Operational management

Summary

Operational management in Finance Department of University of Wales, Newport, this is report on finance department of university of Wales, Newport .The main theme of the report is to critically evaluate the process in the finance department, explain about the organizational chart, the process in the finance department, the problems in finance department and recommendations and solutions to that problems. Based on the interview with Mr. Denies Jones who is the pro-vice chancellor of finance department, we have found some problems in finance department are facing and finally there are some recommendations to the problems using that recommendations the problems can be resolved and we are also recommending implementing the module concepts.

Finance department

The finance department of University of Wales, Newport which is the main department of the university, as this is the main department because there is a huge cash inflow and out flow from the university so the finance department needs to save all the date in their data base .as well as they also need to save the staff payroll and student fee details, assets, expenditures etc.

"The mission of finance department Inspire and enable individuals, organizations and communities to succeed through innovation in high quality learning, research and enterprise"

The finance department supports through the following strategic goals

  • University of Wales Newport will make an operating surplus, improving institutional liquidity and servicing any capital requirements
  • The financial forecast will ensure that financial and non financial goals are congruent
  • The resource allocation models will support greater devolution and transparency
  • Financial procedures will be carried out with the minimum bureaucracy consistent with financial control[1]

Organizational chart of Finance department

Organizational structure of finance department in University of Wales, Newport the head of the finance department Mr. Denies Jones who is the pro vice chancellor and he is the director of the finance department, Mr. Jones is the decision maker of any financial issue's of the university, sometimes he discusses with board of members to make final decision, coming to the organizational chart of finance department consist of subsidiary companies, finance department and internal audit,. Under finance department which comes group financial controller under this group financial controller comes management accounts, student income &credit control, accounts payable & purchase ordering and it system and managements.

External Audit:

The main role of the external audit committee is to report the financial statements, reporting of funds and all this information they need to report it to Audit committee and for the University of Wales, Newport the external audit work is done by the subsidiary companies.

Internal Audit:

The role of internal audit service to provide the university's management with independent assurance on the efficiency, reliability and effectiveness of the internal control system. Specifically, the internal audit service has responsibility to review appraise and report to the board of governors through the audit committee on the following

  • The soundness adequacy and application of financial and other management controls
  • Waste extravagance, poor value for money or other cause

The university's internal audit service operates to formal terms of reference, in accordance with the HEFCW audit code of practice[2]

Management accounts:

The main functions of this management accounts team is financial regulations it is nothing but the roles and responsibilities for finance and finance related within the university and all the staff in the university needs to see this financial regulations. The financial year of the university is from 1 august -31 July the following year so this managements accounts will prepare the financial statements.

Student income and credit control:

The main duties of this department is collecting the student fee payments and maintaining the records of the fees payment about student invoice control as well as student loans.

Accounts payable & purchase ordering

The main duties of this team is maintain the data of the expenditures incurred by the university about the new purchases ,expenses incurred and treasury managemen.

IT systems management:

This department of finance department key department as this department maintains the finance department's server and the whole database of the students and staff and the software which the finance department uses is APTOS and this will also maintains the My learning Essential(MLE) of the student this will activates when the student pay the fee. It will also take care of the finance department server

Based on the interview with Mr. Denies Jones (pro- vice chancellor of finance department) our group has found these are the four major problems which finance department of University of Wales, Newport facing

These are the major problems in the finance department

In sufficient Staff:

This is the major problem in the finance department there is not enough staff. When there is heavy work in the department especially at the peak time like January intake and September intake when the students come to join the university, at this particular time they are taking help of other departments e.g.: HR department members and completing the work. Normally the university will recruit new staff for finance department for every 5 years.

Communication gap:

This is also a major concern for the department as there is huge communication gap between the members of the department and the others department which comes under finance department.

Organizational chart:

There is a problem in the current organizational chart of finance department. There is communication gap between the departments as well as there is no link between these two student income and credit control and IT management and Systems

Quality management:

They are not using any sort of quality management in the finance department process like lean thinking and JIT, Total Quality Management or Six Sigma as there are not using any sort of quality management there is huge waste process and overproduction going on. To reduce this they need to implement the quality management.

Operational Process in Finance department in University of Wale, Newport for the student

For overseas student's

As soon as students register with the university he needs to pay the deposit amount of fee to confirm the registration and 50% of fee he needs to pay at the time of enrolment.

The process of paying the fee at enrolment the student needs to fill the application form there needs to sign with the respective module tutor then he will have a small interview with one of the member of the finance department after his signature then the student can go to the finance department and pay the fee in any format DD / Cheque etc. after the acceptance, the finance department will issue id card to the student.

Operational Process of Finance department in University of Wale, Newport for the student

After student register with the university and then this below process needs to done by the student at the time of enrolment.

Lean thinking and J.I.T

Lean planning and control seeks to eliminate the waste in supply of an operation's products and services and deliver them only when needed.[3]

JIT aims to meet the demand instantly, with perfect quality and no waste

More fully:

  • Improved overall productivity and eliminations of waste
  • Cost-effective production and delivery of only the necessary quantity of parts at the right quality at the right time and place while using a minimum amount of facilities,equipment,materials and human resources.
  • JIT depends on the balance between the suppliers flexibility and the users flexibility
  • It is accomplished through the application of elements which require total employee involvement and team work.
Traditional approach:

This is the normal process which the finance department of University of Wales, Newport is using , the process in university is the student needs collect the enrolment form from business office in allt-yr-yn campus later he need to go to caerleon campus to the data base services department after they review the documents they will issue another document and next the student is ready to pay the fee in the finance department then they will issue the id card for the student with a one year validity, next installment he can pay within one year. So here there is huge time waste, transport, process and overproduction for the student and the finance department.

