November 17, 2012 Northeast District Meeting Part 2 – Afternoon Session

November 17, 2012

Northeast District Meeting

Part 2 – Afternoon Session

APICS Northeast District MeetingNovember 2012

Binghamton, NH

Two Concurrent Flights

Financial Management Flight

Use of & Lessons Learned in Cloud Based e-mail Management

John Capron, CPIM Mid Hudson Chapter

Please see separate pdf file posted on the Northeast District website.

Top 5 Financial Management Best Practices

Reed DuBow, CPIMNorthern New Jersey Chapter


Reed DuBow, CPIM

APICS Northeast District Meeting November 17, 2012


#5: Audit your financial records yearly (by either an outside accountant or an independent party within the chapter).

Why?

The IRS can come in and audit your form 990/financial statements/books so you want them to be in good standing.

Chapter history – to review good/bad financial years. Possibly detect fraud or improper/erroneous accounting practices.


#4: File your Form 990 yearly (and any Annual Reports with your state).

Why? The IRS can revoke your tax exempt status if you do not file your 990 for three consecutive years. The entity must then file for reinstatement of exemption status. CPA requirement.


#3: Cross-train chapter board members in the finance function.

Why?

If someone gets hit by the proverbial run-away beer truck, who knows how to keep the books?

Fraud detection.


#2: Separation of Duties/Multiple signors on bank accounts.

Why?

See previous slide (beer truck and fraud). Reduces conflict of interest. i.e. NONJ has three signors on its checking account and requires the President,

Treasurer, another VP and originator to sign its check requests.


#1: Document, document, document (and organize files neatly by year).

Why?

Protects chapter in the event of an audit. Gives chapter officers pro forma to use

and update. Reminds people what was done and when.


Questions???

Thank you!

Reed DuBow, CPIM

Controlling the Budget: A best practice on how to set, track & monitor the budget to provide financial transparency to the Chapter Board

Dewey Heichel, CPIM Providence Chapter

Controlling the Budget: A Best Practice on How to Set, Track, & Monitor the Budget to Provide Financial Transparency to the

Chapter BOD.

Dewey Heichel, CPIMController

APICS Worcester County Chapter #22

BS EngineeringMBA

Agenda• Worcester Chapter • Benefit and Need for Controlling the Budget• Tools Used in Budget Process • Setting the Budget• Controls to Assist in Tracking and Monitoring the

Budget– Financial Review Policy

Worcester Chapter #22

•Incorporated in 1960•Platinum level since 1990•150 Members•13 Board Members•Treasurer and Controller

Typical Expense Budgets

President $10,000Programs $4,000Education $3,400Membership $2,000 Marketing $1,200Academic Liason $900Capital $400Secretary $120Treasurer and Controller $100 Company Coordinator $100Vice President $0

Benefit and Need for Setting and Controlling the Budget

• Overall Chapter Financial Health• Road Map – Ties into how Chapter will reach its goals– Identifies areas that need attention and focus

Example: 2011 Education Income = $34,000 2012 Estimated Income = $10,900

Corrective Action:Board has established a subcommittee to look at establishing more educational offerings and increase number of class participants.

•Prepare Tax information– Chart of Accounts should be structured to support easy

extraction of information for taxes • Expenses/income related to service the organization provides• Travel expenses• Supplies expense• Etc.

Benefit and Need for Setting and Controlling the Budget (Cont.)

Tools Used in Budget Process Budget Document

• Custom Excel spreadsheet• Each Board position has a budget page w/accounts listed

Chart of Accounts• Excel spreadsheet• Categories for recording expenses and income

Control Sheet and Control Sheet Assignment Log• Excel spreadsheet• Individually track all expense and income transactions• Expense approval control

Checking and Cash Accounting SoftwareQuiken Home and Business Software• Basic, inexpensive

Excel Screen Shot Showing Budget Tabs

Each Board Position has a budget on its own tab

Budget Document - Front Page Summary

Overall Summary Data 2012-2013

Description Type Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 TotalIncomeTotal Budget 875.00 512.00 812.00 3,150.00 2,800.00 750.00 2,500.00 1,000.00 2,700.00 1,100.00 1,500.00 4,550.00 22,249.00Total Actual 0.00 941.52 465.07 2,442.22 278.97 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4,127.78

========= ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= =========Over/(Under) -875.00 429.52 -346.93 -707.78 -2,521.03 -750.00 -2,500.00 -1,000.00 -2,700.00 -1,100.00 -1,500.00 -4,550.00 -18,121.22

ExpensesTotal Budget 1,388.17 1,269.78 4,045.21 5,695.00 5,930.00 4,218.00 5,244.00 2,966.00 5,223.00 1,554.00 1,234.00 4,089.00 42,856.16Total Actual 1,388.17 1,040.70 2,836.03 4,879.69 100.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 10,244.59

========= ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= =========Over/(Under) 0.00 -229.08 -1,209.18 -815.31 -5,830.00 -4,218.00 -5,244.00 -2,966.00 -5,223.00 -1,554.00 -1,234.00 -4,089.00 -32,611.57

Posted/Partial---> Posted Posted Posted Partial Partial Posted Partial Partial Partial Partial Partial Partial

Accumulated Totals 2012-2013Description Type Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12IncomeBudget Cum 875.00 1,387.00 2,199.00 5,349.00 8,149.00 8,899.00 11,399.00 12,399.00 15,099.00 16,199.00 17,699.00 22,249.00Actual Cum 0.00 941.52 1,406.59 3,848.81 4,127.78 0.00ExpensesBudget Cum 1,388.17 2,657.95 6,703.16 12,398.16 18,328.16 22,546.16 27,790.16 30,756.16 35,979.16 37,533.16 38,767.16 42,856.16Actual Cum 1,388.17 2,428.87 5,264.90 10,144.59 10,244.59

Cash Flow 2012-2013 56,468.73

Description Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 TotalStarting Bank Bal 58,575.59 57,187.42 57,088.24 54,717.28Planned Income 875.00 512.00 812.00 3,150.00 2,800.00 750.00 2,500.00 1,000.00 2,700.00 1,100.00 1,500.00 4,550.00 22,249.00Planned Expenses 1,388.17 1,269.78 4,045.21 5,695.00 5,930.00 4,218.00 5,244.00 2,966.00 5,223.00 1,554.00 1,234.00 4,089.00 42,856.16

Actual Income 941.52 465.07 2,442.22 278.97 4,127.78Actual Expenses 1,388.17 1,040.70 2,836.03 4,879.69 100.00 10,244.59

Cumulative J A S O N D J F M A M J Total CashPlanned Cash Flow -513.17 -1,270.95 -4,504.16 -7,049.16 -10,179.16 -13,647.16 -16,391.16 -18,357.16 -20,880.16 -21,334.16 -21,068.16 -20,607.16 Flow Year EndReal Cash Flow -1,388.17 -1,487.35 -3,858.31 -6,295.78 -6,116.81 PROJECTED Cash Flow -9,584.81 -12,328.81 -14,294.81 -16,817.81 -17,271.81 -17,005.81 -16,544.81 -16,544.81

APICS BOD Tom Barry Sheet B1Worcester County Chapter #22 Address 44 Old North Rd

Budget for 2012-2013 year Hudson, Ma 01749 Presidents Account As Of: 11/28/2012

Account Description Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Total10 Income

Total Budget 0.00 0.00 0.00 0.00 0.00 450.00 0.00 0.00 0.00 0.00 0.00 450.00 900.00Total Actual 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

========= ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= =========Over / (Under) 0.00 0.00 0.00 0.00 0.00 -450.00 0.00 0.00 0.00 0.00 0.00 -450.00 -900.00

10 ExpensesTotal Budget 1152.91 600.61 623.02 2000.00 100.00 2855.00 350.00 100.00 1255.00 100.00 100.00 2485.00 11721.54Total Actual 1152.91 600.61 422.59 1980.87 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4156.98

========= ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= ========= =========Over / (Under) 0.00 0.00 -200.43 -19.13 -100.00 -2855.00 -350.00 -100.00 -1255.00 -100.00 -100.00 -2485.00 -7564.56

