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Receipt Tracking Assistant
Final Presentation
Main Presenter:
Nicholas Tschohl
Project Manager:
Edward Denecke
May 4, 2005
4 May 2005 Receipt Tracking Assistant 2
RTA Team Members
Nick Tschohl
Wayne Yee
Philip Ly
Edward Denecke
Meriel Regedon
Andrej Ciric Mike Schaefer
4 May 2005 Receipt Tracking Assistant 3
Overview
• Problem Introduction• Problem Characteristics• Current Method• RTA Solution• Solution Characteristics• Prototype Characteristics• Prototype Demonstration• Risk Management Plan• Break Even Analysis• Phase I Characteristics• Conclusion
4 May 2005 Receipt Tracking Assistant 4
Problem Introduction
Due to the lack of automation, organizations spend a large amount of time tracking expenditure receipts from traveling employees.
4 May 2005 Receipt Tracking Assistant 5
Electronic Reimbursement
43%
34%23%
Uses
Does Not Use
Plans to Use
Corporate Survey Respondents Using an Electronic Reimbursement System
*Information taken from Runzheimer Reports on Travel Managementhttp://www.travel.runzheimer.com/usercontent/tmn/content/RRTM/Issues/rrtm-2003-10-v23-n5.pdf
4 May 2005 Receipt Tracking Assistant 6
Traveling Statistic
• Americans make more than 405 million long-distance business trips per year
*Information taken from Bureau of Transportation Statisticshttp://www.bts.gov/publications/america_on_the_go/us_business_travel/html/entire.html
4 May 2005 Receipt Tracking Assistant 7
Problem Characteristics
• Time consuming to process• Some receipts may be difficult to obtain• Damaged or lost receipts• Receipts are inconvenient to collect
4 May 2005 Receipt Tracking Assistant 8
Current Method
Employee goes on a trip
Collects receipts (10)
Fill out expense report manually
Employee returnsfrom trip
Organizes receipts
4 May 2005 Receipt Tracking Assistant 9
RTA Solution
Software management system for PC that:
• Easy and convenient to use
• Reduces processing time
• Improves organization
4 May 2005 Receipt Tracking Assistant 10
Goals and Objectives
Create a convenient system for processing and managing employee spending reports
• Allow digital backup of receipts• Create custom expense reports• Track employee spending trends• Compare employee spending
4 May 2005 Receipt Tracking Assistant 11
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
What it will not do:• Enforce employee use• Eliminate paper usage• Eliminate human error• Prevent fraudulent receipts• Reduce receipt collection
4 May 2005 Receipt Tracking Assistant 12
Prototype Characteristics
What our prototype can do:
• Comparative Reports
• Expense Reports
• Login Security
What our prototype simulates:
• OCR Parsing
4 May 2005 Receipt Tracking Assistant 14
Estimated Time Savings
0
7.510
0.53
0
7
0 02.5
20
10.5
0
5
10
15
20
Minutes
Scanningreceipts
Get infofrom
receipts
Sortingreceipts
Faxpreperation
Print outreceipts
Total time
Time Per Method
Current method New Method
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
4 May 2005 Receipt Tracking Assistant 15
Risk Management Plan
1) Unscanable Receipts
2) OCR Errors
3) Integration Conflicts
4) Security Issues
5) High End User Cost
6) Limited Financial Resources
7) Employee Acceptance
8) Limited Primary Market
9) Software Bugs and Database Errors
10) Customer must have computer
Lik
elih
oo
dConsequences
1, 23
4
4 May 2005 Receipt Tracking Assistant 16
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
4 May 2005 Receipt Tracking Assistant 17
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
4 May 2005 Receipt Tracking Assistant 18
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.
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
4 May 2005 Receipt Tracking Assistant 19
Projected Profits
Years Cost Per YearGross Revenue
Per YearProfit Per Year
1st $120,000 $172,000 $52,000
2nd-7th $473,000 $505,000 $102,000
8th+ $355,000 $505,000 $220,000
This chart includes the money received by the loan and the effects over the following seven years of interest.
4 May 2005 Receipt Tracking Assistant 20
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.