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Accounting Efficiency Challenges

A'yanna Lyons manages the accounting department of Hemmerle Supply Company. The company established a new standard that invoices must be prepared, printed, and mailed within 24 hours of receiving a customer order. While A'yanna's department was meeting this standard 93% of the time by processing invoices within half a day, a productivity report showed 25% of invoices were being mailed three days after the order. Upon further investigation, A'yanna discovered her department did not always receive timely information from shipping and the mail room was not meeting its deadline to ship invoices received before noon.

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182 views1 page

Accounting Efficiency Challenges

A'yanna Lyons manages the accounting department of Hemmerle Supply Company. The company established a new standard that invoices must be prepared, printed, and mailed within 24 hours of receiving a customer order. While A'yanna's department was meeting this standard 93% of the time by processing invoices within half a day, a productivity report showed 25% of invoices were being mailed three days after the order. Upon further investigation, A'yanna discovered her department did not always receive timely information from shipping and the mail room was not meeting its deadline to ship invoices received before noon.

Uploaded by

jitendra7779858
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Case Study

Meeting the Standard


A’yanna Lyons is the manager of the accounting department for the Hemmerle Supply Company, an
office supplies wholesaler. As the manager, she is responsible for all of the work completed by the
employees in the accounting department, including its quality and quantity. A’yanna was proud of the
work her employees did. They had a high level of motivation and always seemed to do their best to
complete the work assigned to them. The entire department seemed committed to being an asset for the
company. Therefore she was surprised by feedback she received on a work issue that affected her
department.

Hemmerle had recently established a new standard that invoices would be prepared, printed, and mailed
to customers within 24 hours of receiving the order. Although the new standard presented a big
challenge to the accounting department, A’yanna had worked with her teams to do their part to meet
the standard. By reorganizing the way they did their work and using a new computer tracking system
for each order, the department was able to complete the invoice process within half a day from the time
they received the information from the shipping department.

After the new procedures were in place, A’yanna had carefully checked the work of her department.
Although there had been a few times when an employee absence or a problem with the new computer
software had slowed the work, the department was meeting its standard of processing invoices in half
a day 93 percent of the time. However, in the first productivity report she received that tracked the
company’s progress in meeting the 24-hour standard, A’yanna learned that 25 percent of the invoices
were being mailed three days after the order was received. Upon checking further, she discovered that
her department did not always receive the necessary information from the shipping department on
schedule and that the mail room was having trouble meeting its deadline to ship out on the same day all
mail received before noon.

1. What are some possible problems in this situation? Identify problems that could be occurring
in the accounting department as well as in other departments of the company.
2. What are some alternative solutions?

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