activity based scoping and pricing for document imaging projects
DESCRIPTION
Using Benchmarking, PFD and Piece Rates to increase your visibility into document imaging COGs.TRANSCRIPT
INTRODUCTION
SRIIA TECHNOLOGIES SALESMANAGER
Activity Based Cost Systems
1/24/2014
Scan Conversion of Hardcopy / Analog Media to Digital Image
Store Database / Repository for Electronic Records
IndexCreation of Searchable Databases and Index Systems for Digital Images & Records
Retrieve Secure, Accurate and Global access to Electronic Records
IntegrateLink / Connect various databases at levels from simple DB ping-return to fully update-able connections.
Archive Archiving & Storage for Digital and Hardcopy Information
Records Management Sectors
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Records Management Sectors
ACME Business Services Company
Retrieve
Index
Integrate
Archive
Scan
Store
Superior Selling Position
Move from selling sectors to
a “business services” model.
Business Challenges
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• Superior Selling Position;
• Document Imaging Services
• OEM - Document Management Software, Content Management Software, Scanners, Servers – Other Hardware
• Consulting Services
• Specialty Software Development
• Professional Services
• BPO (Business Process Outsourcing)
• Hosting
Account for It
Build ItSell It
Business Delivery Model
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Mixed COGs
Lease
Build
Buy
Advantages Using SalesManager
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1. Account for all SKUs
2. Account for all Lists and Fields
3. Configurable for varied operations environments
4. Configurable for team leads, shift leads, training and remediation
5. Configurable Autonomic COGs
6. Itemized COGs for each step in operations workflow (operations based cost drivers )
Business Challenges
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• Conventional Cost Accounting;
• Units of output
• Direct labor hours
• Various Costs - ?
• End of Month – hopefully (Income > COGs)
• Problems
• Biased, materially misleading cost estimates
• Omission of operations based cost drivers may distort the investigation of the likely effects on costs of changes in operating strategies.
SalesManager Base Architecture
List / Fields
Complete Sales Book – Lists and Fields and Cost Drivers;
Record Types
Not Used
Abstract of Judgment
Affidavit of Claim
Assignment of Mortgage
Index Assignment of Mortgage
Bill of Sale
Birth and Death
Book of Plats
Brands
Certificate of Cond Sale
Certificate of Sale
Chattel Mortgages
Civil Court
Commissioners Journal
Media Types
Not Used
16mm-Roll Film Diazo 215
16mm-Roll Film Silver 100
16mm-Roll Film Silver 215
35mm-Roll Film Diazo 100
35mm-Roll Film Silver 100
Aperture Card
Binders
Cabinet
COM Microfiche: 42x - up to 208
frames
COM Microfiche: 48x - up to 270
frames
Exported Database 1
Exported Database 2
File Box Legal
Software
Not Used
DataCap-Fastdoc Capture
DSI-PaperFlow
DSI-PVE Capture
Kofax-Express
LF-Intuition
LF-Quick Fields
ReadSoft-Document
Software-Enterprise Content Management
Not Used
DSI-PVE Enterprise (Single)
DSI-PVE Enterprise (10-20)
DSI-PVE Enterprise (21-50)
DSI-PVE Enterprise (51-200)
DSI-PVE Enterprise (201-500)
DSI-PVE Enterprise (>501)
DDMS- Enterprise Edition with Workflow
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SalesManager Base Architecture
SKU Management
Operations
SalesManager Base Architecture
Example – Human Powered Process (HPP)
Step 2: 2nd Pass
+Step 2: Audit
+Step 2:
+
• Indexing-2nd
Pass
• Indexing-
Audit
Ratio = 2:1XX Ratio = 10:1
Step 2: QC
• Indexing X • Project QC @ established rate
1/24/2014
Operations Based Cost Drivers
Step 1: 1st Pass
• Indexing
a.
Step 1: 1st Pass
• Indexing
b.
Step 1: 1st Pass
c.
