Homework Assignment 4

Due in Week 4 and worth 30 points

Discuss one (1) project where you used a problem-solving approach to address what turned out to be common-cause variation, or where you used a process improvement approach to deal with a special cause.

Background

Previously, I have worked for an up and coming social health marketing that provided awareness services to the public via various government sectors (for example CDC, the marines, army and more). A brief understanding of this company, the company had to bid on government contracts (also known as projects) that may last up to several years and were worth up to millions of dollars for the work performed. Majority of the projects consisted a time frame (or few) for the team members to travel to various locations for speaking engagements related to the contract they were assigned to.

At the end of the year, the accounting department and executive management analyzes the cost of each project thus far, with an emphasis on whether the project is meeting the budget as proposed or not. Here, is where we find many issues. As stated before, team members are expected and travel to various places in regards to their project. Within the contract, there is a budget for each team member travel cost including transportation, lodging and a portion of their meals. However it seems as if the travel expenses budgeted for each member was higher than ever expected.

Apart of the accounting department, I analyzed this issue by reviewing the company’s processes of providing the team members funding for their travel. The process was as follows;

·         Transportation & lodging is paid for in advance for the team-mates traveling (as approved by the CEO)

·         Once members of the project return, they provide the accounting department with several of receipts for expenses paid of pocket for reimbursement.

·         Reimbursement checks are disbursed.

The process stated above had many issues. The main issue here is how the reimbursement step is being treated; where the team members provide receipts and receive a check. This process should be more detailed. The team members including the project manager were never aware of a travel budget, thus purchase elaborate and expensive meals with the expectation of being reimbursed %100. Analyzing some of the receipts, many team members were abusing the reimbursement privilege (ordering room service, purchasing the top quality supplies and more).

            I had to create a solution to this matter. The CEO and I explained to the project managers the issue at hand, in which they did not realize, was an issue. We agreed on the following

·         Prior to each travel, the project manager and their team members must be aware of the budget for each individual.

·         Each team member receives a Per Diem in advance that reflects the budget

·         If a team member feels as though the amount budgeted is not enough with reasoning, a requisition form must filled out, and if approved they will be reimbursed after travel.