Workiva Inc. · NYSE:WK
Workiva — Investor Presentation (May 2017)
48 slides from Workiva's investor presentation, May 18, 2017
Slide 1: Incorporating Lean Six Sigma into the Internal Audit Process
Incorporating Lean Six Sigma into the Internal Audit Process Ernest Anunciacion, MBA, CIA Senior Product Marketing Manager, Workiva The contents of this presentation are confidential. Copyright © 2017 Workiva.
Slide 2: Agenda
Agenda • Background • Learning Objectives • Six Sigma vs Lean Overview • Tools of the Trade • Audit Management Process Review • Conclusion and Questions
Slide 3: Introduction – Why should I listen?
Introduction – Why should I listen? • Not your typical internal auditor • General Electric – IMLP & Corporate Audit Staff • Ceridian Corporation – Enterprise Risk Management • The Mosaic Company – Risk Advisory & Assurance • Grant Thornton – Business Advisory Services • Workiva – Product Marketing •
Slide 4: Learning Objectives
Learning Objectives • Gain an understanding of the fundamental differences between Six Sigma and Lean principles • Provide an overview of “Lean Thinking” and the most commonly used Lean Six Sigma tools • Identify opportunities to integrate Lean Six Sigma principles within the Audit Management proces
Slide 5: Why do companies fail?
Why do companies fail? The contents of this presentation are confidential. Copyright © 2017 Workiva.
Slide 6: Why Do Companies Fail?
Why Do Companies Fail? "If your firm does not have the ability to learn and improve, it will soon be out of business." - Professor Arthur Hill, Carlson School of Management
Slide 7: Motivation
Motivation 1. All “work” is a process. 2. All processes can be improved. 3. All processes can be improved by making them faster, better, stronger, and cheaper. 4. Faster, better, stronger, and cheaper processes add more value to the world.
Slide 8: Six Sigma vs Lean Overview
\ | 7 Six Sigma vs Lean Overview 7 N |
Slide 9: Six Sigma vs. Lean Six Sigma
Six Sigma vs. Lean Six Sigma Six Sigma Lean Origin Motorola Quality Function Toyota Factory Floor
Slide 10: Six Sigma vs. Lean Six Sigma
Six Sigma vs. Lean Six Sigma Six Sigma Lean Origin Motorola Quality Function Toyota Factory Floor • Data-driven decision making • Simple, error-proof, standardized Philosophy • Leadership development • Involve “GEMBA” in process
Slide 11: Six Sigma vs. Lean Six Sigma
Six Sigma vs. Lean Six Sigma Six Sigma Lean Origin Motorola Quality Function Toyota Factory Floor • Data-driven decision making • Simple, error-proof, standardized Philosophy • Leadership development • Involve “GEMBA” in process Ownership Program Champion Chief Kaizen Leader Green Belts, Black Belts
Slide 12: Six Sigma vs. Lean Six Sigma
Six Sigma vs. Lean Six Sigma Six Sigma Lean Origin Motorola Quality Function Toyota Factory Floor • Data-driven decision making • Simple, error-proof, standardized Philosophy • Leadership development • Involve “GEMBA” in process Ownership Program Champion Chief Kaizen Leader Green Belts, Black Belts
Slide 13: Six Sigma vs. Lean Six Sigma
Six Sigma vs. Lean Six Sigma Six Sigma Lean Origin Motorola Quality Function Toyota Factory Floor • Data-driven decision making • Simple, error-proof, standardized Philosophy • Leadership development • Involve “GEMBA” in process Ownership Program Champion Chief Kaizen Leader Green Belts, Black Belts
Slide 14: Six Sigma vs. Lean Six Sigma
Six Sigma vs. Lean Six Sigma Six Sigma Lean Origin Motorola Quality Function Toyota Factory Floor • Data-driven decision making • Simple, error-proof, standardized Philosophy • Leadership development • Involve “GEMBA” in process Ownership Program Champion Chief Kaizen Leader Green Belts, Black Belts
Slide 15: Lean Six Sigma: Best of Both Worlds – Principles
Best of Both Worlds – Principles + = LEAN SIX SIGMA LEAN SIX Reduce waste by reorganizing a process Reduce defects by solving problems SIGMA Reduce waste and solve problems to become faster and more efficient
Slide 16: Lean Six Sigma & the IPPF Standards
Lean Six Sigma & the IPPF Standards According to the Institute of Internal Auditors (IIA): “…an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, discip
Slide 17: Lean Six Sigma & the IPPF Standards
Lean Six Sigma & the IPPF Standards According to the Institute of Internal Auditors (IIA): “…an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, discip
Slide 18: Lean Thinking
Lean Thinking
Slide 19: “Lean Thinking”
“Lean Thinking” 1. Iden>fy Waste Values: • Simplicity 5. 2. Simplify • Visibility Standardize • Error-Proof • Waste-less • Standard 4. Increase 3. Error- Flow Proof
Slide 20: Find the 8 Types of Waste
Find the 8 Types of Waste 1. Iden>fy • Downtime Waste • Overproduction • Waiting 5. 2. Simplify Standardize • Non-Utilized Talent • Transportation • Inventory • Motion 4. Increase 3. Error- • Extra Processing Flow Proof
Slide 21: The 5S Program
The 5S Program 1. Iden>fy Waste • Sort • Set in Order 5. 2. Simplify Standardize • Shine • Standardize • Sustain 4. Increase 3. Error- Flow Proof
Slide 22: Implement Products & Processes
Implement Products & Processes 1. Iden>fy Waste • Automatic Controls • Automatic Shutdown 5. 2. Simplify • Automatic Warnings Standardize • Human Factors • Selection, Training, Discipline 4. Increase 3. Error- Flow Proof
Slide 23: Focus on Time
Focus on Time 1. Iden>fy Waste • Reduce setup cost • Reduce lot size 5. 2. Simplify • Level the schedule Standardize • Lean the supply chain 4. Increase 3. Error- Flow Proof