SalesManager Base Architecture
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Operations Based Cost Drivers
Team Lead
FTEs
1 2 3 4
5 6 7 8
9 10 11 12
13 14 15 16
Team Lead / Shift Lead Labor Calculations
Example for calculating Team Lead cost burden;
FTE Hourly Pay Rate… $13.50Team Lead Pay Rate…. $16.50
FTE Indexing Rate….. 59.15 RPH16 FTE @ 59.15 RPH…. 946 RPH
13.50 * 16 = $216.00
→ (COGs-FTE) 216.00 / 946 = $0.22
→ (COGs-TL) 16.50 / 946 = $0.017
→ (COGs FTE + TL) = $0.237
SalesManager Base Architecture
1/24/2014
Methodology: Training / Remediation
• Training
• Determine the number of training hours for each new project;
• Total Hours
• Weekly Hours
• Remediation
• Determine the number of remediation hours for each new project;
• Total remediation hours
=Autonomic Cost Drivers
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- COGs = 1,125.00
- COGs = 1,600.00
Implementation = 1 ½ hours Training = ½ hour
Implementation = .75 hoursTraining – Admin = 8 hoursTraining – Trainer = 4 hours
Training – User = 2 hours
Operations
SalesManager Base Architecture
• Indexing
1/24/2014
Cost Drivers to COGs
Inventory
13.50 / 655 = .021
Document Prep
13.50 / 3,000 = .005
Document Scanning
13.50 / 5,500 = .002
Document Grouping
13.50 / 525 = .026
.021
COGs
.026.028.054Indexing
13.50 / 655 = .021
.075
SalesManager Base Architecture
1/24/2014
Methodology: Benchmarking
• Benchmarking
• The process of improving performance by continuously identifying, understanding, and adapting outstanding practices and processes found inside and outside an organization (company, public organization, University, College, etc.).
• Pioneered by Xerox Corporation in the 1979s…
SalesManager Base Architecture
1/24/2014
Methodology: Benchmarking
• Benchmarking-why?
• Camp *4+ states that “whether it is internal, competitive, or noncompetitive, benchmarking should be corporate wide, comprehensive, controlled, continuous, and an integral part of the planning process.” In this way, organizations can use benchmarking to simplify business processes and thereby meet true customer requirements, reduce training and labor costs, reduce process redundancies, make processes more predictable and repeatable, and be more sensitive to changing customer requirements.
• *Camp, R.C. (1989), “Benchmarking: The Search for Industry Best Practices That Lead to
• Superior Performance,” Quality Progress, Vol. 22, No. 5, pp. 66-68.
Methodology: Piece Rate Calcs
• Personal needs
• Fatigue
• Unavoidable Delays Allowance
1/24/2014
*US DoL suggests 15% for PD&F*US OPM - Hourly and biweekly rates of pay for most Federal civilian employees are computed as required by 5 U.S.C. 5504(b) – 2,087 work hours annually.
FTE Rate = 13.50Process Benchmark = Tn
Tn = 65 RPH (records per hour)
Apfd = .09
Tstd = 59.15 RPH Piece Rate Quota
13.50 / 59.15 = .228 per record
Sales
SalesManager Base Architecture
Sales Scoping is fixed, repetitive process;• Primarily dropdown and radio button driven
process
Only “data entry” is at;• Customer Information• Project Information• Project Scope• Index Books Detail
• Project QC @ established rate
1/24/2014
SalesManager Base Architecture
Methodology: Pricing Workflow
1/24/2014
Sales
• Scope, information gathering
Admin
• Production Manager (ProdM)
Admin
• Project Manager (PM)
Admin
• Development Manager (DevM)
Admin
• Sales Manager (SalesM)
Customer Pricing Socialization
• Proposals
• SOWs
• RFP Responses
Example Sales Scenario
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Scenario 1: Medical Records (Boxes)
• Patient Records (Medical Records)
• Implementing a multi-facility integrated EMR system
• Select to begin the backfile imaging of analog records in preparation for a completely digital records environment.
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Scenario #1: Hospital Medical Records
• Patient Records (Medical Records)
• Interim solution – hosting until EMR “go-live”.
• Estimated go-live in 4-6 years;
• Scanning solution for day-forward imaging.