10 Detail

10 -A Installation Inc 450.00 450.00 900.00

Actual Income-> 0.00

10 -C Gifts & Grants Inc 0.00

Actual Income-> 0.00

10 -1 Printing Exp 0.00

Actual Expenses-> 0.00

10 -2 Postage Exp 141.00 20.00 20.00 20.00 201.00

Actual Expenses-> 141.00 141.00

10 -3 Regional/Travel Exp 899.00 376.80 400.00 1800.00 1085.00 1085.00 1085.00 6730.80

Actual Expenses-> 899.00 376.80 319.57 1729.05 3324.42

10 -4 Donations Exp 60.00 300.00 250.00 610.00


10 -5 BOD Meetings Exp 99.29 82.81 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 982.10

Actual Expenses-> 99.29 82.81 222.03 404.13

10 -6 Install./Christmas MeetingExp 1450.00 1400.00 2850.00


10 -7 Supplies Exp 50.00 50.00


10 -8 Committee Meeting Exp 43.02 50.00 50.00 143.02


10 -9 Misc. Exp 154.62 154.62

Actual Expenses-> 154.62 29.79 184.41

Budget DocumentExample of an Board Member’s Budget

Account Name Type Account Name Type Account Name Type Account Name Type10 President's account sum 40 Program Account Sum 70 Certification Account Sum 95 Technical Services Sum10-A Installation/Christmas Inc 40-A Programs Inc. 70-1 Printing Exp 95-1 Printing Exp10-B Seminar I Inc 40-1 Printing Exp 70-2 Postage Exp 95-2 Postage Exp10-C Gifts & Grants Inc 40-2 Postage Exp 70-3 Awards Exp 95-5 Advertising Exp10-1 Printing Exp 40-3 Speaker Expense Exp 70-5 Guest Didnner Exp 95-7 Supplies Exp10-2 Postage Exp 40-4 Speaker Fee Exp * 70-9 Misc. Exp 95-8 Committee Meeting Exp10-3 Regional Exp 40-5 Telephone Exp 95-9 Misc. Exp10-4 Donation Exp 40-6 Monthly Meeting Exp 95-10 Web. Services Exp10-5 BOD Meetings Exp 40-8 Committee Meeting Exp10-6 Installation/Christmas Exp 40-9 Misc. Exp 80 Membership Sum10-7 Supplies Exp 80-A Membership Rebate Inc 100 University/CSCP Sum10-8 Committee Mtg. Exp 80-1 Printing Exp 100-A Course Fees Sum10-9 Misc. Exp 80-2 Postage Exp 100-1 Printing Exp

50 Education & Research Account Sum 80-3 Donated Membership Exp 100-2 Postage Exp15 President's Capital Account Sum 50-A Course Fees Inc 80-5 Membership Drive Exp 110-4 Instructor Fees Exp15-A Sale of Equipment Inc. 50-B Misc. Receipts Inc 80-6 Un-Employed mbr. Cost Exp 100-7 Supplies Exp15-1 Visual Equipment Exp 50-1 Printing Exp 80-7 Supplies Exp 100-9 Misc. Exp15-2 Communication's Equipment Exp 50-2 Postage Exp 80-8 Committee Meeting Exp15-3 Computer Equipment Exp 50-3 Instructor Expenses Exp 80-9 Misc. Exp 110 Student Coordinator Sum15-4 Computer Software Exp 50-4 Instructor Fees Exp * 110-1 Printing Exp15-8 Office Equipment Exp 50-5 Mailing List Exp 110-2 Postage Exp15-9 Misc. Equipment Exp 50-6 Facilities Exp 85 Associate Account Sum 110-3 Advertising Exp

50-7 Supplies & Library Materials Exp 85-A Dues Inc. 110-4 Donated Supplies/Funding Exp20 Treasurer/Controller's Account Sum 50-8 Committee Meeting Exp 85-1 Printing Exp 110-5 Awards Exp20-A Found Money Inc. 50-9 Misc. Exp 85-2 Postage Exp 110-6 Student Dinners Exp20-A Interest Rec'd. Inc. 85-3 Donated Membership Exp 110-7 Academic Adv. Membership Exp20-1 Printing Exp 85-5 Membership Drive Exp 110-8 Committee Mereting Exp20-2 Postage Exp 60 Spring/Lean Seminar Account Sum 85-6 Un-Employed mbr. Cost Exp 110-9 Misc. Exp20-6 Telephone Exp 60-A Seminar Fees Inc 85-7 Supplies Exp20-8 Bank Service Charge Exp 60-1 Printing Exp 85-8 Committee Meeting Exp20-9 Misc. Exp 60-2 Postage Exp 85-9 Misc. Exp 120 Company Coordinator Sum

