# Presentation: 301150

## Lean Six Sigma Transaction Process Initiative

- Presented by**Tiffany Taylor, Forest Service**

## Presentation Overview

- LSTP Overview
- Phase 2
- Finance Impacts

- Office of the Chief Financial Officer

## Background

- Part of USDA CFO/CIO initiative for a common desktop solution for work processing
- Transactional Processing (LSTP); Grants Processing (LSGP); Loan Processing (LSLP); and Insurance Processing (LSIP)
- Forest Service currently has lead on TP and GP
- Software Utilized includes Oracle IPM, Kofax, Stellent CM, Microsoft CRM
- Interfaces required: Integrated Acquisition System (IAS); Federal Financial Information System (FFIS); Enterprise Content Manager (ECM); US Treasury Internet Payment Platform (IPP)
- Two phases of development and implementation

- Office of the Chief Financial Officer

## Project Goals

- Streamline and automate manual processes
- Eliminate the movement of paper invoices
- Validate data using standardized system business rules
- Use Workflow to route electronic invoices and perform automatic escalation
- Enhance speed and control of invoice processing activities
- Reduce impact on the field
- Record liabilities in a timely manner
- Pay vendors on time & reduce prompt payment Interest
- Improve customer service and vendor relationships
- Reduce costs per transaction

- Office of the Chief Financial Officer

## Phase I

- LSTP Phase I successfully went live on July 16, 2007.
- In the Phase I solution, all USDA IAS contract invoices are in an electronic format in a central repository prior to payment processing by USDA COD APB.  This mitigated the risks (realized during Hurricane Katrina) associated with paper documents prior to 2007 Hurricane Season
- Phase 1.3 adds workflow functionality at agency level without live interfaces
- Validates agency workflow for Phase II
- FS Pilot using up to 10 Contracting Officers
- Estimated Go-Live late June 2008

- Office of the Chief Financial Officer

## Phase II

- The Phase II solution will leverage the Oracle IPM product to route, approve, and process electronic invoices.
- Features of Phase II which will increase the efficiency of the process include:
- Enabling both IAS and MiscPay contract invoice types
- Interfacing with IAS and FFIS to validate invoice and contract data, reduce data entry, and improve data accuracy;
- Building workflows according to set business rules;
- Allowing for systematic escalations when users fail to take action within a set period of time;
- Utilizing data and reports for performance metrics and accountability.
- The LSTP Executive Sponsors, Chuck Christopherson, Jesse King, and Glenn Haggstrom, signed-off on the LSTP Business Requirements on November 1, 2007.

- Office of the Chief Financial Officer

## Workflow

**Workflow**

- Office of the Chief Financial Officer

## Core Team

- LSTP Core Team was assembled in March 2007
- FS Acquisition Management
- FS Chief Financial Officer: Albuquerque Service Center (ASC) and Financial Management
- FS Business Application Office (BAO) *includes contractor support
- USDA Office Procurement and Property (OPPM) Procurement Systems Division (PSD)
- USDA ACFO Financial Policy and Planning
- USDA OCFO/Controller Operations Division-Administrative Payments Branch (COD-APB)
- USDA Rural Development Enterprise Technologies (ET) *includes contractor support
- USDA Rural Development Customer Support Center (CSC)
- CGI Federal: FFIS O&M support

- Office of the Chief Financial Officer

## Effects on Finance

- Invoices which are not “proper” will be rejected prior to any processing.
- Receipt information will be able to be inputted by the COR/COTR or Requisitioner in LSTP instead of having to have the requisitioner go back into IAS to create a receipt.  Receipts for Misc Pay will also be documented.
- Invoices which are less than $2500 will process immediately without a receipt in order to expedite payment and reduce interest charges.  HOWEVER, receipts will still be required to be entered for every invoice and a sampling system will validate transactions after the fact.
- Misc Pay type invoices will automatically interface payment voucher with FFIS (no manual entry)
- Electronic audit trail will be available to agency and auditors

- Office of the Chief Financial Officer

## Phase II Timeline

- Deploy ECM 1.3 to pilot FS groups Summer 2008
- Deliver Pilot System Fall 2008
- Configure/Train Pilot Users Late Fall 2008
- Implement Pilot for FS Late Fall 2008
- Update design/software as needed Fall 2008-Spring 2009
- Work with USDA agencies on workflow design Fall 2008-Fall 2009
- Deploy remaining FS Spring 2009
- Deploy ECM 1.3 to validate workflows to pilot groups of all other USDA agencies using phased approach Spring 2009-Fall 2009
- Deploy LSTP Phase 2 to all other USDA agencies using phased approach Summer 2009-Spring 2010

- Office of the Chief Financial Officer