000/- to less than AED 100,000/- 7
  8. 8. Project TeamThe teams involved: – Service Accountant – PR Department – IT Department – Software developer (Kanoo JV). 8
  9. 9. Project Timeframe– Start Date January 2010– Target completion by 30-April-2010. 9
  10. 10. Process Flow (Before) Standard documents requirements and Record payment other Start details in the manual Customer service fees informed job register complaints to customers for lack of Receive request from information customer Check manual job Answer register periodically customers’ and follow up for queries Records details in a pending jobs Job Register Collect processed Delivery to document from the Excessive paper Customer customer Verify documents to be concerned authority consumptions complaints submitted (1,200 for delays sheets/month)File all papers in job 25% error file, update register Retyping lostNot OK rate, 50 man Dispatch invoices All OK? PRO’s cash float per hours invoicesto customers Delays, time OK month Type manual invoices consuming reconciliation of Corrections & costing sheet PRO submits cash float Reimbursement documents to the to PRO Not OK relevant authority and Check by pays required fees Accounts OK End 10
  11. 11. System SpecificationA.The team developed a specification document for an IT system considering the VOC and VOP.B.Designed formats for: • Invoice • Cost statement • Job Status Report • Work In Progress Report • Proforma cost re-imbursement form 11
  12. 12. System SpecificationA.The team developed a specification document for an IT system considering the VOC and VOP.B.Designed formats for: • Invoice • Cost statement • Job Status Report • Work In Progress Report • Proforma cost re-imbursement form 12
  13. 13. System SpecificationC. The team identified various job types and defined their require: – Labour Department related – Immigration related – On-line visa – E-wallet jobs – Consulate jobs• Sub categories of main job types were also identified.D. Modules were defined for each job sub-type. 13
  14. 14. System SpecificationE. Interfaces with other systems were defined: – Pay roll system – Main financial system – Accounting rules were defined based on HR & Accounting policies – Auto generation of accounting entries were specified based on the above rules 14
  15. 15. System DevelopmentA. Development team (Gemini) developed a proto-typeB. Presentation was made to the project teamC. Proto-type system was evaluated by the project team and auditors for one week.D. Taking the feedback, the development team developed “Visa Invoicing System”. 15
  16. 16. Modified Process PR Deptt Secretary Accounts verify the Start expense claims and allocates jobs to PROs and hands over settle the cash float PR department documents to them amount receives request from customers PROs carry out jobs Accounts raise invoice Verify documents to be with the concerned to the customers submitted govt. deptt. and pays the required feesNot OK When the concerned All OK? Govt. Deptt. approves / PROs updates job disapproves the OK status in the system on application, PRO daily basis collects the documents PR Deptt Secretary and delivers to the enters job details in the customer Visa Invoicing system PROs prints the and creates a job Expense Claim form on daily basis from the system Customer queries End are answered 16
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  19. 19. Trial ImplementationA. “Visa Invoicing System” was implemented on trial basis in April 2010.B. Parallel run was carried out for the first one week.C. Minor problems were reported to development teams and these were fixed. 19
  20. 20. Full ImplementationA. “Visa Invoicing System” was fully implemented in May 2010.B. System was updated in October 2010 to include reference numbers given by the authorities (e.g. Ministries). 20
  21. 21. Benefits1. Invoicing for Service Jobs become instant (invoice is raised soon after completion of a job)2. Response time to customer’s queries was reduced.3. Customer complaints reduced from 10% of transactions to less than 0.1%4. Internal customers’ cycle time for invoicing to their customers was reduced (e.g. Kanoo Shipping)5. Tailor made reports could be provided to customers.6. Cash float reduced from AED 250,000 to AED 90,000/-7. Man-hours required for invoicing and corrections reduced from 400 to 50 man- hours / month. This enabled us to take care of additional volume of business without increasing man-power.8. Net Income increased from AED 0.6 million to AED 1 million p.a. with the same number of employees.9. Month end accounts closing became shorter due to integration with Payroll and Accounting systems.10. Paper consumption for invoicing reduced from 1,200 sheets to 200 sheets per month.11. Increased employee satisfaction due to shorter reimbursement cycle.12. Auditors satisfied with process due to reduced risks. 21
  22. 22. Horizontal Deployment• The same system is being implemented in: • Kanoo Group Abu Dhabi • YBA Kanoo Group, Oman • YBA Kanoo Group, Bahrain • YBA Kanoo Group, KSA• The system can be commercially marketed to other big corporate groups and business services providers. 22
  23. 23. Further Improvements• The system will be made web-based so that customers can query job status on-line from anywhere in the world.• Modular structure is flexible and it can take up more modules with changes in Government policies (e.g. Mission Visa) 23
  24. 24. Single Point Lesson• By involving stakeholders and systematically taking their inputs, a flexible, user friendly and efficient system can be designed.• Consultation with stakeholders at each stage of development helped faster implementation. 24
  25. 25. Recognition• Appreciation received from external and internal customers.• Appreciation of project team by Group Management. 25

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