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Business Process Study: Final Paper Human Resources Development Office-UP Diliman EXECUTIVE SUMMARY The Human Resources Development Office of UP Diliman is a non-profit government organization that provides employment-related services to UP Diliman personnel. The Benefits Section is the chosen area of study since it handles many critical services that entail urgency in process completion, thus requiring efficiency in its operations. The project is focused on a systematic execution of all the phases for process improvement. It aims to employ a systems and procedures approach for documentation, analysis, and problem resolution through correct and broad application of concepts, methods, and tools learned in class and in present and previous industrial engineering courses. The first phase for improvement, setting the strategic direction, was completed through formulation of the Benefits section’s mission and vision, and business model. The external environment was also examined by listening to the voice of the customer. Furthermore, investigation was done on the system to know the organization’s strengths, weaknesses, threats, and opportunities. Data gathering was accomplished through documentation, surveys, and interviews. Tools used for presenting information include the flowchart, sipoc and sirporc, detailed activity diagram, and forms flow diagram. The second phase, organizing for improvement, was carried out using close and careful process scrutiny. The proponents looked into three processes namely, filing of leaves, filing of travel leaves, and filing of leave without pay. The aforementioned processes are the most tedious, inefficient, and time- consuming of all work done by the section. The organization’s strategy, critical to satisfaction metrics, specific performance targets, target diagram, and the value stream map were used to define the group’s objective for the company, that is, to reduce its leave application process completion to one day. Performance of current state processes, which is an instrument for evaluating how well the company executes its functions, was obtained from process cycle efficiency. The chosen processes in the section have a very low efficiency, all of which are less than 0.01 percent for non-urgent papers. The processing of leave application requirements for each process is the focus for improvement since it is in this activity that unnecessary delay takes place. A 22 month queuing time and a 120 minute DTR completion time are given emphasis on. Analysis was done to identify areas of concern. The stream diagnostic chart was utilized as study tool. From it, the group was able to scrutinize the system and the main problem surfaced. Average customer waiting time for the three processes is 22 months and 289 minutes. A 22 month queuing time 1 Business Process Study: Final Paper Human Resources Development Office-UP Diliman constitutes 99.97% of the total waiting time. The group identified three root causes of the problem i.e. bottleneck in the process, delay due to excessive reformatting of DTR, and poor data storage and retrieval. The proponents formulated potential solutions to the above-mentioned problem. The group came up with at least three feasible alternatives for each root cause presented. After which, the alternatives were weighed against established criteria namely, minimal cost to the organization, high probability of success, ease of implementation, short term and long term benefits. The proponents were then able to develop the most feasible, cost-effective, and advantageous alternatives, namely the delegation of task to units, the use of only one record to monitor daily attendance, and the granting of authority to units to handle the DTR files. The group then created an implementation roadmap for each of the top ranked alternatives. The implementation plan includes the recommendation, strategy, the required period for putting the alternatives into operation, the related costs, and the impacts to the organization. The future state phase would only entail HRDO in the task of recording leave credits. Consequently, in the processing of leave application requirements, the queuing time would be reduced from 22 months to 5 minutes and the DTR completion time would diminish from 120 minutes to 5 minutes. Moreover, the process cycle efficiency would considerably increase by more than a thousand percent for all the three processes. 1. PROJECT PROFILE 2 Business Process Study: Final Paper Human Resources Development Office-UP Diliman 1.1 Introduction As the demand for improved productivity in a service-oriented organization escalates due to increasing customer needs and wants, it is therefore imperative that a close and careful scrutiny of all related components in the organization’s system is executed. Thus, it is also important to take the necessary steps for acquiring a practical means to satisfy this demand. Processing of leave applications of the UP Diliman employees is a difficult job. With the many personnel that request for leave, it is definitely important that a fast, efficient, and cost-effective service is provided. Furthermore, with the consequence that the service brings to the whole university, it is thus vital for the service to be properly planned and managed. Meeting the said requirements would entail a thorough analysis of the entire operation. In this regard, the group accomplished a study that presents a systems and procedures approach for achieving process improvements in a service-oriented organization. The chosen company is the Human Resources Development Office of UP Diliman, a non-profit government organization that handles employment-related services. The proponents’ target readers are their IE 33 professor Ms. Michelle Mancenido, their contact person Mrs. Caryl Bolivar, the management of the organization, and those who would be so considerate to spare some time to read and imbibe the contents of their project. 