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Corporate process improvement is a major factor towards improved efficiency and customer service. An ‘As-Is’ flowchart of the accrual process is supplied, the relationship to the organization’s strategic plan is discussed, the internaland external customers are identified, while potential impact on these customers is noted. The most appropriatequality 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‘Quality Management and Productivity’ introduces a number of quality concepts that are also discussed in relation tothe company’s process improvement.Goals of the OrganizationThe goal of a Total Quality Management organization is to strive for success andexcellence in everything they do beginning with the strategic plan. “Companies clearly have a competitiveadvantage when they can develop an effective strategic plan” (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 processimprovement 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 downloadsis the monthly accrual process. The accrual process consists of identifying, approving, and posting in a company’sexpenditures which must be accrued at fiscal month-end in order to recognize the expenditures in the appropriateaccounting period. This process applies to all base operations, maintenance, administration, capital, and minor fixedassets. If the accruals are not processed in a timely manner, then significant variances in various project andfinancial reports are likely.A reason for untimely accruals may be the lack of a defined process explaining the system requirements andtimelines available for users to process necessary accruals. Business process modeling is used to document theexisting process in place to identify the current workflow or tasks involved in the work procedure and are bestvisualized.The information-gathering phase follows the process identification. Information is gathered from the individuals that

 perform the work and a process profile worksheet is developed. This worksheet identifies the process owners, because it is their buy-in that is paramount to the success of any process change, any trigger events such as inputsand outflows, key controls, and measures of success.The overall process can be described by way of a flowchart for greater visual appeal and ease of understandingaccruals. The process starts with a need for monthly accrual at the fiscal month-end, and ends with the requiredaccruals being posted correctly (Achieving Quality through Continual Improvement, 1999). The as-is processflowchart defines what documents, forms, emails, reports, timeframes, or approvals are involved in the process,where the work is being done and by who, where much of the process time exists, where decisions are being made,and where the controls are in place.Relationship to Organization’s Strategic PlanThe organization’s strategic plan covers the entire organization to helpeveryone move in the same direction of the goal. Some sections of the corporation may need to fine-tune thesedirections in order for them to be more relevant to the business unit, but overall the company is working towards thesame goals. Alignment of the organizational processes that encompass a variety of departments within the companyis an effective way towards goal achievement, which will be achieved by reviewing the accrual process.Internal and External Customer ImpactHigh-performance throughout the entire organization is achieved throughexcellence. All processes performed in an organization have internal or external customers as the result. If any one

 process fails to deliver high-performance results, a customer will surely be impacted.There are internal and external customers that rely on the financial information provided by the corporation. The

 

internal customers consist of employees in the financial analyst field, supply chain, project managers, and thecontrollers. They all rely on the accuracy and timeliness of financial information. The external customers are theshareholders, all customers that have an interest in the company’s product, financial institutions, and the governmentregulators (OPG: Ontario Power Generation, 2006). If the accrual process does not meet GAAP and corporateexpectations then all customers will be affected by inadequate data. And the ill effect of inadequate data is poor corporate decision-making. The most efficient means of ensuring that the process is properly analyzed is to use the

 best quality management tool for the task.Quality Management ToolProcess mapping and analysis is one of the best techniques to use for the complex processof accruals. This technique documents activities “in a detailed, compact, and graphic form in order to promoteunderstanding and improvements” (Value-Driven Operations Management, 2005). The outcome from processmapping is a schematic representation of the process flow which highlights interdependencies, sequence of tasks,and lists the accountable role responsible for performance of task. This process assists managers in visualizing gapsand breaks in links between process tasks in a common language to describe the steps.Value of Process ImprovementA value assessment determines whether the outcome enhances or deters from theefficiency required. The entire process is critically reviewed to determine the level of improvement realized. Thereare cases where processes are necessary but do not provide value and others that are not necessary yet do providevalue. These situations require individual review and factoring into the final decision.In conclusion, TQM provides an organization with a vehicle to achieve excellence, providing that quality isestablished in the company’s strategic plan. This paper has provided substantial information in respect to processimprovement, and quality tools used to ensure quality processes are achieved. A process improvement typicallyneeds to supply value to the organization or process users to be useful. Total management and employee support is

 paramount to the success of process improvement. The Seguro company simulation was reviewed for relevance tothe OPG process improvement and again the concept of management and employee support was critical for TQMsuccess. When TQM becomes a part of the company’s strategy where managers and employees are fully committed,then corporate excellence will follow.ReferencesBurrill, C. W. & Ledolter, J. (1999). Achieving Quality through Continual Improvement.Site retrieved March 12, 2007 from Resource Mgt449, University of Phoenix,https://ecampus.phoenix.edu/secure/resource/resource.aspLondon, C. (2002). Strategic Planning for Business Excellence. Site retrieved March 12,2007 from University of Phoenix websitehttp://www.proquest.umi.com/pqdweb?Melnyk, S.A. (2005). Value-Driven Operations Management: An IntegratedModularApproach. McGraw-Hill/Irwin. Site retrieved March 12, 2007 from ResourceMgt449 at University of Phoenix,https://ecampus.phoenix.edu/secure/resource/resource.asp(2006). OPG: Ontario Power Generation. AboutOPG. Site retrieved March 12, 2007from http://www.opg.com/about/vision.asp