60-3 Sepaker Expenses Exp 120-1 Printing Exp30 Secretary's Account Sum 60-4 Speaker fees Exp * 120-2 Postage Exp30-1 Printing Exp 60-5 Mailing List Exp 120-8 Committee Meeting Exp20-2 Postage Exp 60-6 Facilities Exp 90 Publications Sum 120-9 Misc. Exp30-7 Supplies Exp 60-8 Committee Meeting Exp 90-1 Printing Exp30-9 Misc. Exp 60-9 Misc. Exp 90-2 Postage Exp

90-8 Committee Meeting Exp90-9 Misc. Exp

* = 1099 Reporting Required Rev. 01 9-13-93 Tax Items AddedRev. 02 3-1-95 Associate Added Special AccountsRev. 03 6-1-95 Capital Added and 296 Post Office Account - now closed Spec

Assoc. Changed 200 Transfer Account SpecRev. 04 7-26-96 Publicity VP Cash Cash SpecRev. 05 8-22-02 Changed Publicityto Technical Services

Chart of Accounts Spreadsheet – This is on a Tab in the Control Sheet Workbook

106 Accounts

Control Sheet

• Excel spreadsheet• Individually tracks all expense and income

transactions – paper trail and approval process.• Similar to an expense report

x

AccountCode Amount10-3 $125.35

Please Attach receipts and provide Account Codes(s) $125.35

Date: 10/15/2012

Check Reimbursement Needed? Yes x

Place/Person Purchased from, or Payment received from, and address.

Name:Street: City: State & Zip:

Treasurer to fill in this section

Control Sheet

Requisitioner: Jim Pope

Date

Hotel for District Meeting

8458

Approved byCheck #

NH 03063

2 Somerset ParkwayCrown Plaza Hotel

APICS Worcester County Chapter #22

CS No.

Description

Nashua

Revenue

Expense - Debit Card

Expense - Other

Date9/15/2012

If you would like your reimbursement check sent to an address other than the address on file, please provide the alternate address on the cs sheet.

• Originator - Fills out Control Sheet and E-mails to Controller

• Controller – Compares expense/revenue described on CS sheet to budget– Approves the transaction – Issues a control number – Logs the expense/revenue in the Control Sheet Log and in budget– Emails Sheet to Originator and Treasurer

• Treasurer – Processes the Control Sheet and receipt (if an expense) – If debit card, matches receipt to bank statement records – Records in Quicken– Makes payment or deposit as required

• CS records must match all transactions listed on the bank statement.

Control Sheet Processing

Screen Shot Showing Tabs Containing Instructions for Using Control Sheet

Chart of Accounts

Instructions for CS Sheet Use

CS Sheet Example

Example of Control Sheet Log

Controllers Report Control Sheet Log2012 Board Meeting CS Transactions for Period 7/12/12 to 8/31/12

Transaction Date

Issue Date Acct

Debit Card Used CS # Payee CS Originator Description Amount Type

7/12/12 7/24/12 95-9 n 8400 Fred Mezynski Fred Mezynski labels 6.32 Expense7/18/12 7/24/12 10-9 y 8401 The Hartford Tom Barry Liability Insurance 35.00 Expense7/14/12 7/25/12 10-3 y 8402 APICS Tom Barry National Meeting Reg 1,049.00 Expense

7/18/12 7/25/12 10-3 y 8403Worc County /Apics Tom Barry National Meeting Reg 1,049.00 Credit

