Operations Mapping & Analysis llc
"Knowing and understanding its basic operations are essential to controlling an organization."
Achieve Internal Control using Operational and Compliance Audit Methods.
Business Functions within an organization are normally divided along lines of a synonymous task being performed by independent departments. The Payroll Function for example may include capturing labor hours on the plant floor, supervisory review and approval, production reporting, cost accounting and treasury processing for check printing and disbursement. All of these separate departments are performing a synonymous task with differing purposes. A formal documentation of the Payroll Function will give management substantive support that the various departments are correctly capturing and reporting all relevant data as that data moves through the system.
The Operations Mapping & Analysis (OM&A) product is a specialized, one time, permanent documentation process using interviews and research to record a company’s business functions. The OM&A process helps determine whether an action that is intended to generate business activity either from basic operations or from an irregular singular occurrence is recognized, recorded and reflected according to standardized criteria.
Pictured above is an example of a flowchart depicting the order entry, delivery and billing cycles for the Revenue Function of a water purification plant. Each OM&A flowchart is hand drawn using templates. Departmental supervisors will initial the flowchart to indicate that it is accurate and complete.
The OM&A operations audit and compliance documentation process is seperated into customery Business Functions that can be taken individually according to the priority of the Function in relation to management understanding and control.
Customary Business Functions are:
- Accounts Payable;
- Accounts Receivable;
- Production Reporting;
- Cost Accounting; and
- Financial Reporting.
These standard functions can be customized according to the nature of your business, separation of responsibility and logistical factors.