StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Root Cause Analysis on Smooth Service Provision - Example

Cite this document
Summary
The paper “Root Cause Analysis on Smooth Service Provision” is a relevant example of an information technology report. This project aims at conducting an assessment of the process direct invoicing takes at Smooth Service Provision (SSP) with an emphasis on developing a viable and cost-effective automated invoice processing system…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER97.7% of users find it useful

Extract of sample "Root Cause Analysis on Smooth Service Provision"

Root Cause Analysis on Smooth Service Provision (SSP) Executive Summary This project aims at conducting an assessment on the process direct invoicing takes at Smooth Service Provision (SSP) with emphasis on developing a viable and cost-effective automated invoice processing system. The project report constitutes an introduction, measurable organizational values (MOV), Solutions, high level option analysis, detailed option analysis, recommendation and finally a conclusion. The main constraint that the process suffers is through time wastage that translates into delays and too many staff working on an invoice which translates into results. The following are the major attributes to these constraints: 1. Delivery and dispatch of invoices via mail – too much time taken and subject to human error, illegibility and low processing speed. 2. Less effective human resource management. 3. The bureaucracy invoices are subjected to as a formal way. 4. Inexperienced staff is more than the experienced staff. To wipe out the existing problems, the report proposes the following short-term and long-term recommendations after a thorough root cause analysis applying strategic theories and models: 1. Immediate implementation of a fax method for invoice delivery and dispatch (short-term). 2. Reducing the time taken in processing an invoice at every stage by every member of staff (short-term). 3. Ensuring that the entire staff is conversant with all the processing steps through reorganizing the entire process and implementing IT solutions. The result will be one analyst fully processing an invoice, accounting for a Return on Investment in 2 months with 99% reduction in the time taken to process an invoice. The expected breakthrough on implementing the recommendations will give SSP a cutting edge over the ever-rising competition through a customer-satisfaction, money-back guarantee. The report assumes that SSP staff will be working for 40 hours in 8, 5-hour days a week, for 48 hours surmounting to 1920 hours. The other assumption made is that SSP through its staff will accept and support the recommended implementation immediately. Finally, it is herein assumed that the manual and the automated systems will run in a pilot method until the complete overhaul of most manual, error-prone stages, with a working figure of 15000 invoices per month. Introduction Smooth Service Provision (SSP) is a company with an employee turnover of about 700 and still on the rising. The company is a Human Resource service provider dealing with, amongst many other services, the processing of direct invoices. Direct invoices are invoices whose orders for purchase cannot be directly traced to them. The Overview of the Business Problem The table below defines the difficulties that Smooth Service Provision (SSP) faces by offering the direct invoice processing service through a manual system. Management Processes 1. An inexperienced and ever-growing by 15% p.a. staff turnover. 2. Unpredictable realization of the Return on Capital (ROI). 3. Loss of client confidence. 4. Lack of viable solutions at hand. 5. Loss of business control. 1. Delayed and unreliable invoice processing. 2. Incorrect estimates and turn-around for processing the invoices. 3. Erroneous or failed allocation of discounts to vendors. 4. Errors in the data verification, analysis and invoice processing. Measurable Organisational Values Measurable organizational values are measurable, of additional value to an organization, be agreeable and verifiable according to Jack (2009). Areas of impact The recommendations will have a great impact on the data entry, verification, and data validation department with a key improvement focusing on the management of the system. The admin department will witness an intense overhaul on the mode of operation. The mail verification, categorization and sorting department stands to as well experience an overhaul in the manner of operation, shifting from the manual verification to automated verification. Primarily, every stakeholder including the vendors will enjoy more services (provision or acquisition) in relatively less time than currently. Potential Value of the IT solution The implementation of the IT solution will guarantee a reduction in the errors experienced throughout the entire process. The new system will offer the following solutions with guaranteed Return on Capital: Management Processes 1. Retention of fewer and competent staff. 2. Predictable Return on Capital (ROI). 3. Client confidence leading to increase in client base. 4. Viable automated solutions at hand. 5. Retention of business control and consequential growth. 1. Convenient and reliable invoice processing. 2. Accurate estimates and in less time for processing the invoices. 3. Accurate allocation of discounts to vendors. 4. Automated data verification, analysis and invoice processing. Time Frame for achieving the MOV The Measure of value for the short-term solutions is expected to be implemented by June 15, 2011 starting May 2, 2011 with the total processing time reducing by 45% when one officer manually takes invoices through every direct invoice processing stage. The long-term full IT solution implementation will be six months after May 2, 2011. Summary of MOV Stage of Processing Responsible Minutes taken per invoice Value (AU$) Invoice Arrival and Storage Automated system Immediate N/A Verify Invoice format and alert Automated system If format not found, feed system with new format Admin staff 15 11.150 Scanning and Database update Automated system Vendor number verification Automated system New Vendor Details IT personnel 10 6 (fixed rate) Invoice data, weekly pay-run and report rollout Automated system Human verification Staff in Registry 2 2.5 Automated archiving Automated system Calculated Slowest Case Process 27 19.650 Calculated Fastest Case Process 2 2.5 Solution Options This section provides for information on the options involved in getting a solution to the problem. Overview of research The methodology involved in the research shall be conducted via observation incorporating vital components of a business process management (BPM) life cycle. A clear map-out of the business model and processes borrowing on competitive angles of each process will be conducted. Microsoft Excel 2010 will be implemented for the Master Vendor Record upgrading the current Microsoft Excel by incorporating more features. Implement a VB.NET framework for direct form data entry into a MySQL database hosted on an FTP server. High-Level Option Analysis Objectives Met Reduced staff due to the automated system needing less human intervention The invoice processing time is reduced by 90% with the stakeholders enjoying more prompt services (vendors) and great job satisfaction (staff) with a Return on Investment of more than 80.3% (SSP). The project achieves a drastic decrease in the errors encountered in the processing. Constraints Met Time: The project implementation is going to take time due to involvement of complex processes. In line with this is the time taken in analysing the process due to lack of enough information caused by SSP staff’s unavailability. Managerial issues: The management finds it hard to identify the specific experienced people in delegation of duties. System: Staff work on designated hours only Hard copy invoices from clients Overhauling the report to clients is not possible immediately SSP will need to conform to government regulation and the law Impact on stakeholders Gardiner in stakeholder management (Gardiner, 2005 as cited in Chinyio 2010 p.201) argues that a stakeholder is any actively involved individual(s), group(s) and organization(s) in a project where their interests fall victim of the project results’ positively and/or negatively. Jim Smart (CEO) will find the process less costly due to more automation and less staff with more invoices being processed in relatively less time. Less errors, quality results and timeliness in payment to vendors will also have an impact on his work. SSP clients will enjoy high quality processing, timely and error-free payments. The vendors will enjoy timely payments, speedy and accurate invoice processing. The Admin Staff will cut down on processing time and deliver promptly with a significant reduction in errors. The validation officer will enjoy less processing output, high productivity due to less time taken in processing. The Validation and Accounts receivable clerks will execute their duties in less time and with less errors hence increasing their job satisfaction and breaking routine. Costs and Return on Investment Item Cost (AU $) 4 TS200V Server Tower, Lenovo (2011), @US$500, Lenovo (2011). 1903.50 3 Ricoh Aficio MP 2000SPF Copier / Printer / Scanner / Fax scanners@$1,775.00, Copyfaxes (2011). 5068.05 Networking equipment valued at $25000 23793.66 2 Programmers for 6 months @ AU$35000 70000 Project Manager with Business Analysis skills for six months at AU$10000 per month 60000 Total 160765.21 The return on Capital based on 15000 invoices will be $439475 ($525000 less $85525). Risks A number of risks are involved in the implementation of the project as well as the realization and eventual achievement of the intended objectives. The members of staff may not have the learning time needed in implementing the new system The availability of IT hardware and software without delay from suppliers or price fluctuation The conducting of training within reasonable time at the projected cost The cooperation of clients and vendors may not be a guarantee Summary and Conclusion SSP is not currently operating on astable business model and is consequently threatened by the loss of client and vendor confidence due to the manual system. Having considered all the factors that have caused SSP to lose footing and loosen grip in the provision of direct invoice processing service, the viability of the manual system is dismal in comparison to the proposed automated system. Recommendation The project has proven beyond reasonable business and professional doubt that SSP’s greatest problem is time wastage due to the manual invoice processing. The project strongly recommends the implementation of the automated system of direct invoice processing. References Marchwata, J. T. (2009). Information Technology Project Management. (3rd ed.). John Wiley & Sons Inc., NJ: Hoboken. Chinyio, E. (2010). Construction Stakeholder Management. John Wiley & Sons Inc., NJ: Hoboken. P.210. Lenovo. 2011.TS200V - Server - Tower - 1 - Pentium - G6950 - 2.8 Ghz - 2 Gb - 250 Gb - 1 Year: Computer $ accessories. http://www.amazon.com/TS200V-Server-Tower-Pentium-G6950/dp/B003DKPMJI/ref=sr_1_1?s=pc&ie=UTF8&qid=1303199674&sr=1-1 Copyfaxes.com. 2011. Ricoh Aficio MP 2000SPF digital copier MP2000SPF MP 2000 SPF Copier. http://www.copyfaxes.com/p-1221/Ricoh-Aficio-MP-2000SPF-Copier--Printer--Scanner--Fax.html Appendix Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(Root Cause Analysis on Smooth Service Provision Report Example | Topics and Well Written Essays - 1750 words, n.d.)
Root Cause Analysis on Smooth Service Provision Report Example | Topics and Well Written Essays - 1750 words. https://studentshare.org/information-technology/2106683-root-cause-analysis-on-smooth-service-provision
(Root Cause Analysis on Smooth Service Provision Report Example | Topics and Well Written Essays - 1750 Words)
Root Cause Analysis on Smooth Service Provision Report Example | Topics and Well Written Essays - 1750 Words. https://studentshare.org/information-technology/2106683-root-cause-analysis-on-smooth-service-provision.
“Root Cause Analysis on Smooth Service Provision Report Example | Topics and Well Written Essays - 1750 Words”. https://studentshare.org/information-technology/2106683-root-cause-analysis-on-smooth-service-provision.
  • Cited: 0 times