7/9/12 8/1/12 30-9 n 8404 Janet Besset Janet Besset Ink 82.98 Expense7/18/12 8/1/12 10-3 y 8405 Apics Tom Barry Int Conf Re-Reg. 899.00 Expense7/27/12 8/1/12 40-9 y 8406 APICS Tom Barry PDM Raffle Gifts 58.29 Expense7/17/12 8/1/12 10-9 y 8407 APICS Tom Barry Leadership Books 119.62 Expense7/31/12 8/1/12 40-9 y 8408 Office Max Tom Barry Badges 33.27 Expense7/30/12 8/1/12 40-9 y 8409 Walmart Tom Barry Wallet Card Stock 7.41 Expense7/26/12 8/1/12 10-5 y 8410 Cio Bella Tom Barry Board Meeting Food 99.29 Expense8/13/12 8/20/12 10-2 y 8411 Worcester MPO Tom Barry PO Box Keys # 523 21.00 Expense8/13/12 8/20/12 10-2 y 8412 Worcester MPO Tom Barry PO Box # 523 120.00 Expense8/13/12 8/20/12 95-1 y 8413 Office Max Tom Barry Laminate PDM Schedule 10.52 Expense8/15/12 8/20/12 20-9 y 8414 Georges Pizza Dewey Heichel Pizza - Transition Meeting 30.17 Expense8/15/12 8/20/12 20-9 y 8415 Georges Pizza Dewey Heichel Pizza Tip - Trans. Meeting 5.00 Expense8/22/12 8/23/12 20-9 n 8416 Sue Motta Sue Motta Mailing Envelope 1.49 Expense8/22/12 8/23/12 20-2 n 8416 Sue Motta Sue Motta Postage 2.12 Expense

7/25/12 8/23/12 20-9 n 8417 Mary SkorvanekMary

Skorvanek Ink Cartridge 46.99 Expense

8/16/12 8/23/12 20-9 n 8418 Doreen HolmesDoreen Holmes Misc. Office Supplies 37.25 Expense

Checking and Cash Accounting Software

Quicken Home and Business Software

Reports:•Does not have general ledger function•Checking and Cash Account Balances•Checking Account Reconciliation Summary •Cleared Transaction Detail Report•Chart Account Summaries

Example of Quicken Output Showing CS Sheet and Account Numbers

Setting the Budget• Controller sends each Board member having budgetary responsibility their

previous years budget sheet (in Excel) with only the actuals showing.

• The Board members fill in their new budgets based on their next years goals.

• The Budget sheet is e-mailed back to the Controller who pastes it into the new budget workbook.

• The final budget is emailed to all board members, then voted on for acceptance during the next regularly scheduled board meeting.

Account Description Type Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Total

40 Detail

40 -A Program 0.00

Actual Income-> 103.29 405.00 650.70 397.94 570.00 639.21 615.18 655.47 4036.79

Cash Income @ Mtg. 0.00

0.00

40 -1 Printing 0.00

Actual Expenses-> 20.47 37.56 103.62 23.91 12.00 197.56

40 -2 Postage 0.00

Actual Expenses-> 44.88 88.28 1.28 92.80 98.58 51.20 51.20 428.22

40 -3 Speaker Expense 0.00


40 -4 Speaker Fees 0.00


40 -5 Telephone 0.00


40 -6 Monthly Meeting 0.00

Actual Expenses-> 678.50 728.50 703.50 1153.50 693.00 928.50 998.00 5883.50

40 -7 Door Prizes 0.00


40 -8 Committee Meeting 0.00


40 -9 Misc. 0.00

Actual Expenses-> 22.83 50.00 91.39 28.49 196.63 55.97 100.00 203.44 748.75

•Chapter Financial Review Policy

Controls to Assist in Tracking and Monitoring the Budget

APIC’S Worcester County Chapter #22 Revision 2 Financial Review Policy Date: 11/13/12 To ensure accuracy and transparency in all financial matters concerning the collection and payment of chapter funds, the following activities will be performed:

1. A yearly budget will be assembled by the Controller in accordance with the chapter by-laws. The budget will be assembled with input from the board members. The board will vote to accept the budget.

2. A CS sheet must be submitted for all financial transactions, income or expense. Any board member may submit a CS sheet. The Controller must approve the expenditure, assign a CS number, and forward it to the treasurer before any funds are issued. In absence of the controller or treasurer, the president and/or other appointed board member will perform this duty. The person approving the CS sheet transaction cannot be the same person issuing the check. It is important that two people are involved in each transaction to aide in fraud prevention.

3. The Controller will report on the budget during the monthly meeting. Any expenditure over $100 that is not budgeted will be brought up for review by the board for acceptance. Any expenditure not previously approved can be turned down by the board, at which time it will be considered a personal expense, payable by the person who incurred the expense. If the expense was made using a Chapter debit card, the person will reimburse the Chapter.

