Receipt Tracking Assistant
Final Presentation
May 4, 2005
Main Presenter:
Nicholas Tschohl
Project Manager:
Edward Denecke
RTA Team Members
Edward Denecke
Andrej Ciric
Meriel Regedon
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Wayne Yee
Nick Tschohl
Receipt Tracking Assistant
Mike Schaefer
Philip Ly
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Overview
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Problem Introduction
Problem Characteristics
Current Method
RTA Solution
Solution Characteristics
Prototype Characteristics
Prototype Demonstration
Risk Management Plan
Break Even Analysis
Phase I Characteristics
Conclusion
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Problem Introduction
Due to the lack of automation, organizations spend a large amount of
time tracking expenditure receipts from traveling employees.
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Electronic Reimbursement
Corporate Survey Respondents Using an
Electronic Reimbursement System
23%
34%
Uses
Does Not Use
Plans to Use
43%
*Information taken from Runzheimer Reports on Travel Management
http://www.travel.runzheimer.com/usercontent/tmn/content/RRTM/Issues/rrtm-2003-10-v23-n5.pdf
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Traveling Statistic
• Americans make more than 405 million long-distance
business trips per year
*Information taken from Bureau of Transportation Statistics
http://www.bts.gov/publications/america_on_the_go/us_business_travel/html/entire.html
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Problem Characteristics
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Time consuming to process
Some receipts may be difficult to obtain
Damaged or lost receipts
Receipts are inconvenient to collect
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Current Method
Employee
goes on a trip
Collects receipts (10)
Employee returns
from trip
Organizes receipts
Fill out expense
report manually
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RTA Solution
Software management system for PC that:
• Easy and convenient to use
• Reduces processing time
• Improves organization
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Goals and Objectives
Create a convenient system for processing and
managing employee spending reports
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Allow digital backup of receipts
Create custom expense reports
Track employee spending trends
Compare employee spending
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Solution Characteristics
What it will do:
• Decrease processing time
• Improve organization
• Digital backup of receipts
• Use OCR to parse receipt
information
• Automatically organize
receipts for printing
• Automatically create expense
reports
• Track employee spending
• Allow for creation of expense
report templates
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What it will not do:
• Enforce employee use
• Eliminate paper usage
• Eliminate human error
• Prevent fraudulent receipts
• Reduce receipt collection
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Prototype Characteristics
What our prototype can do:
• Comparative Reports
• Expense Reports
• Login Security
What our prototype simulates:
• OCR Parsing
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Functional Component Diagram
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Estimated Time Savings
Time Per Method
Current method
New Method
20
20
15
Minutes 10
7.5
5
0
0
Scanning
receipts
10.5
10
7
0.5
Get info
from
receipts
3
0
0
0
2.5
Sorting
Fax
Print out Total time
receipts preperation receipts
New method will save on average 9.5 minutes per 10 receipt expense report
*Estimated a savings of $1 to $3 on each report processed
*Cost estimates from Bank of America
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Risk Management Plan
Unscanable Receipts
OCR Errors
Integration Conflicts
Security Issues
High End User Cost
Limited Financial Resources
Employee Acceptance
Limited Primary Market
Software Bugs and Database
Errors
10) Customer must have
computer
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Likelihood
1)
2)
3)
4)
5)
6)
7)
8)
9)
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1, 2
Consequences
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Risk Mitigation
Unscanable Receipts
• Likelihood: Medium (3)
• Consequence: Very High (5)
• Mitigation:
• Manual user input of information
Optical Character Recognition (OCR) Errors
• Likelihood: Medium (3)
• Consequence: Very High (5)
• Mitigation:
• Manual input and confirmation screen
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Risk Mitigation
System Integration Conflicts
• Likelihood: Medium (3)
• Consequence: Medium (3)
• Mitigation:
• XML import and export for company
• Provide personnel to train client employees
Sensitive Information/Security Issues
• Likelihood: Very High (5)
• Consequence: Medium (3)
• Mitigation:
• User login security password
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Break Even Analysis
Note: A loan of $700,000 will be taken out to help cover the expenses of the
first year and is to be paid back through the next seven years.
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Cost
Break even
Estimate
1st year
$798,000
3470 units
750 units
2nd - 7th year
$473,000
2057 units
2500 units
8th year
$355,000
1545 units
2500 units
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Projected Profits
This chart includes the money received by the loan and the effects over the
following seven years of interest.
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Years
Cost Per Year
Gross Revenue
Per Year
Profit Per Year
1st
$120,000
$172,000
$52,000
2nd-7th
$473,000
$505,000
$102,000
8th+
$355,000
$505,000
$220,000
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Conclusion
Though our prototype is not complete, we believe that the RTA is a feasible
project.
The RTA will automate parts of the reimbursement process and save up to
50% in time and money spent on each expense report.
This system will save on paperwork and create an organized database.
Valuable comparison information will be provided to the company.
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