1.2 Objectives 3 Business Process Study: Final Paper Human Resources Development Office-UP Diliman 1.2.1 Academic Objectives ▪ To directly apply learned tools and concepts on systems improvement, specifically business process improvement/re-engineering and information flow management ▪ To acquire an in-depth comprehension of “value” or lean systems and process design ▪ To acquire a methodological approach to designing efficiency and effectiveness into a business process ▪ To acquire a cognition for the non-tangible flows in systems such as information, problems, and requests for service 1.2.2 Project Team Objectives 184.108.40.206 General Objectives ▪ To employ the techniques of Systems and Procedures in the documentation and evaluation of a government service-oriented industry ▪ To correctly identify the problem areas of our project site and to formulate practical solutions to these problems using all the tools learned in Systems and Procedures ▪ To propose realizable changes for our project site 220.127.116.11 Specific Objectives ▪ To identify and eliminate the causes of delay in the processing of leave applications by eliminating all unnecessary activities and addressing the capacity constraints involved in the process ▪ To eliminate all the unnecessary reformatting of the requirements of the leave application process ▪ To design a better system that would make data storage and retrieval more effective and efficient Scope and Limitations ▪ All employed concepts, tools, and methods are acquired from knowledge on Systems and Procedures subject and on past and present Industrial Engineering courses. ▪ The project is limited to the study on Human Resources Development Office – UP Diliman (HRDO – UPD). ▪ The selected area of study is the Benefits Section. It was chosen among other sections since it handles many critical services that entail urgency in process completion. 4 Business Process Study: Final Paper Human Resources Development Office-UP Diliman ▪ The focus of the project is on three processes, namely, filing of leaves, filing of travel leaves, and filing of leave without pay. The aforementioned processes are the most tedious, inefficient, and time-consuming of all work being carried out by the Benefits Section. ▪ The study concerns the improved provision of services to UP Diliman administrative employees only. ▪ Non-numerical data were gathered through interviews, consultations, observations, text and email correspondence, and materials provided by the company. ▪ Quantitative data were obtained from surveys, previous time studies, process surveillance, and records lent by the company. ▪ The freeze hiring and election ban being enforced by the government considerably affect the operations of HRDO as made apparent by the organization’s lack of personnel. There are only three full-time and two part-time employees currently working for the Benefits Section. As in the UP provision, the number of employees for the section should be 9. ▪ Since there is just a limited budget for HRDO, it cannot incur so much expense on exploring possibilities for large-scale developments like major technological advancement. It can only hope for the generosity of the UP administration. 5 2 4 Staff Trainer HRDEMO III, SG 11 HRHROMIIII,GG515 BenefHRMO III, SG 1Scholarship Sectioning Section Sr. Sch. Afr. Ofcr., Sg 19 HRMO V, SG 24 Benefits Division our study focuses only on the Human Resources Dev’t & elopme6t Office Section Section Director II, SG 26 Office of the Director HRMO III,SG 18G 3ersonnel 2 HRMO II, SG 151HRMO II, SG 15 HRMO II, SG 15 (OIC) Division Information Managementring & Evaluation Planning & Research Section Human Resources Planning HRMO V, SG 24 he Human Resources Development Office. The scope of AO III, SG 18W II, SG 13 PRHRMO II, SG 15G 7G 4 Administrative Section Organizational Structure of the Human Resources Dev 2 3 Staff Recruitment and SelecHRMO III, SG 18 HRMO III, SG 18 Figure 1. 