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Sample BA Report
Sample BA Report
The purpose of this report is to evaluate the process for procuring indirect
materials and services to determine if the current method adequately meets the
requirements of the users and B.U.S. Company. Upon reviewing the data, the
steering committee will decide if we continue with our current process or
consider the solutions recommended in this document.
The volume of purchase requests have steadily increased and the employees are
finding it very difficult to manage. The process of procuring indirect materials
and services consists of 23 – 30 steps with the cost to B.U.S. Company to
process an average purchase order ranging between $150.00 to $220.00 dollars.
This process is paper-based.
B.U.S. company has a vision that includes being the most efficient, automated
company in their industry. They recently adopted a paperless strategy and
would like all departments to implement solutions in the near future. Any
solutions and improvements made within B.U.S Company must meet stakeholder
requirements.
After evaluating these solutions against company goals and objectives the
recommendation contained in this report is that B.U.S. Company implement a
completely automated process for the procurement of indirect materials and
services.
2
Current Situation:
As a direct result of increased sales and the company’s expansion, the volume of
purchase requests placed on this department have steadily developed and the
employees are finding it increasingly difficult to manage.
3
Current Process Flow:
Requester locates
product
Requester takes
paper requisition
to supervisor for
approval
Requester takes Buyer date Buyer faxes
paper requisition stamps request Buyer prints Buyer signs purchase
Yes to Indirect and data enters purchase purchase order to
OK to Materials all information order order supplier
sign? Procurement from requisition
Department for into system
No
processing
Requestor
takes paper
requisition to
higher level
for approval
Buyer updates
Supplier Supplier reviews pricing Supplier signs Buyer receives purchase order in
receives and delivery, makes purchase order suppliers system based on
purchase changes if required and faxes back to confirmation of order confirmation
order buyer purchase order from supplier
Buyer approves
purchase order in Product Supplier Invoice
system, staples Supplier received Product is sends invoice received by
confirmation to ships by B.U.S. delivered to B.U.S. Finance
purchase order product Company to Company Department
and files requester
Process
invoice and
pay supplier
4
Problem Definition:
Over the last quarter, the number of purchase orders for indirect materials and
services has significantly increased. The Indirect Materials and Services
Procurement Department is finding it increasingly difficult to manage the number
of requests.
Goal:
Problem Analysis:
A Cause and Effect Diagram was chosen to identify the sources of the problem
with the current procurement process
Machine People
Procedures
Procurement of
Indirect Materials
& Services
Materials Measurements
Causes:
Procedures – very manual and duplicated; hand written requisitions and data
entry of same information into system by buyer
Machine – use of several different machines; computer, printer, fax and phone
5
Possible Solutions:
- Process automation
- Implementation feasibility
- Time/cost efficiency
- Approval hierarchy policy
Each team member received three (3) cards to vote for the best solution.
The results from the voting revealed the following four solutions:
Although these four (4) solutions have potential, the Priority Worksheet was
selected to evaluate them.
Automate
Procurement 2 3 3 3 11
Process
6
Business and Functional Requirements:
The solution had to meet the following requirements for the requester, approver,
buyer, and supplier.
Solution Worksheet:
The tool selected to assist in demonstrating which solution best satisfied the
requirements of the B.U.S. Company, was the Solution Worksheet:
Solution Worksheet
Possible Elimination Eliminate Eliminate Adheres to
Solutions of Duplicate Manual Pre Printed Internal
Work Processes Forms Approval Policy
Email
Requests & X
PO’s
Automate
Requisition X X X
Process
Automate PO
Process
Automate
Procurement X X X X
Process
7
Proposed Approach:
8
Proposed Process Flow:
Buyer runs report in Buyer converts all Buyer emails Supplier receives
system to retrieve all approved purchase purchase order and
“approved” requests requisitions to order to emails confirmation
purchase orders supplier of order to buyer
Place invoice on
hold
Forward to indirect
materials procurement
dept for resolution
Invoice sent
back to Buyer receives
Finance and resolves
9
Request for Approval:
We are requesting approval to proceed with the proposal to modify our current
procurement system and implement a completely automated process for the
procurement of indirect materials and services.
The following objectives are based on the current project requirements and
preliminary work estimates:
10