4. During the monthly board meetings, the Board will review the chapter’s financial transactions. Acceptance of the transactions will be confirmed by acceptance of the treasurers and controllers reports. Only the current reporting period’s transaction records will be reviewed unless there is an outstanding issue that requires resolution.

Financial reports to be supplied during the Monthly meeting are: Treasurer – a. Checking Account Reconciliation Summary b. Cleared Transaction Detail Report c. Un-cleared Transaction Detail d. Present the latest Bank Statement showing the account balance. Controller - a. Updated Budget Summary b. Copy of the CS log showing transactions for the latest reporting period.

5. Two audits of the chapter’s financial records and procedures will take place each year in accordance with the chapter’s by-laws.

6. Education Income and Expenses For Chapter operated educational courses and seminars, The payment policy is participants

shall prepay before the course commences. The VP of Education will report monthly the financial status of planned and current courses.

This will include a list of attendees and payment status. In the absence of a VP of Education, the President will assume this duty. The President may

assign or appoint this task to another board or committee member.

To ensure accuracy and transparency in all financial matters concerning the collection and payment of chapter funds, the following activities will be performed:

1.A yearly budget will be assembled by the Controller in accordance with the chapter by-laws. The budget will be assembled with input from the board members. The board will vote to accept the budget.

2.A CS sheet must be submitted for all financial transactions, income or expense. Any board member may submit a CS sheet. The Controller must approve the expenditure, assign a CS number, and forward it to the treasurer before any funds are issued. In absence of the controller or treasurer, the president and/or other appointed board member will perform this duty. The person approving the CS sheet transaction cannot be the same person issuing the check. It is important that two people are involved in each transaction to aide in fraud prevention.

3. The Controller will report on the budget during the monthly meeting. Any expenditure over $100 that is not budgeted will be brought up for review by the board for acceptance. Any expenditure not previously approved can be turned down by the board, at which time it will be considered a personal expense, payable by the person who incurred the expense. If the expense was made using a Chapter debit card, the person will reimburse the Chapter.

4. During the monthly board meetings, the Board will review the chapter’s financial transactions. Acceptance of the transactions will be confirmed by acceptance of the treasurers and controllers reports. Only the current reporting period’s transaction records will be reviewed unless there is an outstanding issue that requires resolution.

Financial reports to be supplied during the Monthly meeting are:Treasurer – a. Checking Account Reconciliation Summary

b. Cleared Transaction Detail Reportc. Un-cleared Transaction Detaild. Present the latest Bank Statement showing the account balance.

Controller - a. Updated Budget Summaryb. Copy of the CS log showing transactions for the latest reporting period.

5. Two audits of the chapter’s financial records and procedures will take place each year in accordance with the chapter’s by-laws.

6. Education Income and Expenses For Chapter operated educational courses and seminars, The payment policy is

participants shall prepay before the course commences. The VP of Education will report monthly the financial status of planned and

current courses. This will include a list of attendees and payment status. In the absence of a VP of Education, the President will assume this duty. The

President may assign or appoint this task to another board or committee member.

Dewey Heichel at DNHeichel @ gmail.com

For a copy of the budget or control sheet Excel templates, please contact:

The Quote Master: A best practice of a tool created for all quoting, orders and administration

Dennis Goldensohn & Sudhir SachdevNYI-LI Chapter

QUOTE MASTER

LEANING OUT the CRM PROCESS for APICS

CHAPTERS

Dennis GoldensohnAPICS New York City-Long

Island Chapter

November 17, 201242

What can you expect to take away from this presentation?

Understand what the “Four Rules” of Lean are

Understand that the problem with data accuracy and availability in not a “PEOPLE” thing, but a process issue

What is a Quote Master and where is it used

How using a simple Excel Quote Master Template can improve your Customer Relationship Management-CRM and eliminate waste in this process

Cloud Storage: Centralize data in one place: Drop Box, Box. Net, Sky Drive, Google Docs

Online and FREE use of Microsoft Office: Word, Excel, and Power Point via Cloudon and Onlive cloud based thin client

Introduce “Workflow Management” between internal and external customers

And the need for a comprehensive “Process-Procedure” using “Standard Work” applications and procedures

43

What are the Four Rules of Lean?

