Corporate process improvement is a major factor towards improved efficiency and customer service. An ÃÂÃÂAs-IsÃÂÃÂ flow chart of the accrual process is supplied, the relationship to the organizationÃÂÃÂs strategic plan is discussed, the internal and external customers are identified, while potential impact on these customers is noted. The most appropriate quality management tool is used to collect and present data for process improvement changes. Even more, improvement opportunities are identified, and the level of value to the organization is assessed. The simulation ÃÂÃÂQuality Management and ProductivityÃÂÃÂ introduces a number of quality concepts that are also discussed in relation to the companyÃÂÃÂs process improvement.
Goals of the OrganizationThe goal of a Total Quality Management organization is to strive for success and excellence in everything they do beginning with the strategic plan. ÃÂÃÂCompanies clearly have a competitive advantage when they can develop an effective strategic planÃÂÃÂ (Strategic Planning for Business Excellence, 2002).
Total Quality Management (TQM) consists of an integrated approach to define and document principles, processes, production, and the best practices that provide the organizational framework of excellence. Corporate process improvement is a major factor towards improved efficiency and customer service, and this review looks at the possibility of improving a financial process.
Identified ProcessOne of the many financial processes that has the potential to cause setbacks in system downloads is the monthly accrual process. The accrual process consists of identifying, approving, and posting in a companyÃÂÃÂs expenditures which must be accrued at fiscal month-end in order to recognize the expenditures in the appropriate accounting period. This process applies to all base operations, maintenance, administration, capital, and minor fixed assets. If the accruals are not processed in a timely manner, then significant variances in various project and financial reports are likely.
A reason for untimely accruals may be the lack of...