5 HRMO II, SG 15 Appointment Section HRMO V, SG 24 Human Resources Recruitment Division BuHuman Resources Development Office-UP Diliman This figure shows the Organizational Structure of t 1.3.1 Organizational Documentation Business Process Study: Final Paper Human Resources Development Office-UP Diliman 1.3.2 Functional Relationship This figure shows relationship of HRDO with the University System. The scope of our study focuses only on the Human Resources in UP Diliman University President University Personnel Board * System Personnel Council (Chairman, UPD HRDO Directory) ** UP Diliman HRDO UP Los Banos UP Visayas HRD UP Manila HRD *** HRD * The System wide Academic/ Administrative Personnel & Fellowship Committees (1995) **UP Diliman HRDO Director to coordinate all AU HRDO’s for the System *** To serve as HRDO for system offices Figure 2. Functional Relationship of HRDO with the University System 7 Training Section Scholarship Section t Office beunfisrsriyvided by law and theords andunselingice Benefits Division Be▪nefits Sectionli▪atio▪s for employeet benefits andions Human Resources Dev’t & 8 Office of the Director Section Section Section Division Planning & Research Information Managementing & Evaluation Functional Chart of the Benefits Section Benefits Section in the Human ResoHuman Resources Planning Figure 3. Administrative Section Section Appointment Section Division Recruitment and Selection BusHuman Resources Development Office-UP Diliman The following chart summarizes the functions of the 1.3.3 Functions of the Benefits Sectionuman Resources Recruitment Business Process Study: Final Paper Human Resources Development Office-UP Diliman 1.4 Project Proponents Project Proponent UP Webmail Address Organization Affiliated With Lyka Bartolay email@example.com UP Circle of Industrial Engineering Majors UP Maradjaw Karadjaw Philippine Institute of Industrial Engineers – UP Diliman Chapter Operations Research Society of the Philippines – UP Diliman Chapter Mary Mae Ramizo firstname.lastname@example.org UP Industrial Engineering Club UP Progressive Responsive Innovative Movement in Engineering Philippine Institute of Industrial Engineers – UP Diliman Chapter Operations Research Society of the Philippines – UP Diliman Chapter Danica Ann danica_ann.romero@ upd.edu.ph UP Industrial Engineering Club Romero UP Progressive Responsive Innovative Movement in Engineering Philippine Institute of Industrial Engineers – UP Diliman Chapter Operations Research Society of the Philippines – UP Diliman Chapter Dacia Marisse dacia_marisse.tardeo@ UP Industrial Engineering Club Tardeo upd.edu.ph UP Progressive Responsive Innovative Movement in Engineering Philippine Institute of Industrial Engineers – UP Diliman Chapter Operations Research Society of the Philippines – UP Diliman Chapter Project Adviser UP Webmail Address Ms. Michelle V. Mancenido email@example.com. 9 Business Process Study: Final Paper Human Resources Development Office-UP Diliman 1.5 Project Methodology The project methodology is summarized in Table 1. It presents the specifications of each step performed for the completion of the study. The table shows the procedures or task done, the methods and tools used, the corresponding output and the time duration to accomplish each specific task. Figure 4. Study Methodology Date Date ID Task Methods/ tools used Output Duration Started Finished Selection of Project 1 November 1, December 3, Site and Approval of Brainstorming, interviews Project Site 2006 2006 3 days the Organization Defining the Scope Application of Systems and Specific Subject of December 4, December 5, 2 and Limitation of theProcedures concepts and 2 days Study 2006 2006 Study tools Setting Business Plant visits, Interviews, Business Objectives, January 5, January 7, 3 Objectives, Strategic SWOT Analysis, 2 days Performance targets 2007 2007 Direction Brainstorming Understanding the Plant Visits, Data Gathering, background, systems Detailed Documentation February 7, February 14, 4 Process SIRPORC, DAD, 6 days and current of current processes 2007 2007 Interviews, Observations processes of the site Review of Existing Data, Value Stream Maps, February 7, February 10, 5 Problem Identification Target Problem Areas 4 days Process Cycle Efficiency, 2007 2007 Brainstorming Stream Diagnostic Charts, Root Cause of Specific Target ProblemFebruary 23, February 25, 6 Ishikawa Diagram, Data 3 days Problem Analysis Cause 2007 2007 Analysis, Brainstorming Formulation of Evaluation Ratings of allbruary 7 Cost Benefit Analysis March 2, 2007 3 days Alternatives alternatives 28,2007 Statement of Setting work standards, Most feasible alternative 8 improving space layout, March 3, 2007 March 5, 2007 3 days Recommendations for implementation forms design Implementation strategy, Map of process improvements, cost, 10 Implementation Plan Cost estimation, March 5, 2007 March 7, 2007 3 days implementation duration, brainstorming impact on organization 10 Business Process Study: Final Paper Human Resources Development Office-UP Diliman 1.6 Rationale of the Study ▪ To meet the project requirements of the course ▪ To accurately apply all concepts, methods, tools learned in Systems and Procedures subject in a real work setting ▪ To establish a good foundation for developing and accomplishing future studies in higher industrial engineering courses ▪ To aid the company in streamlining its processes through broad comprehension of the organizational system, correct identification of problem areas, and detailed proposition on how to carry out the phases for improvement ▪ To set well-defined objectives for the organization through effective strategies and clear-cut systems methodology 1.7 The Business Case The project concerns the improved processing of leave applications to UP Diliman employees. There is an urgent need to streamline the process due to the serious detriment that unnecessary delays bring to the system. These excessive delays are primarily caused by the bottleneck in the process, excessive reformatting of DTR, and poor data storage and retrieval. The average customer waiting time for the three chosen processes is 22 months and 289 minutes. A 22 month queuing time constitutes 99.97% of the total waiting time. Needless to say, this is a really severe problem that needs to be immediately solved. 