Lean Six Sigma Transaction Process Initiative

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Lean Six Sigma Transaction Process Initiative

• Presented byKathryn Lynn, Forest Service

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Project Overview

• Forest Service (FS) began the initiative to
  continue their transformation of newly
  centralized Budget and Financial operations at
  the Albuquerque Service Center (ASC).
• The goal of the document management solution is
  to reduce reliance on redundant and non-value
  added work associated with paper documents.
  Simply, to get the paper out of the process.
• The LSTP Project Team consists of Subject Matter
  Experts and Leadership from the Forest Service
  and USDA.
• The USDA CFO regards the Forest Service
  initiative (formerly Paperless Invoice
  Processing), relating to IAS payments and non-IAS
  contract payments, as part of the USDA Lean Six
  Sigma Transaction Process (LSTP) initiative.

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Background Forest Service

• The Forest Service formed a Payment Strike Team
  in 2005 to identify problems associated with
  untimely vendor payments.
• Highlights of the February 2006 findings
• Over 25 invoices/receipts received at the ASC
  after the due date
• Over 86Million worth of good and services
  processed through IAS had been "receipted for",
  but had not been paid for a variety of reasons
• Roughly 125K a month paid in interest penalty
  payments under Prompt Pay Act
• Many complaints and Congressional inquiries
• Damaged relationship with the public/vendors/commu
  nity, ASC, and Field.
• Payment Strike Team Recommendation Implement
  Document Management Solution (Electronic invoice
  processing)

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Background Forest Service/USDA

• Oct 2006 February 2007
• Developed and validated the functional
  requirements at four Forest Service Pilot Units
  for the document management solution.
• Obtained approval from Regional and Executive
  Leadership on the designed functional solution.
• Benchmarked and evaluated scanning and software
  solutions to meet functional requirements.
• March 2007
• Decision made to use existing infrastructure at
  USDA Rural Development (RD) Centralized Servicing
  Center (CSC) for processing mail and scanning and
  indexing invoices to create electronic invoice
  image to enable work flow routing for review and
  approval.
• Decision made to use USDA-owned existing
  enterprise solution developed by USDA RD
  Enterprise Technology Branch (ECM _Enterprise
  Content Management).
• Decision by USDA CFO that the FS effort was part
  of the USDA CFOs Lean Six Sigma Transaction
  Processing (LSTP) Initiative.
• USDA CFO asked the Forest Service and its
  Executive Jesse King, CFO to lead the
  departmental effort
• Decision made to implement solution
  Department-wide.
• Conducted a collaborative Technical Validation
  Session with RD developers, FS Representatives,
  and USDA Representatives.

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Lean Six Sigma at the USDA

• The Lean Six Sigma methodology includes a suite
  of tools to help maximize the speed, efficiency,
  and quality of our business processes. LSTP is
  one of four USDA Lean Six Sigma initiatives
  currently underway. These initiatives are
• LSGP Lean Six Sigma Grants Process (lead by
  Office of the Chief Financial Officer)
• LSTP - Lean Six Sigma Transaction Process (lead
  by Forest Service)
• LSIP - Lean Six Sigma Insurance Process (lead by
  Risk Management Agency)
• LSLP Lean Six Sigma Loans Process (lead by
  Rural Development)

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LSTP Solution
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Solution Overview

• USDA RD Enterprise Technology Branch will develop
  the designed solution using Stellent Content
  Server and Enterprise Content Management (ECM).
• The FS will enter into contracts with IBM and CGI
  Federal to develop the system interfaces with IAS
  and FFIS (respectively). These interfaces will
  reduce data entry and improve data accuracy.
• The USDA and FS will enter into an SLA with RD
  Centralized Servicing Center (CSC) to scan
  unapproved invoices for the Forest Service pilot
  locations and approved invoices for all other
  USDA agencies, leveraging the existing document
  scanning and indexing facility in St Louis, MO.

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Solution Approach

• Phase 1 June 2007
• Solution All USDA IAS contract invoices will be
  in an electronic format stored in a central
  repository prior to payment processing by USDA
  COD APB.
• Benefit Mitigates the risks associated with
  paper documents.
• Phase 2 November 2007 March 2008
• Solution Further leverage existing technology
  workflow to route, approve, and process
  electronic invoices.
• Benefit Enhances the speed and control of
  invoice processing activities to pay vendors on
  time, reduce prompt pay interest payments, and
  reduce costs per transaction.

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Phase I Overview

• Vendors will continue to send IAS non-direct pay
  invoices to the field for approval, and the
  Contracting Office will send approved invoices to
  RD CSC for scanning and indexing.
• Vendors will send IAS direct pay invoices (that
  do not require field approval) directly to RD
  Centralized Servicing Center (CSC) for scanning
  and indexing.
• RD CSC will route the electronic image of the
  invoice to USDA COD APB for payment processing
  using the ECM workflow solution.

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Phase I Impact
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Phase II Overview

• All vendors will send invoices directly to RD CSC
  for scanning and indexing.
• RD CSC will route the IAS non-direct pay invoices
  and non-IAS invoices to the field for review and
  approval using the ECM workflow. IAS direct pay
  invoices will be routed directly for payment
  processing.
• Through the ECM/IAS interface, approved or IAS
  direct pay invoices will be processed for payment
  through an automated matching process.
• There will be an ECM/FFIS Interface to process
  non-IAS contract payments.

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Implementation Timeline
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High-Level Project Timeline

• Phase I
• Development and Testing May 2007
• UAT and Training June 2007
• Implementation June 2007
• Phase II
• Development and Testing July September 2007
• UAT and Training October 2007
• Implementation (FS Pilot Units) November 2007
• Implementation (FS Non-Pilot Units) December
  2007 March 2008
• Department Implementation TBD - 2008

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USDA Collaboration
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LSTP Team Composition
Project Leaders
Project Stakeholders
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USDA Collaboration

• The solution that the Forest Service has
  developed through requirements sessions and
  collaboration with the USDA is not a Forest
  Service solution this is a USDA solution.
• This is a joint effort between those at the USDA
  and Forest Service, with the objective to ensure
  that the solution developed for LSTP will meet
  the needs of all USDA Agencies and Staff Offices.