Scenario 1: Medical Records (Boxes)
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• Scope
Scenario #1: Hospital Medical Records
Facility Doc Type Date Range Doc ID Range Media Type Media
Volume
Page Per Pages Per
Record
Hospital
Storage #2
Medical Records 2002-2010 0134528
0132878
Banker’s Box
(Letter) (8 ½ x 11)
1,601 3,000 45
Scenario 1: Medical Records (Boxes)
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Scenario #1: Hospital Medical Records
• Sales Notes for Processing:
• Pre-Scan Services
• Inventory
• Inventory to be done on-site at storage facility.
•
Scenario 1: Medical Records (Boxes)
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Scenario #1: Hospital Medical Records
• Imaging Services Detail:
• Auto Deskew
• Auto Crop
• Auto Despeckle
• Skeleton Filter
• (DSI system will allow for original final image for viewing)
• OCR for Full Text
Scenario 1: Medical Records (Boxes)
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Scenario #1: Hospital Medical Records
• Document Grouping (Stapling)
• Ave record is 45 pages.
• Document Creation Stapling
• Create barcodes for stapling
• Barcode sheets are to be deleted upon recognition, marking new
Scenario 1: Medical Records (Boxes)
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Scenario #1: Hospital Medical Records
• Indexing (from existing database)
• Hospital has database containing full indexing information.
Scenario 1: Medical Records (Boxes)
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Scenario #1: Hospital Medical Records
• Indexing (from existing database)
• Each patient file should have a cover page containing the following minimum information;
• Patient Name
• Patient Number
• Intake Number
• Admin Date
• Hospital Number
• Use auto-indexing to pull data from cover page for match & merge with existing database.
Scenario 1: Medical Records (Boxes)
1/24/2014
Scenario #1: Hospital Medical Records
• Data Storage
• Hosting - Provide enterprise hosting for all images. Hosting may end upon EMR implementation – to be negotiated. (5 year contract)
• Analog Storage
• Create 16mm roll film for archiving
• Provide box & container storage. (5 year contract)
Scenario 1: Medical Records (Boxes)
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Scenario #1: Hospital Medical Records
• System Sales:
• Departments;
• Ambulatory
• Surgical Center
• General Practice
• 10 Capture Stations
• Capture Software
• Capture Hardware
• Workstations w/ monitors
Scenario 1: Medical Records (Boxes)
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Phase 1
1/24/2014
Sales: Project Scoping
Scoping Exercise (Assume Wizards Set-Up)
• Lists, Fields
• Software, Hardware
• Supplies, 3rd Party services
• Travel
• Production Process elements
• Performance Benchmarking
• PFD
• Tstd, Tn (quotas)
• Training, Remediation, Team Lead (TL) Ratio
1/24/2014
1. Customer / Project Information
• Customer Info;
• Identify Sponsors and Stakeholders – no short-cuts; many people rely on this info.
• State can determine Professional Services billing rate
• Project Information
• Project name – help everyone out – name it!
• Type of response
• Required response date
• Projected launch date
• In-house / on-site1/24/2014
2. Project Scope
• Source Document Profiles;
• Document Type
• Media Type
• Document Year; From – To: (ad-hoc)
• Document ID; From – To: (ad-hoc)
• Number of Units: (ad-hoc)
• Number of Items per Unit: (ad-hoc)
• Page Per Document/Record: (ad-hoc)
1/24/2014
3. Inventory
• Must have inventory;
• Existing from customer (spreadsheet, database, word doc…)
• Done by us?
• In-house or on-site
• If film, need Tri-Check labels?
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4. Document Prep
• In-house / on-site;
• Identify by established category (1 – 4)
• Bankers box or other
• Number of pages per
• Page size / quality
• Bindings, folders, books
• Need to create barcodes sheets / labels
1/24/2014
5. Volume Edits
• Only step in process that will edit the delivered number of images
• Duplex Scanning
• Automated / manual removal of selected pages (i.e. –cover sheets etc…)
• For real property records / vitals: page duplication for run-ons, certificate extraction for births / deaths…
• Etc…
1/24/2014
6. Auto-Imaging Processing
• Deskew, Despeckle, Auto-Cropping
• OCR
• Skeleton Filter
• Automated Redaction Processing
• If redaction, don’t forget about verification
• Other…
1/24/2014
7. Manual Imaging Processing
• Zonal Enhancements
• Manual Cropping
• Dual Polarity Reversal (Photostats)
• Text Enhancement
1/24/2014
8. Document Creation (Stapling)
• Manual
• Manually identifying first / last for each record / document
• If Match & Merge, get copy of db for analysis prior to pricing
• Automated
• For automated from barcode sheet or label, determine if sheet / label creation pricing is required
• Include barcode pricing if required
• If creation from database, get copy of db for analysis prior to pricing 1/24/2014
9. Indexing
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• Manual
• Associate an existing manual indexing type (1 – 4) and associate with each media type
• If Match & Merge, get copy of db for analysis prior to pricing
• Automated
• For automated from barcode sheet or label, determine if sheet / label creation pricing is required
• Include barcode pricing if necessary
• If creation from database, get copy of db for analysis prior to pricing
9.a. Indexing (cont.’)