11 Business Process Study: Final Paper Human Resources Development Office-UP Diliman SYSTEMS DOCUMENTATION 2.1 Company Profile Company Name Human Resources Development Office – UP Diliman Present Location/Contact Numbers UP Institute for Small Scale Industries (Virata Hall) / 981-8500 / 0918-979-5934 Type of Organization Nonprofit Industry Government sector > Human resources Nature of Operations Service Geographic scope of operations UP Diliman Major services: Processing of papers for employee appointments, promotions, salaries and other privileges. Geographic scope of distribution/market Local Highest-ranking person in the chain Office Director- Dr.Angela D. Escoto Estimated number of employees 46 Contact person, position, contact number Caryl Bolivar, OIC – Research and Planning Division / 0918-979-5934 2.2 History The following chart represents the summary of how the Human Resources Development Office was established. Personnel functions were used to be undertaken by the Office of the Non-Academic Personnel Services. The office of the Non-Academic Personnel Services split into two separate offices: Office of Faculty, Research and Extension Services and Office of Personnel Services. The offices were later renamed into the Office of Academic Services (OAS) and the Office of Administrative Personnel Services (OAPS). In July 28, 1982, upon the recommendation of the Management Review Committee, the BOR at its 953ting approved the merging of the OAS and the OAPS into Human Resources Development Office. The merger was headed by a director under the Office of the Vice Chancellor for Administration. The .RDO is comprised of 55 regular positions. At present, HRDO is serving a total of 4,282 personnel for the Diliman Campus and 207 personnel for the system offices. Since its formation, it has provided technical assistance to other autonomous campuses on the development and implementation of uniform standards for procurement, position classification, and compensation and personnel audit to determine manning patterns and ratios and other personnel systems and standards. Figure 5. Chart of Historical Event 3. SETTING THE STRATEGIC DIRECTION 12 Business Process Study: Final Paper Human Resources Development Office-UP Diliman 3.1 EXTERNAL AND INTERNAL ENVIRONMENTAL SCANNING 3.1.1 Business Model of HRDO HRDO is a non-profit organization that utilizes funds provided by the Budget Office of UP Diliman to carry out its operations. Its budget, called the Maintenance, Operating and Other Expenses Budget, is provided to them quarterly. It is also financed by the same budget office to conduct special researches and trainings and pay other expenses it incurs as part of its work. Since it is a subunit of the UP DIliman system, wages and costs related to materials, technology and other inputs are being paid for by UP. 3.1.2 Vision Mission Statements of the Benefits Section of HRDO Mission To strengthen the functions of the section through fast, precise, and reliable delivery of services associated with the granting of benefits to all employees concerned Vision The section envisions itself as a highly capable and organized unit in the Human Resources Development Office that can better look after the employees’ benefits and welfare through a streamlined service provision and increased system efficiency. 3.1.3 SWOT Analysis 13 Business Process Study: Final Paper Human Resources Development Office-UP Diliman Objective of the Benefits Section: To provide fast and efficient delivery of processed leave applications to UP administrative personnel STRENGTHS WEAKNESSES ▪ “Inertia” management during off-eak season ▪ Receptiveness of analysts to changes ▪ Poor communication lines with for improvement of processes administrative units and applicants ▪ Poor data storage and retrieval system ▪ Trained and approachable analysts ▪ Absence of procedures manual (primer) for contractual analysts’ reference ▪ Lack of manpower OPPORTUNITIES THREATS ▪ Prospects of process automation from continuing efforts to find technological ▪ Influence of change in leadership may not support support the existing organizational goals ▪ Potentially open for improvement as a venue for study to many different academic bodies Figure 6. SWOT Diagram 3.1.4 Voice of the Customer The group conducted a survey last February 9, 2007 to gain understanding of the UP employees’ assessment on the services being provided by the HRDO. The survey was done in three colleges, namely, the College of Engineering, College of Social Sciences and Philosophy and College of Science. The 19 respondents came from the administration office, library, and college departments. (For survey results, see Appendix A) Based from the survey, the group was able to infer some insights regarding the Leave Application Process. After interpreting the