Current State Value Stream Map Purchasing—Non-repetitive purchases less than $5,000

Initiate Request = 31 PT =10 mins. C&A = 10% Hard Copy Supplies 1

Originator

Form File

File Maker

Quicken

Excel

Vendor Web site

ERP


Data Entry

Review Budget
=6 2 hrs

2

3 4 Review Review Requisition 20 Reqs. Requisition
Supervisor =2 System Engineer =1

I

5 Review Requisition
IS Manager =1

6 Review Requisition
Financial Manager =1

7 Enter Approve Requisition 20 Reqs. in ERP
Admin. Assistant =1

I

8

I
63 Reqs.

Submit PO 9 to Supplier
Corp. Purchasing =6

Finance

Corp. Purchasing Manager =1

10 External Supplier

PT = 5 mins. C&A = 60%

4 hrs. PT = 5 mins. 40 hrs. PT = 5 mins.

8 hrs. PT = 5 mins. 8 hrs. PT = 10 mins. 4 hrs. PT = 15 mins. 24 hrs. PT = 5 mins. 56 hrs. PT = 15 mins. 80 hrs.

C&A = 95%

C&A = 90%

C&A = 100%

C&A = 95%

C&A = 98%

C&A = 90%

C&A = 98

0.25 days 5 mins.

0.5 days 5 mins.

5 days 5 mins.

1 day 5 mins.

1 days 10 mins.

0.5 days 15 mins.

3 days 5 mins.

7 days 15 mins.

10 days

LT = 28.4 days PT = 65 mins. AR = 0.477%

Customer Demand: 615 requisitions per year © 2007 Karen Martin & Mike Osterling

RFPY = 4.2% PT = Process Time LT = Lead Time C&A = % Complete & Accurate AR = Activity Ratio (PT/LT x 100) RFPY = Rolled First Pass Yield

Future State Value Stream Map Purchasing—Non-repetitive purchases less than $5,000
Additional IT access Enter Req. 1 in ERP Originator
= 31

PT = 30 mins. C&A = 85% Integrate Form File with File Maker Requisition Checklist Supplies

Vendor Website

File Maker

ERP Use Budget in Place of Quicken

Standard Work for Review Process

Cross Training

Auto Notify

Approval

Review Request
=2 4 hrs

2

Additional IT Access

Dedicated Buyers Approve in ERP 3 Place Order 4 External Supplier
80 hrs.

5

Supervisor

Dept. Manager =1 6 hrs.

Corp. Purchasing =6 8 hrs.

PT = 5 mins. C&A = 95%

PT = 5 mins. C&A = 90%

PT = 20 mins. C&A = 98%

0.5 days 5 mins.

0.75 days 5 mins.

1 day 20 mins.

10 days

LT = 12.3 days PT = 30 mins. AR = 0.508%

Customer Demand: 615 requisitions per year © 2007 Karen Martin & Mike Osterling

RFPY = 71% PT = Process Time LT = Lead Time C&A = % Complete & Accurate AR = Activity Ratio (PT/LT x 100) RFPY = Rolled First Pass Yield

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