Production and Operations Management Project

Our company is currently dealing with a large backlog of invoices sent to us from our vendors. These invoices are from multiple jobs and dates throughout the year. They each have a mix of problems that take time to analyze for solutions to process through our system. This is becoming a bigger problem as time goes by due to the invoices aging and having late fees added to them.

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Our system requires invoices to have the exact PO number, quantity, cost, and coding. A typical PO number in our system would have this format, 10466-8007290. The first five numbers indicate the job number, while the rest is the actual PO. The job number is essential, so we know what job is being billed for the charge. In cases that the PO isn't included, we can use the job number to indicate who's on that particular job site and might've picked up the material without the correct documentation first. We could say that we received an invoice with the PO 10466-8007290 for three gloves at $4.00 each having C for the coding, being that it is a consumable. If any of these bits of information do not match up with the actual PO we have in our system; it will not process automatically. It will then be up to our procurement specialist to research the charges, deem the proper measures to process the invoice or get it credited.

The process begins with the field requiring something for the job site. This could include many different things, such as rental equipment, cylinder rentals, materials, or consumables. Once the field decides on what they need, they complete a requisition form that questions what they need and how much of it will be required. The field will then send the filled out form to procurement. Depending on the order and how expensive it is, procurement needs to receive a quote from the vendor before continuing. Once all the potential variables have been determined, procurement may create the PO in our system. Procurement will then turn back to the field to provide them with the PO number.

This is the beginning of our first problem. Many field employees do not want to complete the requisition form process. This is understandable in the scenario of a field employee needing something as little as safety glasses. In their effort to avoid filling out the form, they will go straight to the vendor and either provide them with a fake PO number or tell them they will come back to give them one. Surprisingly, many vendors will allow them to do the second option knowing that we are a reputable company in the area. This does not only go against the proper procedure, but it creates quite the headache for the procurement specialist, figuring out whether these charges are legitimate once the invoice comes in.

Assuming that we follow the procedure correctly up to this point, our field personnel will now exchange the correct PO number to the vendor for materials. The vendor will then send us the invoice with the PO number, job address, and charges incurred for materials. Every vendor is different in terms of how they design their invoices; some are better drafted than others.

Electronic Invoice Presentation

Late fees affect business entities; adversely, the late fees are usually about 1.5 % monthly interest that precedes the due date. The backlog will see these fees cumulate to unbelievable figures as we have been observing in our business. Late payment negatively affects our business since we highly depend on the prompt payments to sustain daily operation from the cash flow. Knowing this, adopting measures to curb the awful trend need immediate adoption to realize more profits.

Duplicating Bennett, Lapides, Morabito, & Averyt's (2011) work, Using a more technical method to generate and present invoices from a biller to a payer will cut our losses. The system we intend to use gives the payer a leeway or options of payment modes as longs the whole sum adds up. Since we have advanced technology, the process will be done online through a branded virtual site. Virtual sites are not safe and prone to cybercrimes but are efficient, fast, and flexible. The invoices' bills will be sent through emails with links to do the transactions on the safe website. We give the paper option of payment, such as debit cards, paper checks, e-checks, and credit cards. To minimize our expenses, we will drop paper notifications as is the custom to send both email and paper notifications for late payments

The process is a utilitarian one and will see our business thrive since the expenses on billing for late payments have been simplified. Paper notifications have a whole bunch of problems attached. Firstly paper notification for late payments pile is very discouraging for employees to process and store or dispose of the paperwork. Electronic methods are more friendly and flexible for the employees because it's just a click, therefore saving the business from employees' irregularities. I recommend the electronic invoice presentation and payment system to both our business entity or replication in other entities.

Making Purchase Order Number (PO)

The supply chain is a long process shortened by the intricacy of the systems' systems for any business. In my case, the problem in the supply chain revolves around invoices in a business. Invoices primarily detail the company details, date, cost, quality, quantity, amongst other essentials. However, invoices are designed customarily by the business holder; therefore, they may differ as per the business holder design.