survey results, the group was able to come up with the following observations: ▪ All respondents apply for leave of absence. ▪ Majority of the respondents apply for leave 4-6 times in a year. Often, the urgencies of things to be accomplished determine the number of leave applications made by an employee. ▪ The sick leave is the most availed leave. (All employees are obliged to avail the mandatory leave on the month of December.) ▪ Incomplete DTR constitutes the bulk of the problems encountered when applying for leave. ▪ Majority of the respondents put emphasis on submitting their DTR on time. 14 Business Process Study: Final Paper Human Resources Development Office-UP Diliman ▪ It usually takes 1 week or more for HRDO to process a leave application. This amount of time is due to an unnecessary delay that needs to be closely investigated ▪ Majority of the respondents gave an AVERAGE rating for the overall performance of HRDO. 3.2 ESTABLISHMENT OF STRATEGIC DIRECTION 3.2.1 Strategic Direction Strategy: Provide faster service through reduced delay in the processing of benefit grants Table 1. Critical to Satisfaction Customer Aspects Critical Points Metrics Specific Targets Expedite the ▪ Processing of leave ▪ Queuing time ▪ No more than 5 processing of application minutes leave requirements (DTR, ▪ Total time for checking of ▪ No more than 1 minute request to Application Form) completeness and minimize correctness of entries in customer waiting application form time ▪ Total time for DTR ▪ No more than 5 completion minutes ▪ Total time for computation of ▪ No more than leave credits 15 minutes ▪ Target Customers: UP Diliman Administrative employees who will apply for leave in the future. ▪ Based from the customer survey the proponents conducted, majority of the respondents cited that it takes one week or more for HRDO to facilitate a request for leave. If the processing of leave application is closely examined, one week or more is excessive delay. And in a customer’s perspective, waiting is non-value adding. The customers’ response to the survey is an unbiased basis for solving the problem since in the first place, they are the ones that need to be constantly pleased. The above- mentioned strategy and customer aspect are aligned with the customers’ demands in order for HRDO to deliver a more efficient and effective service. ▪ The proponents did not put a business process and financial aspect in alignment with their strategy since their company is a non-profit organization. 3.2.2 Choosing the Processes to Improve The Benefits section processes all the employment benefits and privileges of every UP personnel in his/her duration of service in the university. This duration starts 15 Business Process Study: Final Paper Human Resources Development Office-UP Diliman from his/her appointment to his/her retirement. The section has eleven (11) processes to cater the various needs of all 4083personnel. These are: 1. Filing of leaves 2. Travel request 3. Leave without Pay (LWOP) 4. Secondment 5. Tuition Fee Privilege 6. GSIS Enhanced Salary/ Policy loans 7. Change of Name/ Date of Birth 8. Change of Status 9. Pag-ibig/ Philhealth Membership 10. GSIS Maturity Benefits 11. GSIS Membership The three processes in bold letters were selected as focus of study. These three processes were chosen since they are the most inefficient processes within the Benefits Section of HRDO. Furthermore, the three processes involve more activities, activity venues, people interaction and longer cycle time. These are all major areas for improvement. 18.104.22.168 Target Diagram 16 Business Process Study: Final Paper Human Resources Development Office-UP Diliman Leave application <= 1 day Processing of leave application requirements Evaluation of leave application Forwarding of HRDO-endorsed papers to other UP offices Evaluation and signing of HRDO- endorsed papers Releasing of signed application form Figure 7. Target Diagram of the Leave Application Process 22.214.171.124 Characterizing the process The following are the inputs and expected outputs of the sub processes of the Leave Application Process. The boundaries are also defined using the target diagram. Processing of DTR leave Computed/verified leave credits application requirements 17 Business Process Study: Final Paper Human Resources Development Office-UP Diliman Evaluation of Entries in leave Complete and correct entries application application in application form form HRDO- Papers which are ready for evaluation Forwarding of HRDO- endorsed endorsed papers to papers OC/OVCA/OVPA/OVPAA HRDO- Evaluation and signing of HRDO-endorsed papers endorsed (OC/OVCA/OVPA/OVPAA) Approved leave application papers Approved Releasing of signed leave application form Certification of Leave of Application application 18 ) Customer Applicantpioretse NoCreavtilanofApelrontldl Requir-ment - Signature 19 Output ProanApproAvepdlication ocess SIRPORC Diagram Process Formreparatinravtsation - - -heomip-uatcom-g-ip-reocvoarlding Figure 8. inforratonseldavys certificate Requi- App- No. of- reaso-Tfmr edical Input LeaApplication 126.96.36.199 SIRPORC Diagram of the Leave Application Pr BusHuman Resources Development Office-UP Diliman Suppl-Ap-piit-t-OV-C-OPAPAA Business Process Study: Final Paper Human Resources Development Office-UP Diliman 4. PROBLEM ANALYSIS 4.1 CAUSE AND EFFECT ANALYSIS In order to identify the problems encountered by HRDO, the group has done a Stream Diagnosis analysis. From the Stream Diagnosis Analysis, the group was able to associate the critical factors that cause the main problem. Figure 9. Stream diagnostic Chart From the Stream Diagnostic Chart, the group was able to identify the principal problem of HRDO, the factor which has the greatest amount of incoming arrows, which is the Delay/waiting in Processing. The group has also identified three root causes of the problem, which has the most outgoing arrows. The root causes of the problem are bottleneck due to lack of employees, poor data storage and retrieval, and excessive reformatting of Daily Time Records. 