JIT approach

Instead of using traditional approach if the finance department use the JIT approach that will be beneficial to the student as well as the finance department if they implement this there will not be any sort of time waste, process time will be reduced, there will not be any overproduction and there will not any waiting time. By using this JIT approach the whole process time will be reduced and this will be beneficial to the student

Investigation

A small interview that me and my group made with the finance department head. Mr. Denis Jones who is the pro vice chancellor of the finance department of University of Wales, Newport

These are the questions which our group has interviewed with Mr. Denis Jones

Group Q1: What is the Organization chart of finance department?

Mr. Denis Jones: Given Service charter of finance department organizational chart and briefly explained the whole organizational chart.

Group Q2: operations and functions of finance department?

Mr. Jones: It will be maintain the records of cash inflow and out flow in the university and maintains the data

Group Q3: Who will take the final decision on an issue?

Mr. Jones: vice chancellor Mr. Denis Jones or by the board of members this will depend upon the situation

Group Q4. How is the relationship between the other departments?

Mr. Jones: Healthy relationship-HR department is one of the parts of finance department. These departments take care of payroll of the staff salaries.

Group Q5.How is the environment within the department?

Mr. Jones: Healthy, there is a friendly and quality environment in the departments and with other departments.

Group Q6: Do you use any quality assessment techniques?

Mr. Jones: No, There is no quality assessment techniques implemented.

Group Q7: What are the other committees in the department?

Mr. Jones: Risk Management, Auditing.

Group Q8: What about the payrolls of staff?

Mr. Jones: Payroll is done by H.R department, all the staff wages will be taken care by the H.R department.

Group Q9: What about the budget plans?

Mr. Jones: the budget plans will plan for every five years and there is review for every one year.

Group Q10.What about auditing?

Mr. Jones: There is internal audit service in the university and the external audit is taken care by the subsidiary companies.

Group Q11.What about the construction of new city centre campus?

Mr. Jones: Well the overall cost of the construction is 41 million the council is giving 5 million and the rest of the money loan in LLOYDS TSB bank, and sale the allt-yr-yn campus

Group Q12.What about the repayment of loan?

Mr. Jones. Already paying the loan for newly constructed building and the new loan repayment is five years.

Conclusion

The finance department of University of Wales, Newport over all the department is doing well and they needs to make the changes in the organizational chart which they are using presently as well as they also needs to take the payroll of staff from the H.R department. If the set up a branch in Ally-yr-yn campus this will be helpful to the students as well as to the staff of the university. As well as if the implement the Lean thinking and JIT approach the time waste process will be reduced for the students as well as to the finance department.

Recommendations

  • It should be better if there are regular meetings between the university departments and in the finance departments so that there can't be any communication gap within the departments as well as with other departments.
  • If it setup a branch in ALLT-YR-YN campus it will be better to the students and the staff of ALLT-YR-YN campus. The problem behind this is if there is any query about any finance issue instance fee, for this they need to go to the finance department in caerleon campus and they need to find the solution some time they need to take an appointment. So here there is a huge time waste process for both so if apply lean thinking it will be helpful.
  • Instead of using traditional approach if they implement JIT approach this will be beneficial to the student as well as to the finance department
  • It will better if they take the payroll of staff from the HR department.

Bibliography

  1. Retrieved 12/14, 2009, from http://www3.newport.ac.uk/displayPage.aspx?object_id=11176&type=PAG
  2. Retrieved 12/14, 2009, from http://www3.newport.ac.uk/displayPage.aspx?object_id=11176&type=PAG
  3. Available: https://my.newport.ac.uk/public/Students/Modules/G106655%20-%20MBA%20Operations%20Management/Documents/Week%206%20Lecture%20Notes-470760637.EML/06%20Lean%20Operations%20%26%20J.I.T.pdf/C58EA28C-18C0-4a97-9AF2-036E93DDAFB3/06%20Lean%20Operations%20%26%20J.I.T.pdf?attach=1 [12/12, 2009].
  4. https://my.newport.ac.uk/public/Students/Modules/G106655%20-%20MBA%20Operations%20Management/Documents/Week%206%20Lecture%20Notes-470760637.EML/06%20Lean%20Operations%20%26%20J.I.T.pdf/C58EA28C-18C0-4a97-9AF2-036E93DDAFB3/06%20Lean%20Operations%20%26%20J.I.T.pdf?attach=1 [12/12, 2009].
  1. Retrieved 12/14, 2009, from http://www3.newport.ac.uk/displayPage.aspx?object_id=11176&type=PAG
  2. Retrieved 12/14, 2009, from http://www3.newport.ac.uk/displayPage.aspx?object_id=11176&type=PAG
  3. Available: https://my.newport.ac.uk/public/Students/Modules/G106655%20-%20MBA%20Operations%20Management/Documents/Week%206%20Lecture%20Notes-470760637.EML/06%20Lean%20Operations%20%26%20J.I.T.pdf/C58EA28C-18C0-4a97-9AF2-036E93DDAFB3/06%20Lean%20Operations%20%26%20J.I.T.pdf?attach=1 [12/12, 2009].
  4. Available: https://my.newport.ac.uk/public/Students/Modules/G106655%20-%20MBA%20Operations%20Management/Documents/Week%206%20Lecture%20Notes-470760637.EML/06%20Lean%20Operations%20%26%20J.I.T.pdf/C58EA28C-18C0-4a97-9AF2-036E93DDAFB3/06%20Lean%20Operations%20%26%20J.I.T.pdf?attach=1 [12/12, 2009].

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