1.Structure every activity

2.Clearly connect every customer and supplier

3.Specify every flow path

4.Improve through experimentation at the lowest possible level possible towards the ideal state

44

The problem with timely data accuracy and availability is not a ‘People” thing, but a process issue:

1.Bookings and invoicing done by various individuals on the chapter’s board of directors

2.Data is kept on personal computers at home or at work and there is no connectivity to others on the chapter’s board of directors.

3.There are times where the proper backing up of files is not done and when a PC crashes information is lost.

4.Consolidation of records-files to make accurate assessments can be greatly compromised

5.Finally as a Channel Partner in your supply chain, “How am I doin’?”

6.So it’s the Process and Procedures that keep us from reaching the “Ideal State”.

45

Lean Rule 1-Structure every activity:

1.A Quote Master allows us to structure the activity so that ALL of the information is located in one document and will be located in one place for availability (Cloud ).

2.Quote Masters are used in an Enterprise Resource Planning System-ERP to capture all of the costs, purchases, non-recurring costs, and other pertinent information about the success or failure of booking a job.

3.It defines each step of the process and ensures that there is a “Workflow -Standard Work” practice that is the standard for your organization-chapter. Standard Work: creates processes and procedures that are repeatable, reliable, and capable.

4.Ensures that there is visibility to all of the members on the chapter’s board of directors team

46

Lean Rule 2-Clearly connect every customer and supplier:

1.Using a simple Excel Quote Master Process improves the Customer –Supplier relationship and eliminates waste in the process.

2.Clearly defines the who, what, where, when, and how and ensures that there is “High Level” of agreement between customers and suppliers. This includes all internal and external customers and suppliers.

3.Ensures that the your “Supply Chain” and “Channel Partners” are working together to meet the customer’s expectations of the products and services you offer and deliver to them.

4.A better and consistent way of understanding your customer-supplier performance. 47

Quote Master Form: Number: ANYCLI-0001

Requester:

Name: Norm Heilweil Date: 9/28/2012 APICS Membership No: 111067

Material Description: CSCP Learning Systems SKU: APIC-12A-CS-CH-PM-001 Quantity: 7 CSCP Visual Guides SKU: APIC-12A-CS-CH-SK-001 7

Project: Tiffany and Company Need Date: 10/7/2012

SIC Number: 5944

II. Purchaser

Order Placed By: Dennis Goldensohn APICS Membership Number: 1067276

Purchased From: Holmes Corp APICS Chapter Account:

Number purchased: 7 Cost per Unit: $630.00 Total cost material: $4,410.007 Cost per Unit: $18.00 Total cost material: $126.00

Shipping/Handling: $40.00 Total Cost: $4,576.00 Invoice No. APIC16847

Shipping Date: 9/28/2012 APICS Membership No:Expected receive date: 10/3/2012 To whom: Chip GretokConfirmed received: Manager of Planning Tiffany and Company

143 Sparks Avenue, Pelham NY 10803Date:

III. Treasurer:

Instructor's Name: *Receipt of Class Evaluations:*Must confirm before paying instructor

Materials: Instructor: Total Outlay

Cost for materials: $4,536.00 Rate per hr Instructor $0.00Cost for shipping and Handling: $40.00 Number of Hours Materials $4,576.00Total $4,576.00 Miscellaneous:

Total: $0.00 Total $4,576.00

IV. Porfit and Loss Analysis:

Total collected: Total Revenue: 0Total Outlay $4,576.00

Profit/Loss: -$4,576.00

Notes: The online licenses have been added to the Partner Resources (PRC), which means the

student roster can now be added. The instructor will need to set this up with the students that are attending the course.

FedEx shipment tracking number: Master tracking number: 395978260845615 (1 of 2)Receive date: 10/03/12 Tracking number: 395978260845622 (2 of 2)Purchase placed on the chapter's APICS account

Lean Rule 3-Specify Flow path:

Quote Master Template

1.This template defines how the “Flow Path” is defined

2.It tells you the who, what, where, when, and how this order is to be executed

3.Has a Beginning and End!

4.Can be then used to analyze your sales and customer satisfaction 48

Lean Rule 3-Specify Flow path continued:

Where do we keep all of this stuff????