32 om those which are not, 33 ANCE LWOP -rgent Filing of Leaves Leave Application Process which are value adding fr .alue Stream Map of Non DTR Completion Figure 10 In order to differentiate the processes within the value stream mapping was done. BusHuman Resources Development Office-UP Diliman 4.2 MEASUREMENT OF PROBLEM OF CURRENT-STATE PERFORM 34 Filing of Non-urgent Travel Leaves LWOP Figure 11. DTR Completion BusHuman Resources Development Office-UP Diliman 35 Filing of Non-urgent Leave without Pay Figure 12. BuHuman Resources Development Office-UP Diliman 36 LWOP Value Stream Map of Urgent Filing of Leaves DTR Figure 13. Completion BusHuman Resources Development Office-UP Diliman 37 Filing of Urgent Travel Leaves LWOP Figure 14. DCompletion BusHuman Resources Development Office-UP Diliman 38 Filing of Urgent Leave without Pay Figure 15. BuHuman Resources Development Office-UP Diliman Business Process Study: Final Paper Human Resources Development Office-UP Diliman 4.2.2 Process Cycle Efficiency PCE = value added time x 100 % total cycle time Table 2. Summary of Process Cycle Efficiencies Filing of Leave Application Travel Leave Leave without Pay Application > 4 but < 29 > 29 Application <30 >30 but <100 Non-Urgent 0.0086% 0.0087% 0.0088% 0.0073% 0.0076% Urgent 41.4% 18.37% 12.43% 46.9% 9.27% The prioritization of a leave application depends on its urgency. If the applicant applying for a leave is an employee with high authority, it will be processed first. The urgency also depends if the employee will travel out of the country or not, and the time the employee will leave. If the employee will leave sooner, it will be processed first. If an application is urgent, the HRDO process the application as soon as possible, for this reason it has higher process cycle efficiency relative to the non-urgent applications. For the non-urgent application leave, the process cycle efficiencies are all very low. 4.2.3 Breakdown of Activities All Other Activities: Reconstruction of 0.0174% DTR: 0.0126% TE TE TE Bottleneck: 99.97% TE Figure 16. Percentage of the Time Duration of the Different Activities in the Leave Application Process The bottleneck constitutes the bulk of the cycle time of the Leave Application Process. This is caused by the capacity constraint due to lack of employees. Next to the bottleneck is the reconstruction of DTR when DTRs are lost due to excessive reformatting of DTR. 39 Business Process Study: Final Paper Human Resources Development Office-UP Diliman 4.3 PROBLEM STATEMENT Average customer waiting time for the three processes is 22 months and 289 minutes. A 22 month queuing time constitutes 99.97% of the total waiting time. 5. IMPROVEMENT 5.1 GENERATION OF ALTERNATIVES ❖ Root Cause 1: Bottleneck in the process. At present the six analyst of HRDO each handling at least 500 personnel, facilitates eleven transactions of the Benefits Section. Due to capacity constraint, the analyst prioritizes first those transactions that are urgent and of great importance, setting aside the other transactions in the queue. As more and more benefits are requested to be processed, the unprocessed document file- up. This causes very long queuing time for the documents which even reach up to 5 years. To address this problem, the following alternatives were generated. ▪ Alternative 1: Delegate task to units. The HRDO’s Benefits Section could delegate some of its task to the units particularly the processing of the leave application. The present practice is that after the form is signed by the college dean, it is submitted to HRDO for the computation of leave credits and approval. By delegating this task to the unit, the unit now becomes responsible for the processing of the leave application. The only task of the HRDO then is to record the approved application. If this system is adapted by the small units like what the delegated units (CSSP & CS) are doing right now, we would remove the bottlenecks in the process and reduce the total cycle time of the leave application process as well as the other processes handled by each analyst. ▪ Alternative 2: Use high-technology/software in computing the leave credits Another reason for the delay in the process is the very tedious computation of leave credits. The analyst still has to compute the leave credits manually, because the software/technology they are using right now is not efficient. It does not provide all the necessary information needed in calculating the leave credits. Moreover, the