Case Studies – Prodocs

To create an effective and efficient automated Inter-Company Break Management reconciliation process.

The team handled ~ 800 plus intercompany breaks globally amounting to ~ $ 8 Bn every month.

1500 man-hours involved in identifying, analyzing, resolving, and explaining inter-company breaks and reconciliation with a deadline of 5 business days.
The process requires downloading data from multiple sources, identifying the common parameter, and then reconciling the data manually.
The existing process was disjointed with inherent issues like;
- the manual process with repetitive tasks.
- 0-15 multiple systems.
- 500 files to be extracted from the aforesaid systems in 8-10 formats.
- Average file size 2-3 GB

Detailed process analysis was undertaken to understand the key steps in the process.
Detailed 60 plus Process Maps & SIPOC were made.
Redundant, repetitive, and non-value steps were identified and documented.
An automated tool (R- Studio; R-Studio is an open-source code platform) was identified to automate the data collation and reconciliation process.
Data logistics for data collation and reconciliation were built into R-Studio.

~ 100+ redundant, repetitive, and non-value steps eliminated
40 GB of data per month of non-relevant and repetitive documentation was eliminated; thereby saving a total of $ 300K of server storage.
Automation of the process resulted in:
- 30% FTE productivity gain
- Faster Book Close
- 33% decrease in ‘long hours’ put in by team.

To establish a streamlined and lean inter-company Settlement Process with reduced turn-around time, higher accuracy, and minimal manual intervention.

The team handled ~ 700 plus payments globally amounting to ~ $ 3 Bn every month and an additional ~ 300 + payments.
amounting to ~ $ 2Bn on quarter-end.
The existing process was extensively manual and time-consuming as balances were extracted from around 10 upstream systems and reconciled manually in Excel, the payment approval form had 14 formats, was manually prepared and 100+ authorizations were sent on emails. 1,000+ journal entries were manually written and uploaded into the GL.

Detailed process analysis was undertaken by way of time and motion study
The study was done at a Key Stroke level.
Each process step was documented by way of Process Maps, SIPOC along with time stamps
Redundant, repetitive, and non-value steps were identified.
An automated customized tool was developed to automate the data collation, reconciliation, and creation of payment forms as well as swift payment instructions.

An automated customized was also used for creating an automated standardized payment form as well as a swift payment instructions template.
Redundant, repetitive, and non-value steps were eliminated.
Automation of the process as well as the elimination of non-value-added activities resulted in:
40% FTE productivity gain in the settlement process using RPA solution and automation.
Improved level of accuracy from 92-98% of the process
Turn around time of the entire process was reduced from 7 to 4 business days

To standardize the streamline of the production of MIS; reduction & rationalization in content and number of MIS produced.

The team prepared and shared ~ 400 MI to 80+ stakeholders on a monthly basis.
The MI needed to be prepared from 26 different sources and in 17 different formats.
The entire process was like a cottage industry having 30+ team members.
The team had zero productivity from BD-5 to BD4 and was working 12-16hrs from BD5 to BD-6 thereby leading to a high-stress level and attrition level of 42%.
The accuracy level was 94% as compared to an expectation of 98%.

Detailed process analysis was undertaken to study each MI in terms of content, presentation, analytical commentary, etc.
The survey was undertaken with key stakeholders on the content, relevance, and improvisation of each MI.
The distribution list of the MI was revalidated.
End-to-end architectural design for each MI was produced from source system to publication.
All Mappings were interlinked to identify commonalities for extraction and publication.
Non-Value-added steps were eliminated.
Additional control points were adopted.
The quality assurance process was set up for the end-to-end process.

The total number of MI was reduced by 22%.
Changes in distribution list by 33%.
Automation of the entire process to the in-house developed tool for data extraction, validation, and R-Studio implementation for automated distribution of MI.
An accuracy level of 97% was achieved.
The automation level of production increased from near zero to 80%.
Overall productivity gained by 40%.
Reduction in team hours from 12-14 hours a day to 8-10 hours.

To create and implement a new Target Operating Model based on Process Base Organization(PBO).

All F&A activities were non-functionally aligned.
Similar activities across the same product and service line were done piecemeal by different teams
Lack of standardization of process resulting in non-value-added activities
15% estimated productivity fat in headcount.
Non-compliances and misinterpretations with internal company policies and procedures.
Delay in response time to any query or information sort by either senior management or regulators.
Unhealthy culture of blame games between various teams.
Lack of consistency and standardization in the SOP.

A detailed Process analysis was undertaken to understand each Process being done across all teams
A time and motion study was undertaken.
Detailed SIPOCs (supplier, input, process, output, and customers) were created along with process maps.
Process steps were documented.
Processes were assigned categories and sub-categories.
redundant, repetitive, and non-value steps were identified and highlighted.
Processes with multiple touch points were identified.
Similar processes being performed in different teams were grouped.

Process-based verticals were created.
Process steps were standardized.
Similar processes were identified and grouped under one team.
Redundant, repetitive, and non-value steps are eliminated.
Multiple touch points in the process were eliminated by way of straight-through processing.
New KPIs and KRIs were introduced.
The creation of the New Target Operating model led to a 23% FTE productivity gain across the various teams.

To automate posting of 22K Journal Entries done by 80 team members across 10 Business Days.

22k journals were manually posted into PeopleSoft on a monthly basis.
82 Journal templates were manually prepared by downloading data from 16 Systems, 100+ emails, and messages left on internal chats or voice mails.
The error rate was less than 1%, however, every error committed had a huge financial, and reputation risk thereby giving bad press to the team.
The team was stretched as 15K of 22K journals were to be posted in 3 days.
Email approval had to be taken from 100+ stakeholders for the aforesaid journal entry processes.

A customized automation tool was developed to create an interface from the various System sources to the GL.
Standardized processes and formats were designed for manual changes in the automated journal process. Changes if any would be made only through the change request format and not through emails or voice messages.
Authorization hierarchies were set in thereby ensuring an automated journal process for posting.