• Government – Index Books
• Look at source materials and get image examples for;
• Number of pages per book
• Number of lines per page
• Number of characters per line
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10. Film Services
• Film Assessment needed?
• Select category by service level requested
• Images archived to film?
• Size of film for creation
• If day-forward service, determine duration for contract
• Duplication
• 1st Generation copy, Dupe?
• If day-forward service, determine duration for contract
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11. Vault Storage
• Container or Shelf?
• Duration for contract?
• Microfilm (roll, fiche, aperture cards)
• Existing
• Newly created from project images
• Boxes (Letter, Legal, Other)
• Books (size)
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12. Digital Storage
• Active Data – Hosting
• Source Docs for image creation
• Select hosting product and service level (by volume in GB)
• Determine duration for contract
• Off-Line Data Hosting
• Source Docs for image creation
• Select storage product and service level (by volume in GB)
• Determine duration for contract1/24/2014
Establish default image size for calculations
13. 3rd Party Services
• 3rd party services for services on media types entered into scope
• Scanning (film, paper)
• Special Imaging Services
• On-Site, travel costs
• Other
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14. Supplies
• Supplies
• CD mailer kits
• USB project drives
• Tapes / back-up supplies
• Microfilm supplies
• Boxes
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15. Warehouse / Logistics
• Warehouse
• Faxing, Document / file retrieval
• Scan-on-demand
• Document Purge, Document Destruction
• CD duplication, Other
• Logistics
• Pick-up delivery
• Shipping project media
• Shipping project drives, Other
1/24/2014
16. System Sales
• Capture Hardware
• Type and level of scanner
• Workstations – other hardware
• Workstations
• Monitors
• Capture Software
• Manufacturer
• Professional Services
• Installation
• Client Training 1/24/2014
Phase 2
1/24/2014
Sales Submits Project for Admin Review
1. Ops / Production Manager Review
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Scanner Settings
•Image Format
•DPI
•Duplex
FTE Selections
•Classifications
•AM / PM allocations
Quotas
•Production Manager
•FTEs
PFD
•Update Unavoidable Delays Allowance –check to see review schedule
Training / Remediation
•Ratio to total labor hours
Team Leads
•Ratio of FTEs per Team Lead
Default: Review over-all scope and notes.
2. Project Manager Review
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Project Durations•Conversion Project
•System Implementation
Project Management Hours
•Conversion
Project Management Hours
•System Implementation
Travel Costs
• Inventory
• Pilot Phase
• Project Meetings
On-Site Calculations
• Mileage Costs
• Set-up, daily fees
Client Training
• Remote
• On-site
Default: Review over-all scope and notes.
3. Development Manager Review
1/24/2014
Default: Review over-all scope and notes.
Auto-Imaging Dev Hours
Auto-Stapling Dev Hours
System Install
Tech Support and Other
Auto-Indexing Dev Hours
Auto-Redaction Dev Hours
4. Sales Manager (Final) Review
1/24/2014
Default: Review over-all scope and notes.
Scope
•What kind
•How many
•Volume Edits
System Install
•Software
•Hardware
•Services
Review on-site details
•Travel details
•On-site duration
•Distance
Pricing
•Mark-Up
•Margin
•Per Unit
Storage Services
•Hosting
•Analog
Film Services
•Writing
•Duping
•Assessment
Q & A
• Thank you…
• Kevin Williams, CDIA+
• Principal
• 512.333.4059
1/24/2014