In Anderson, Bryant & Wong's (2012) work, they elucidate on the process of generating a customer one-time purchase order number for invoices. The purchase order number can be used to corrupt the whole invoice issue. To counter this, producing a unique Purchase Order number that is authentic in the system is paramount. A unique Purchase Order Number contains different variables that are correlated by a specific sequence. The Unique PO follows an algorithm that is permutated by the input variables. The variables are dependent on the customer's details, such as credit card number, identity card number, pin, or other unique information about a purchase. The algorithm used may not need to be as intricate and complicated for a smaller business entity as it does for bigger ones. This is for logical reasons that the larger entities have a vast customer base that requires a unique number.

As I analyze generating a unique one-time purchase order number, the better the details in it. A detailed purchase order number will be hard to fake, considering that one has to garner all the variables correctly. Secondly, the more precise the Purchase order is, the easier it will be to locate the order from the system and the purchase details. There is no hassle making a complicated purchase order, especially in the age of advanced technology. Proper algorithms will do the work. I would highly recommend using a one-time customer unique purchase order number to curb malpractices and forgery in making purchase order numbers.

Generating Invoice Code Number

For one to generate unique invoices, everything about the invoice should be made as unique as possible. The code number of an invoice should be unique to curb duplication and corruption in making the invoice. The code number of an invoice distinguishes it from all other illegitimate invoices.

Automated invoice generation is useful in curbing the backlogging of invoices and other attached problems. Weber (2008) elaborates on methods of generating and processing automated invoice documents. The process is software integrated and a systemic affair; on a light note, it's more similar to Purchase order number generation but more integrated and complicated. The code numbers are used for making the payment processes and crucial to recording the data. The code number is essential as it is used as a means by the devices to decode the code number. Such an intricate ode number will improve the security of the business transaction documents. The code may not necessarily be on the computer screen document for the online transactions and is generated when printing. This is a trick used by the specialist to ensure the security of business transaction documents. The readout invoice permits simplicity in transmitting data economically.

Such a simplified process will improve the backlog of the invoices by making the whole process automated. More importantly, the process is more secure and will remove all sorts of insecurity and duplication of invoices. The secure codes will improve business performance by minimizing the losses. Changing the regulations to sophisticated ones is a part of making the invoice backlog a past affair. Improving the business is an all-rounded affair. The invoice code number is also useful for storing the copies of the invoice and for easier retrieval whenever they are required for reference or other purposes.

Generating Requisition Form Electronically

Immense forgery business occurs in businesses by improper adjustments of the requisition form. The requisition form can be a route for sheer manipulation of the business entity finances for dubious practices. The requisition form is simply a document used to request items or services in a business set up formally. The paper is usually standardized and through the legal business procedure for making the requisition for anything. Making the process more secure and easy will need to follow a different technique or an upgraded one if the business reaps more profits.

Cirull, Jhingan, Kofkee, & Oswald (2008) argue that digitizing the process of generating the requisition is critical to fighting unwanted occurrences. Once the method of requisition is automated, the business transactions will be as smooth as possible. The method is of few steps that require preauthorization and actual authorization. Initially, the worker will make the requisition proposal that will enlist all the items or services they need. Electronic suggestions will be much easier; thereby, I will adopt an electronic means. After the request, the approvers will re-calculate the item's valuation or the services in monetary value terms for certainty and accountability. After synchronizing the approval, the next step is approval by the personnel in charge. The system will be automated to avoid redundancy in the approval steps before the completion.

Analyzing these processes, the requisition task will be much more comfortable than anticipated by the workers. The trick is to make the lengthy requisition process fast to counter employees' problems circumnavigating it to make their work easier. Knowing the problem is lengthy and eventful but fastened by the system, they will most likely follow it to avoid management problems.

Potential Variables Filling

The filling of potential variables has proved fruitful for small-scale businesses, but the replica could already do wonders for the established businesses. They are taking cases of the most successful business manager; it is observable that they maintain a cordial relationship with their employees. Employee feedback is key to improving a business from any business angle. Having nonmotivated employees or employees whose issues are not listened to can be catastrophic for businesses. Working outside the office ensures the variables filling around the business premise.

Jones, Barrett, & McEvoy (2000) ar to improve business performance, the managers are entitled to putting much of their energy in the field of their business. Setting boots on the ground and at times attending to the customers occasionally will help the management to solve the pertaining problems with their employees. Having an interracial, inter-community workforce is a good source of employee feedback b...