computers they are using are old modeled and are slow in processing data. HRDO should invest on new computer units and on new technology that will enable faster computation of leave credits. A technology that when accessed will give the total leave credits of the employee, the denomination of the leave credits as well as other information that are relevant to the leave application process. This technology could also be viewed by the personnel over the net for them to be aware of their leave credit status. If this technology/software is not yet available in the 40 Business Process Study: Final Paper Human Resources Development Office-UP Diliman market, HRDO could invest on the research and development of this new technology. This could mean an additional cost but this will be beneficial to them in the long run. ▪ Alternative 3: Hire additional analyst for the Benefits Section. Originally, the Benefits section has nine fulltime analysts. But six of them retired leaving all their workloads to the three remaining analysts. HRDO hired two contractual analysts and distributed some of the units to them. The section chief as well has taken some of the units to reduce the number of personnel assigned to each analyst. But still, capacity constraint exists. According to the previous study conducted by Patrick Alain Azanza on Dec. 16, 1994, the most efficient number of analyst in the Benefits Section is nine. With this basis, the Benefits Section should hire three additional fulltime analysts. By doing so, the ratio of an analyst to the number of personnel handled will be reduced. This in turn will reduce the number of documents that will be processed by each analyst and queuing time will be shortened. Moreover, the analysts will not be rushing transactions all the time just to meet the various needs of the personnel. This will result to more relaxed and less stressed analysts. ▪ Alternative 4: Do nothing. Status quo. ❖ Root Cause 2: Delay due excessive reformatting of DTR. Aside from the time entered in the bundee clock, personnel are required to log-in in the logbook to monitor their daily time-in and time-out. After one month, the data in the logbook are transferred to the DTR form. The excessive reformatting of the DTR consumes a significant fraction of the personnel’s time and entails a waste paper and time and therefore should be eliminated. ▪ Alternative 1: Use only one record for monitoring daily time-in and time-out. To eliminate the wastes generated by excessive reformatting of DTR, the units could use the bandy-clock to record the daily attendance of the personnel. But to make sure that personnel are honest in doing this, policies/rules should be implemented in each unit. Moreover, the bundee clock should also be maintained to make sure that the times printed in the DTR would be readable. ▪ Alternative 2: Use biometrics/ swipe technology to monitor daily attendance. By using the latest technology available in the market today, the need for DTR in monitoring daily attendance will be totally eliminated. Each unit could use biometrics or swipe technology in doing this. By just putting the thumb to the detector or by swiping the ID card, the daily attendance of the personnel will be recorded. And with the use of networking, each time-in and time-out will be recorded 41 Business Process Study: Final Paper Human Resources Development Office-UP Diliman directly in HRDO’s file. With that, there’s no need to submit DTR and the computation of the leave credits will be much easier and faster since the encoding of each entry from the DTR to the analyst’s computer will removed. ▪ Alternative 3: Do nothing. Status quo. ❖ Root Cause 3: Poor data storage and retrieval. Due to the fire that broke out in Quezon Hall last year, the HRDO office has been relocated to the UP ISSI building. And since the relocation is just temporary, and the space is limited, most of HRDO’s files, including the old DTRs, were left in Quezon Hall. This causes difficulty in accessing records. Aside from that, the HRDO doesn’t have efficient storage facility and records management, which sometimes causes damage to the records. Due to the long distance between HRDO’s office and records room, some of the files that are yet to be processed are temporarily placed in the analyst’s table or in a cramped file cabinet. As more and more documents/applications are submitted to them, the pile of documents become higher and larger eating up more and more space in the working area thus HRDO employees have limited space to move. With these problems, the group generated the following alternatives. ▪ Alternative 1: Transfer the authority of handling the DTR files to the units. To reduce the number of records handled by HRDO, they could delegate the task of keeping the DTR records to the units. Every time an employee submits his/her DTR, it will be encoded to the computer by a designated employee in the unit’s admin office. Every first week of the month, the units will be required to submit a copy of the encoded DTR to HRDO. This will serve as the basis for the analysts in computing the leave credits of the employees. This system could also be done if the Benefits Section chooses to delegate the entire leave application process to the small units. As of