Topic
•
Control Charts.


•
Chapter 6 Supplement
Outline number IV.
Presented by:


<Student A name> - Operations Manager,
<Student B name> - Consultant.
 Choose
as Student A, the student whose job opportunity
found in Career HW Exercise II provides the better Case
Situation for the project.
As of: March 24, 2016
Page 1
Career Results - <Student A name>
•
Exercise I – 3 most interesting careers



•
State Career 1
State Career 2
State Career 3
Exercise II – most interesting job opportunity



State company
State location
State position
As of: March 24, 2016
Page 2
Career Results - <Student B name>
•
Exercise I – 3 most interesting careers



•
State Career 1
State Career 2
State Career 3
Exercise II – most interesting job opportunity



State company
State location
State position
As of: March 24, 2016
Page 3
Case Situation
•
•
(Presented by Ops Mgr)
Manager of ten people in a small accounting
firm preparing income tax returns.
Explain why this is a realistic career situation
that you (Student A) may have within the next
five years.


Relates to the job opportunity found in Career HW
Exercise II or,
Relates to previous internship, or other work
experience.
As of: March 24, 2016
Page 4
Primary Challenge
•
(Ops Mgr)
Improve customer service by:
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
Reducing the number IRS audits
Reducing number of returns not completed by
promised date.
 Note: primary
challenge may be something other than
customer service.
As of: March 24, 2016
Page 5
Application
•
(Ops Mgr)
Develop control charts for the critical success
factors of the accounting firm:
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
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
Error in Number of Exemptions Claimed (Form
1040, Line 6d).
Error in Dollar Value of Wages, Salaries, Tips, etc.
(Form 1040, Line 7).
Ratio of Total Itemized Deductions (Sch. A, Line 28)
to Adjusted Gross Income (Form 1040, Line 33).
Number of Days Between Actual and Promised
Completion Dates.
Number of Minutes to Complete Schedule A.
As of: March 24, 2016
Page 6
Improvement in Operations (Consultant)
•
With continued use of control charts and
training:
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
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Number of tax returns with errors detected by the
IRS will decrease from 6.5/week to 1.8/week.
Number of audits conducted by the IRS will decrease
from 3.5/week to 0.7/week.
Number of returns not completed by promised date
will decrease from 8.5/week to 2.2/week.
Note: have at least 3 quantified improvements to transactions.
See Chapter 6Supp outline number II.C for ideas.
As of: March 24, 2016
Page 7
Impact on Human Resources (Consult.)
•
One sample of ten returns taken daily.
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•
Returns with IRS detected errors decrease.

•
Time to review returns and post data to control charts
will take 5 hours/day, or 25 hours/week.
Time spent reworking errors will drop from 29.3
hours/week to 8.1 hours/week.
Number of IRS audits decrease.

Time spent attending audits will drop from 49.0
hours/week to 9.8 hours/week.
Note: have at least 3 quantified impacts.
As of: March 24, 2016
Page 8
Cost Effectiveness (Consultant)
•
Costs
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
•
Benefits
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
•
Develop control charts - $600, Employee training - $800
Time to review and post data in 12 week tax season
$40/hr * (25 hrs/wk) * (12 wks/season) = $12,000
Time saved not reworking IRS detected errors
$40/hr * (21.2 hrs/wk) * (12 wks/season) = $10,152
Time saved not attending IRS audits
$40/hr * (39.2 hrs/wk) * (12 wks/season) = $18,816
Benefits - Costs

$28,968 - $13,400 or $15,568.

Have at least 3 quantified financial factors.
As of: March 24, 2016
Page 9
Check List
 At least 3 quantified Improvements in Ops.
 At least 3 quantified Impacts on HR related to
above Improvements.
 At least 3 quantified financial factors related to
above Improvements and Impacts.
 Smallest font size 20 points.
 Supporting documents external to PowerPoint.
 Short phrases, not long sentences.
As of: March 24, 2016
Page 10
Check List (continued)
 Print 6 slides to a page.
 Maximum 10 slides (excluding Check List).
 Files correctly named and stored on S: drive.
 Copies of Career II Job Opportunity Summaries.
 Signed:
Student A ______________________
Student B ______________________
As of: March 24, 2016
Page 11