Milestone Review
Improvement Phase Complete
Cost Data Integrity Project
December 14, 2007
Three Immediate Improvements
1. Require a reconciliation / comparison to the
General Ledger
2. Require training:
1. Invoices – Entering Expense Entries into the Project
Management System
2. Time Sheets – Entering Time Sheets into the Project
Management System
3. Require Timesheet Approvals by Managers
Matt Evans | www.exinfm.com
2
Two Long Term Solutions
1. Automated comparison of invoices by invoice
number between GL and PMS
2. Automated Email notification to employees who
fail to submit time sheets
Both of these changes are system related, requiring a
business case to justify the change!
Matt Evans | www.exinfm.com
3
Implementation Timeline
Ref
Solution
Implement
Complete
VS.1
Reconcile Vendor Invoices to General Ledger
System Request
2 to 4 months
to complete
VS.3 &
TS.2
Training – Invoice Entry Procedures
Training – Submitting Time Sheets
3/1/08
4/1/08
5/1/08
5/1/08
TS.1
Project Managers approve time sheets
5/1/08
6/1/08
VL.1
Automated Reconciliation Routine between
PMS and General Ledger
System Request
10 to 14 months
to complete
TL.1
Automated Email Notifications when Time
Sheets are Late
System Request
6 to 9 months
to complete
Matt Evans | www.exinfm.com
4
Two Phases to Immediate Solutions
Phase 1: March 2008 through May 2008
Four Major Projects:
All Remaining Projects:
D001196QC02
D002743LB02
D008763VM01
Phase 2: June 2008 through September 2008
15 Projects / 28% of Total Costs
Lead
By
Example
D009441GS02
72% of Total Costs
Leverage on what we’ve already done with the four big projects and get them
compliant early. This will set a strong example for getting the remaining
projects compliant before we start the next fiscal year on 10/1/08.
Matt Evans | www.exinfm.com
5
Monitor and Control
Final project phase will:
• Establish a Control Plan to monitor defect
rates per continuous sampling
• Set initial performance goals and revisit
performance goals once initial goals have
been met
• Include Reaction Plans that map out how to
deal with out of control process situations
• Monitor progress using simple Trend Charts
Matt Evans | www.exinfm.com
6
Project Status
• Project is essentially complete –
approximately 30 work products delivered
(Thought Process Map, Sample Plan, Attribute
MSA, Scatter Plots, Z Test, etc.)
• Major task ahead is to implement solutions
over the next six months
• Impact should be felt within three months –
higher quality of cost data
• Entire portfolio at very high quality levels in
Fiscal Year 2009
Matt Evans | www.exinfm.com
7
Project Performance
Schedule Performance
The project is ahead of the current schedule. We originally expected to be completed the
end of February 2008. Probably can move this up to early February 2008 with a final close
out report in late February 2008.
Reason: Fairly straight forward now that we know what the solutions are.
Cost Performance
The project should come in under-budget since once we got past the Analysis Phase, the
final project steps were fairly straight forward.
Total costs incurred to date (as of December 6, 2007) . . . $ 282,000 (54% spent)
Project Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 522,000
Remaining Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 240,000
Matt Evans | www.exinfm.com
8
Questions and Comments
Matt Evans | www.exinfm.com
9