Now that we have the ability to store remotely on Cloud Servers, an APICS Chapter can now store this information in one place, have access by all our some of the directors on the chapter’s board of directors, and ensures that it not located in many locations with no backup process!

What is Dropbox?

"Your life's work, wherever you are."Dropbox is a free service that lets you bring all your photos, docs, and videos anywhere. This means that any file you save to your Dropbox will automatically save to all your computers, phones and even the Dropbox website. Dropbox also makes it super easy to share with others, whether you're a student or professional, parent or grandparent. Even if you accidentally spill a latte on your laptop, have no fear! You can relax knowing that Dropbox always has you covered, and none of your stuff will ever be lost. 49

Lean Rule 3-Specify Flow path continued:

Now that we have our documents-Quote Masters in one location for all to see, we can now use online Microsoft Office services to modify and review files from this server. This can NOW be done on Tablets both iPad and Android units:

This is FREE service and you can send any document to others via your preferred email account on your tablet and laptop. Thus you have a wide range of mobility to get the job done wherever you are and you are not tethered to a cable and or “Brick and Mortar” location. Can be used at “Hot Spots”

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Quote Master Process-ProcedurePurpose: The Quote Master will be used to follow the progress and information of jobs that are booked by the APICS New York City-Long Island Chapter. The Quote Master will compile all of the data and transactions in one document and will provide an “Electronic Workflow” to insure that the process moves smoothly and accurately.

Tactical Groups Affected: This process-procedure will be the responsibility of the Requestor, Purchaser, and Treasurer personnel of the APICS New York City-Long Island Chapter.

History and Performance Metrics: This Quote Master Process-Procedure will provide the APICS New York City-Long Island Chapter to understand their customer’s buying habits, what products are high and low volume sellers, the increase in Material Costs and Labor Costs, and what the Profit and Loss outcomes are. In addition, when costs increase for both labor and materials, we will be better prepared to make adjustments that are equitable for both the Customer and the APICS New York City-Long Island Chapter.

Quote Master Process-ProcedurePlease refer to the Quote Master Form.•The Quote Master Form is an “Electronic” form that will be sent to each of the parties that are responsible to input the necessary information. The parties that responsible for filling out this form are; Requester, Purchaser, and Treasurer. The form will be sent via an email attachment to the next party and the final recipient will be Treasurer where all of the required data for Profit and or Loss will be disclosed. The lead time for this entire process is five (5) business days. The profit or loss information will be provided once all of the details are sent to the Treasurer.•Requester: Will be required to enter their name, the date of the request, and their APICS Membership Number. This is required if the materials being ordered are going to be delivered to their home or place of business. The material description, SKU, and quantity needed will be required. This will help speed up the ordering process. Last the Project for whom the materials are being purchased for and the Need Date needs to be entered.Purchasing: The name of the person and APICS Membership Number of the person placing the order is required before any material can be purchased from APICS and the Holmes Corporation. The place from whom the material is being purchased from and the APICS New York City-Long Island Chapter’s account number needs to be entered. The Number Purchased and the Cost Per Unit is then entered and the Total Cost for the material is then entered. The Shipping and Handling cost is entered and the Total Cost for

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Lean Rule 4-Improve through experimentation at the lowest possible level possible towards the Ideal State:

1.After utilizing the process ask yourself and Reflect on:

What worked?What didn’t work?What changes need to be made?How do I execute the process-procedure better?

Last…………………how does the process get us closer to the IDEAL STATE?

The Ideal State is: An ideal state is delivering what the customer wants, when they want it, at a price they are willing to pay, with zero defects, zero waste, and where everyone is safe.

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1.Structure every activity

2.Clearly connect every customer and supplier

3.Specify every flow path

4.Improve through experimentation at the lowest possible level possible towards the Ideal State

Also, if you should want to explore and use this process, you will be able to apply the implementation towards your C-BAR submission for the Narrative-Innovation portion of the C-BAR submission. Extra points for your chapter!!!!!

………..Let’s Review

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…………………………and That’s All Folks!!!!!!!!!!!!!!

Q and A ?

THANKS!!!!!!!!!!

Documents

November 17, 2012 Northeast District Meeting Part 2 – Afternoon Session