now, the delegated units (CSSP & CS) are using this system in order to help HRDO. They have adapted this method as a vital part in processing the leave application of their personnel. ▪ Alternative 2: Use records management technology. Records management technology that enable efficient data storage and fast data retrieval are now available in the market. Technologies such as TRIM Context 6, RAID (redundant array of independent disks), Enterprise Content Management and Document Imaging can be used by HRDO to transform its physical records to become electronic ones, without changing the original form and content of the record. By using these technologies, the bulk of the records will be reduced to its minimum number. The technology itself will maintain and dispose the record at the time specified by 42 Business Process Study: Final Paper Human Resources Development Office-UP Diliman the user, thus the cost of maintenance and disposition of these records as well as the storage cost will be reduced. An additional feature of these technologies is that they ca be accessed in the net so that personnel and other interested party could view these records anywhere, anytime. Alongside its benefits, the use of any of these technologies would entail costs. The capital/investment needed for these technologies as well as its maintenance are expensive. In addition, an effective and efficient back-up system is required in these kinds of technologies. ▪ Alternative 3: Hire a competent records manager. Currently, HRDO’s records manager does not have any degree in records management. If HRDO hires a qualified and competent records manager, the maintenance, retrieval, distribution as well as the disposition of records would become more systematic. In this way, HRDO personnel, particularly the Benefits Section analyst’s will not have a hard time searching and accessing needed files. Moreover, with a competent records manager, files that are four decades old can be reviewed and disposed if deemed irrelevant. In this way, the bulk of the files to be maintained will be reduced and a smaller storage area would then suffice. ▪ Alternative 4: Do nothing. Status quo. 5.2 EVALUATION OF ALTERNATIVES 5.2.1 Criteria for Evaluation In choosing the best alternative for each problem, the group evaluated each alternative using five criteria, each having a weight of 20%. The following are the criteria used: 1. Minimal cost to the company (20%) Since HRDO is a non-profit agency with limited budget from the UP System, the cost that will be generated in implementing the solutions should be considered. The cheaper the cost of implementation, the better. 2. High probability of success (20%) The main goal of these alternatives is to solve and minimize the cost brought by the problem. Thus, the probability of an alternative to successfully solve the problem is very essential and should be taken into consideration. Moreover, the management is only willing to take a risk and implement these solutions if the probability of success is high. 3. Ease of implementation (20%) Another factor that makes a solution appealing to the management is the ease of implementation of that solution. Associated with each implementation is cost and time. 43 Business Process Study: Final Paper Human Resources Development Office-UP Diliman Thus, the easier and the faster a solution could be implemented, the better it is for the company. 4. Short term benefits (20%) The alternatives should also be evaluated in terms of its short terms benefits. The alternatives should be evaluated in terms of the benefits it will reap immediately. These benefits are the ones that the organization will experience right away. 5. Long-run advantages (20%) The benefits that the alternatives would bring about in the long run should also be considered. These benefits are important in the continuation of the operations of an organization in the long run. 5.2.2 Evaluation of Alternatives Table 3. Evaluation of Alternatives of Bottleneck Alternatives 1 2 3 4 5 Total Rank Bottleneck in the Process Delegate task to units. 15 20 15 20 20 90 1 Use high technology in computing leave 5 20 10 15 20 70 3 credits. Hire additional fulltime analyst. 10 15 15 15 20 75 2 Do nothing. 20 10 20 10 10 70 4 The first alternative was chosen over the other alternatives because it entails a low cost to the company. Also it provides the highest probability of success when implemented and has more benefits in terms of short and long term goals. The addition of the current number of analyst is a also a good option but its high cost hinders it form becoming the best alternative. Table 4. Evaluation of Alternatives of Excessive Reformatting of DTR Alternatives 1 2 3 4 5 Total Rank Excessive Reformatting of DTR Use only one record to monitor daily 20 15 20 20 15 90 1 attendance. Use biometrics/swipe technology to 10 20 15 20 20 85 2 monitor attendance. Do nothing. 20 10 20 10 10 70 3 For this set of alternatives, the first alternative was chosen as the best. It may not be as high as the second alternative in terms of the probability of success, short term and long term benefits, but it’s very low cost and ease of implementation allowed it to gain the highest rating.
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