Lean Six Sigma Transaction Process Initiative

1
Lean Six Sigma Transaction Process Initiative

• Presented byTiffany Taylor, Forest Service

2
Presentation Overview

• LSTP Overview
• Phase 2
• Finance Impacts

3
Background

• Part of USDA CFO/CIO initiative for a common
  desktop solution for work processing
• Transactional Processing (LSTP) Grants
  Processing (LSGP) Loan Processing (LSLP) and
  Insurance Processing (LSIP)
• Forest Service currently has lead on TP and GP
• Software Utilized includes Oracle IPM, Kofax,
  Stellent CM, Microsoft CRM
• Interfaces required Integrated Acquisition
  System (IAS) Federal Financial Information
  System (FFIS) Enterprise Content Manager (ECM)
  US Treasury Internet Payment Platform (IPP)
• Two phases of development and implementation

4
Project Goals

• Streamline and automate manual processes
• Eliminate the movement of paper invoices
• Validate data using standardized system business
  rules
• Use Workflow to route electronic invoices and
  perform automatic escalation
• Enhance speed and control of invoice processing
  activities
• Reduce impact on the field
• Record liabilities in a timely manner
• Pay vendors on time reduce prompt payment
  Interest
• Improve customer service and vendor relationships
• Reduce costs per transaction

5
Phase I

• LSTP Phase I successfully went live on July 16,
  2007.
• In the Phase I solution, all USDA IAS contract
  invoices are in an electronic format in a central
  repository prior to payment processing by USDA
  COD APB. This mitigated the risks (realized
  during Hurricane Katrina) associated with paper
  documents prior to 2007 Hurricane Season
• Phase 1.3 adds workflow functionality at agency
  level without live interfaces
• Validates agency workflow for Phase II
• FS Pilot using up to 10 Contracting Officers
• Estimated Go-Live late June 2008

6
Phase II

• The Phase II solution will leverage the Oracle
  IPM product to route, approve, and process
  electronic invoices.
• Features of Phase II which will increase the
  efficiency of the process include
• Enabling both IAS and MiscPay contract invoice
  types
• Interfacing with IAS and FFIS to validate invoice
  and contract data, reduce data entry, and improve
  data accuracy
• Building workflows according to set business
  rules
• Allowing for systematic escalations when users
  fail to take action within a set period of time
• Utilizing data and reports for performance
  metrics and accountability.
• The LSTP Executive Sponsors, Chuck
  Christopherson, Jesse King, and Glenn Haggstrom,
  signed-off on the LSTP Business Requirements on
  November 1, 2007.

7
Workflow
8
Core Team

• LSTP Core Team was assembled in March 2007
• FS Acquisition Management
• FS Chief Financial Officer Albuquerque Service
  Center (ASC) and Financial Management
• FS Business Application Office (BAO) includes
  contractor support
• USDA Office Procurement and Property (OPPM)
  Procurement Systems Division (PSD)
• USDA ACFO Financial Policy and Planning
• USDA OCFO/Controller Operations
  Division-Administrative Payments Branch (COD-APB)
• USDA Rural Development Enterprise Technologies
  (ET) includes contractor support
• USDA Rural Development Customer Support Center
  (CSC)
• CGI Federal FFIS OM support

9
Effects on Finance

• Invoices which are not proper will be rejected
  prior to any processing.
• Receipt information will be able to be inputted
  by the COR/COTR or Requisitioner in LSTP instead
  of having to have the requisitioner go back into
  IAS to create a receipt. Receipts for Misc Pay
  will also be documented.
• Invoices which are less than 2500 will process
  immediately without a receipt in order to
  expedite payment and reduce interest charges.
  HOWEVER, receipts will still be required to be
  entered for every invoice and a sampling system
  will validate transactions after the fact.
• Misc Pay type invoices will automatically
  interface payment voucher with FFIS (no manual
  entry)
• Electronic audit trail will be available to
  agency and auditors

10
Phase II Timeline

• Deploy ECM 1.3 to pilot FS groups Summer 2008
• Deliver Pilot System Fall 2008
• Configure/Train Pilot Users Late Fall 2008
• Implement Pilot for FS Late Fall 2008
• Update design/software as needed Fall 2008-Spring
  2009
• Work with USDA agencies on workflow design Fall
  2008-Fall 2009
• Deploy remaining FS Spring 2009
• Deploy ECM 1.3 to validate workflows to pilot
  groups of all other USDA agencies using phased
  approach Spring 2009-Fall 2009
• Deploy LSTP Phase 2 to all other USDA agencies
  using phased approach Summer 2009-Spring 2010