Description of Ideas

There may be plenty of ideas for improvement, and each idea could become a project. However, to spend time and energy efficiently, the relevant ideas should be analyzed in greater detail according to their benefits and drawbacks. A description of an idea is shown as an example in Figure 6.2.

The potential aspects must be broken down into transparent value drivers and/or volume drivers to perform the assessments more soundly, which can be done as shown in Figure 6.3. An example based on this approach is shown in Figure 6.4. Finally, all the relevant ideas for each problem or its individual leverages are summarized in Table 6.1.

Determining potential aspects of an idea

Figure 6.3 Determining potential aspects of an idea.

Table 6.1 Ideas Summary Worksheet—Example Case

IDEA

DESCRIPTION

PROBLEM Invoice System REQUIREMENTS

IMPLEMENTATION COST

POTENTIAL

A

Do nothing—Leave system as it is, problems not solved, problems will increase as more suppliers convert to daily deliveries.

No outlay; continue to live with problems

L

L

В

Add personnel to handle increased workload

Two added Accounts Payable personnel

L

L

C

Invoice monthly direct to payables; compare data to packing slips.

Accumulate packing slips, once monthly heavy ОТ

L

L

D

Have system pay invoices based on receiving data, monthly checks with audit.

Revisions to materials system, some ОТ for monthly audit

H

L

E

Pay supplier based on shipping report; deliver directly to assembly on multipurpose unit racks.

Some changes to accounting system, eliminate packing materials, change packaging specs, modify panel racks

M

H

IMPLEMENTATION COST: High (H), Medium (M), Low (L) NOTES: See cost analysis # 121193.

POTENTIAL: High (H), Medium (M), Low (L)

NO. POTENTIAL ASPECTS MEASURE (VALUE AND/OR VOLUME DRIVERS)

CURRENT

TARGET

A

В

C

D

E

1

Processing errors reduced

Errors/month

2

0

2

1

1

0

0

2

Accts. Payable overtime reduced

Ave. hours/week

2

0

2

0

2

1

0

3

Morale improved

Transfer requests

2

0

2

1

2

1

1

4

System streamlined

Minutes/invoice

4

1

4

4

80

1

0

5

Supplier relations improved

Complaints/month

1

0

1

0

1

0

0

6

Cycle time to process reduced

Days to process

2

1

2

2

2

1

<1

7

Payments simplified

Checks/week

5

1

5

5

1/4

1/4

1/2

 
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