Identification and Analysis of Value Added and Non-Value Added Steps in Work Processes

TOPIC: IDENTIFICATION OF VALUE ADDED AND NON-VALUE ADDED STEPS IN WORK PROCESSES.

Introduction: Every business has many processes involved as a part of their operation. Each step or stage involved in these work processes affect the overall working & profitability of the company. value addition done at each of these stages needs to be analysed to better understand the process as well as improving it further.

For the purpose of this paper we havve considered one of the overseas operation unit of a US based Outsourcing & consulting firm. Identity of the company has not been revealed for security reasons.We hope this report is of assistance to understand implications of value addition in each stage of work processes.

Problem Statement: Analysis of Transportation Processes in XYZ Back Office Processing Pvt Ltd,. (This is just a fictitious name for the actual Outsourcing & consulting MNC, Identity not revealed for security reasons) to identify non value added processes and eliminate or replace them for cost saving.

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Transport (car pools) & billing of transport expenses in XYZ BPO Pvt Ltd,. Services Pvt Ltd,.

For the purpose of this assignment we have considered transport system of XYZ BPO Pvt Ltd,. alone.

As a part of the companyЎ¦s policy XYZ BPO Pvt Ltd,. provides transport facility for almost all its employees. However it is not cost effective to own and maintain a car pooling service with over 2000 cabs. Hence, XYZ BPO Pvt Ltd,.has outsourced the transportation function to a local taxi cab service (identity not disclosed for confidentiality purpose). The normal procedure followed to deliver the transport service and also clearance of the billed expenses to the service provider has been portrayed in Diagram 1(Process 1).

Non value added steps in process 1:

step1:Employees: Request for transport & input information (residence address, shift schedule etc,.)

step 2:Team Leader/ representatives or Transport SPOCS:

They authorize and communicate all transport requirements & transport rosters

step3:TL/ representatives or Transport SPOCS:

They authorize and communicate all transport requirements & transport rosters

step4:Service providerЎ¦s coordinators

step5:Actual transport services delivered to employees

step6:Reports filed with detailed Bills of miles run for clearance

step8:Accounting dept: filing verification & clearing of transport bills to service provider

step7:Are billed miles run valid?(verified by transport manager)_

IF YES:

step9:Accounting dept:clearing of transport bills to service provider

IF NO:

Then

step9:Accenture Transport coordinators verify the billed hours and send it back to accounts department for approval

&

step10:Accounting dept:clearing of transport bills to service provider

„X Billing verification happens after bills are submitted to accounts where it is put back to transport managers and then to transport department if required.

„X Employees had to go through Team leaders, XYZ BPO Pvt Ltd,.Ў¦s transport coordinators, service providerЎ¦s coordinators, etc to file transport request or to update information.

„X Miles run were recorded and reported manually making it