Slide 24: Strive for Perfection
Strive for Perfection 1. Iden>fy Waste 5. • Work instructions Standardize 2. Simplify • Respect for people • Measure metrics 4. Increase 3. Error- Flow Proof
Slide 25: Lean Six Sigma Tools
N | 4 Lean Six Sigma !oo!s 7 | N
Slide 26: RACI – Contract Example
RACI – Contract Example R = Responsible A = Accountable C = Consulted I = Informed
Slide 27: RACI – Contract Example
RACI – Contract Example R = Responsible A = Accountable C = Consulted I = Informed Component / Section Preamble Statement of Work Scope & Pricing Billing Legal Terms Conditions Terms and Business Terms Addendum
Slide 28: RACI – Contract Example
RACI – Contract Example R = Responsible A = Accountable C = Consulted I = Informed Component / Sales Legal Accounting Finance Services Operations Section Preamble Statement of Work Scope & Pricing Billing Legal Terms Conditions Terms and Business Terms Addendum
Slide 29: RACI – Contract Example
RACI – Contract Example R = Responsible A = Accountable C = Consulted I = Informed Component / Sales Legal Accounting Finance Services Operations Section Preamble I R Statement of Work Scope & Pricing R I I A C I Billing I R I A Legal Terms I R I Conditions Terms and Business Terms R I C A Addendum
Slide 30: SIPOC Example – Risk Assessment
SIPOC Example – Risk Assessment Suppliers Inputs Process Outputs Customers § Audit Committee § Surveys § See Below § Risk assessment § Audit committee § Management § Interviews § Annual audit plan § Executive § Regulators § Research § Reports management § External auditors § New regulations § Regula
Slide 31: Value Stream Map Example
Value Stream Map Example Rep explains START: Search for Call Transfer call process for Type in Request contact on Account to IRA opening account info What is the Account Setup web Specialist specialist account on on web web Customer NVA 15 min VA 5 min NVA 5 min NVA 15 min VA 15 min Willing to Pay F
Slide 32: Value Stream Map Example
Value Stream Map Example Rep explains START: Search for Call Transfer call process for Type in Request contact on Account to IRA opening account info What is the Account Setup web Specialist specialist account on on web web Customer NVA 15 min VA 5 min NVA 5 min NVA 15 min VA 15 min Willing to Pay F
Slide 33: Cause & Effect – Fishbone Diagram
Cause & Effect – Fishbone Diagram Process Culture Inadequate recruiting Closed door policy Overly competitive atmosphere Lack of quality training programs Why do we have high employee Increased competition Too much manual work turnover? Inappropriate skill sets filling job roles Better benefits exte
Slide 34: The Audit Management Process
The Audit Management Process
Slide 35: Audit Management Lifecycle
Audit Management Lifecycle Cyclical nature of process • Driven by organizational risks • Key challenges & pain points • Continuous improvement
Slide 36: Audit Planning and Scoping
Audit Planning and Scoping Building the Audit Plan • Risk assessments • Planning memos • Project plans • Resource assignments • Audit budget • Audit kick-off presentations
Slide 37: Data Requests and Collection
Data Requests and Collection Managing the Documentation • Review/request documents • Process flow charts • Process narratives • Risk and control matrix • Process walk-throughs • Audit program guide • Test plans
Slide 38: Fieldwork and Testing
Fieldwork and Testing Conducting the Audit Work • Workpapers and review • Supporting evidence • Test of design • Test of effectiveness • Observations • Status update meetings
Slide 39: Conclusion and Reporting
Conclusion and Reporting Closing the Audit • Issues/findings log • Management responses • Final report • Closing meeting • Budget to actuals • Summary memo • Audit surveys
Slide 40: Follow Up and Monitoring
Follow Up and Monitoring Continuing Engagement • Issues/findings management • Balanced scorecards • External audit reports • Audit committee materials • Regulatory reports
Slide 41: What are your challenges?
What are your challenges? The contents of this presentation are confidential. Copyright © 2017 Workiva.
Slide 42: Universal Audit Process Challenges
Universal Audit Process Challenges PLANNING FIELDWORK REPORTING
Slide 43: Universal Audit Process Challenges
Universal Audit Process Challenges PLANNING FIELDWORK REPORTING
Slide 44: Universal Audit Process Challenges
Universal Audit Process Challenges PLANNING FIELDWORK REPORTING
Slide 45: Universal Audit Process Challenges
Universal Audit Process Challenges • Manual effort (comments, notes, roll forward, copy, paste, updates, format, reformat, tick and tie, foot and cross-foot totals, etc.) • Unintended or missed changes • Consistency within and across documents • Babysitting data • Tracking deliverables and status •
Slide 46: Solving Challenges with Technology
Solving Challenges with Technology • Value vs. non-value time (analysis, more audits, process improvement) • Reduce risk (inaccurate findings, delayed timing, turnover) • Repeatable, sustainable, documented process • Improve overall quality, reliability, consistency • Effective control management/au
Slide 47: Conclusion
Conclusion
Slide 48: Learning Objectives
Learning Objectives • Gain an understanding of the fundamental differences between Six Sigma and Lean principles – Eliminate waste from the customer’s perspective to provide value add • Provide an overview of “Lean Thinking” and the most commonly used Lean Six Sigma tools – Embrace the mentality and