Analysis of Systems and Procedures

Results of an experiment

CENERAL APPROACH

The planning function in an organization is the one which requires the highest degree of judgment, and is the most dynamic.

In the planning process decisions must be taken as regards to tasks, personnel and physical facilities or services in order to attain the proposed goal, and the purpose of the analysis of systems and procedures is to help in taking the most profitable decisions.

The analysis of systems and procedure is defined as a systematic study of different systems which is usefull in all the operations of an enterprise, controling and coordinating them.

EXPERIMENT

Due to the rapid expansion of the Provincial Transport Company (Montreal), Management decided to revise gradually its administrative procedures. The first department to be studied was the Treasury Department.

The first step undertaken was to prepare job descriptions, using the « questionnaire » method. In this « questionnaire », particular attention was brought to systems and procedures followed in the accomplishment of the tasks.

The following step was to train supervisors in the techniques of analysis used in the field of clerical work:

1. Fonctional Chart of Organization.

2. Work Distribution Chart.

3. Flow Process Chart.

4. Forms and Reports Improvement Techniques.

5. Files and Filing Methods Study.

6. Layout Chart.

This training program was divided in eight 2 hours courses.

THE COURSES AND THEIR RESULTS

The Work Distribution Chart technique brought interesting results. Many tasks had to be performed in other department: two departments had to be organized on a functionnal basis instead of a line basis, some tasks had to be centralized, some employees had to be transfered to other departments and some tasks had to be dropped.

The Flow Process Chart helped in the reduction of the work required in ticket reimbursements, in the elimination of useless control procedures, verification work, reports, etc., the simplification of reports from special services, the application of better systems and a greater utilization of existing machinery.

The Forms and Reports Improvement Techniques permitted the analysis of 185 forms, 25% of them were found useless, 16 copies of forms were dropped and 30 forms were reduced or printed on a less expensive paper. 85% of the forms studied had to be redesigned. The results were similar with the study of reports.

With the application of Files and Filing Method Study, the content of 20 file drawers were destroyed, 4 systems were improved, etc.

Finally, the Layout Chart brought the attention upon many gaps in the existing systems and suggestions were put forward. Policies of Purchase Department were modified, responsibilities were clearly stated and the fonctions of the Office Manager were revised.

CONCLUSIONS

The analysis of systems and procedures permitted, in the Treasury Department, important changes which increased the efficiency of the department, and pointed out the necessity of having a close and maintained collaboration between line and staff people.