CHECK THESE SAMPLES OF Root Cause Analysis on Smooth Service Provision

Fire and Rescue Service Management - Anthropogenic Burning in Cape York

… Generally, the paper 'Fire and Rescue service Management - Anthropogenic Burning in Cape York" is a great example of a management case study.... The Fire and Rescue Commission provides policy and regulatory framework for the Fire and Rescue service agencies and advises the County Executive and County Council.... Generally, the paper 'Fire and Rescue service Management - Anthropogenic Burning in Cape York" is a great example of a management case study....
15 Pages (3750 words) Case Study

Financial Analysis - Lodge

… The paper "Financial analysis - Lodge " is a good example of a finance and accounting assignment.... The analysis of the financial situation is based on the Sovereign Lodge Case Study.... The paper "Financial analysis - Lodge " is a good example of a finance and accounting assignment.... The analysis of the financial situation is based on the Sovereign Lodge Case Study....
7 Pages (1750 words) Assignment

SWOT Analysis of the Hotel

… The paper "SWOT analysis of the Hotel" is a perfect example of a business case study.... The paper "SWOT analysis of the Hotel" is a perfect example of a business case study.... The first aspect we should understand about analyzing performance is the Star report, which is a tool used to analyze hotel performances in terms of occupancy, average daily rate, revenue per available room, supply and demand....
16 Pages (4000 words) Case Study

Diamond Hotel Business Analysis

A brief account of this can be seen from the rating of the Hotel itself and from the service, it gives as per the executive summary.... The client service is perfect, employees and general information flow in the Hotel's system of governance.... … The paper "Diamond Hotel Business analysis" is a perfect example of a business case study.... The paper "Diamond Hotel Business analysis" is a perfect example of a business case study....
14 Pages (3500 words) Case Study

Cause and Effect Analysis of ANL Logistics Company

provision of “zero-defect” service is often the mission and objective of a typical service provider.... provision of “zero-defect” service is often the mission and objective of a typical service provider.... However, service delivery problems are often inevitable within the service industry because of the inimitable characteristics of services (Kau & Loh, 2006).... However, service delivery problems are often inevitable within the service industry because of the inimitable characteristics of services (Kau & Loh, 2006)....
11 Pages (2750 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us