Receipt Tracking Assistant

Final Presentation

Main Presenter:

Nicholas Tschohl

Project Manager:

Edward Denecke

May 4, 2005

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RTA Team Members

Nick Tschohl

Wayne Yee

Philip Ly

Edward Denecke

Meriel Regedon

Andrej Ciric Mike Schaefer

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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

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Problem Introduction

Due to the lack of automation, organizations spend a large amount of time tracking expenditure receipts from traveling employees.

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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

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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

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Problem Characteristics

• Time consuming to process• Some receipts may be difficult to obtain• Damaged or lost receipts• Receipts are inconvenient to collect

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Current Method

Employee goes on a trip

Collects receipts (10)

Fill out expense report manually

Employee returnsfrom trip

Organizes receipts

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RTA Solution

Software management system for PC that:

• Easy and convenient to use

• Reduces processing time

• Improves organization

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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

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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

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Prototype Characteristics

What our prototype can do:

• Comparative Reports

• Expense Reports

• Login Security

What our prototype simulates:

• OCR Parsing

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Functional Component Diagram

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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

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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

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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

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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

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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

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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.

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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.