Kaizen of the Month at Gemba, November 2006

Like many companies, we make a lot of improvements each month at Gemba. We don’t always think to write them down or celebrate them. We will “kaizen the kaizen” by writing them down in an effort to be more mindful of the wonderful kaizen ideas that we all have and implement. In order to celebrate these and stimulate more ideas we will document and post the “kaizen of the month at Gemba” from now on in this blog.

This first one is a great office kaizen example, courtesy of Marcie our Office Manager.

Old Expense Reporting Process: Inefficient and Time-Consuming by Marcie MacRae, 11/2006

Like most Office Managers, I find processing Expense reports to be a daunting task. It can be especially challenging to keep track of the expenses of our consultants who may be traveling from Mukilteo to Mumbai within a day or two. However, I’m determined to streamline this process by minimizing any unnecessary expenses. My goal is to make the expense reporting system more user-friendly for both myself and the consultants. Thanks to my efforts, the process has become less of a hassle for everyone involved.

The Old Process: Before Kaizen

1.)When on a trip, consultants used to collect all of their receipts and then create a detailed expense report upon returning to the office. This process could take them anywhere from 15 minutes to half an hour, especially if a receipt was misplaced. After completing the report, they would submit it to me for review.

2. Going through all the receipts and making sure that they are listed on the expense sheet properly. This step was necessary because some consultants were better than others at keeping receipts, taking 5-10 minutes.

3.Double-checking the expense report heading to make sure it was filled out correctly, taking 3-5 minutes.

4. Entering in all of the credit card charges, taking 5-10 minutes.

5. Creating a check for the reimbursable charges, taking 3-5 minutes.

6. Creating an invoice by listing the amount charged for expenses, taking 3-5 minutes.

7. Taping the receipts onto blank pieces of paper, taking 5 minutes.

8. Copying or scanning those receipts to attach to the invoice and mail, taking 3 minutes.

9. Obtaining approval on the expense report and filing the expense report, taking 2 minutes.

The TOTAL LEAD TIME: 40 minutes to a week.

This old method resulted in delayed reimbursements, delayed invoices, and an overflowing inbox.

Using Kaizen for an Efficient and Streamlined Expense Reporting Process: A New Approach

After much thought and with the help of technology, I have implemented a new method, called Kaizen.

The New Process: Using Kaizen

1. Consultants obtain an envelope before their trip and put all receipts inside, taking approximately 5 minutes.

2. I scan the receipts using NeatReceipts and create an expense report for the invoice, an import file of credit card charges for QuickBooks, and a reimbursable amount for the consultant. This step takes 5-10 minutes.

3. I create an import file and download credit card charges into QuickBooks, which takes only 30 seconds.

4. I create a reimbursable expense report and write a check for the employee, attaching the report to the envelope and closing it with receipts. This step takes 1-2 minutes.

5. Finally, I create the invoice, attach the NeatReceipts report to it, and mail or email it, taking 1-2 minutes. I obtain approval and file the expense report, which takes only 1-2 minutes.

6. I obtain approval and file the expense report, which takes only 1-2 minutes.

A Successful Implementation

This new method has reduced the hands-on time to 14-20 minutes and the lead time by 65%. The cost of the new technology (NeatReceipts) was $199.95, which had a payback time of only two weeks. Additionally, the consultants now have a designated place to put all their receipts, resulting in a more organized process.

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