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Problems of Buildit Corporation |
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Buildit Corporation has two problems: one, its engineers are writing illegibly (due in part to the conditions under which they work); and, two, their data processing is batched and handled centrally in Sydney. When errors occur (and are caught), they are sent back to the field offices; often, enough time has elapsed to where the engineers cannot recall the exact nature of the problem. The result is an inefficient costly process which does not meet the needs of the company. Just as the problem is two-fold, the solution should also be two-pronged. To begin with, the problem of producing forms which are more easily read needs to be addressed; by redoing the form so that the amount of actual handwriting is reduced, this problem can be minimized. For example, check boxes can be used to indicate the type of charge, and individual boxes can be used on the form so that the engineers cannot handwrite, but must print, the source documents. This will help eliminate some problems as the engineers will have to take more time to fill out the source document. However, some engineers are likely to balk at the slowdown, noting that it will decrease their productivity. Given the losses associated with the current system, this loss of productivity is best absorbed in the field rather than later on when the engineers' memories may fail. The second part of the solution is to move keypunch operators to the field offices. Instead of sending the source documents to the central office, the
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ained on its use, and the information system staff at Sydney would also have to undergo training in order to ensure that they used the system to its full potential. Software would have to be acquired (either through purchase or through custom development), and that requires both time and money, as well. It is unlikely that the system would be implemented in all offices at one time; instead, one office would likely be the "beta" test for the system and full implementation would depend on the success and redesign as a result of the beta site.
The best alternative for Buildit Corporation is to combine these solutions so that the keypunch operators are immediately moved to the field and keypunch operations relocated there. At the same time, the company should commit to acquiring modern computer technology and work toward its implementation over no more than two years' time. By that time, data communications costs may also have been reduced.
14-7 Unfortunately, the term "audit" has several different uses in the business world, some of which carry legal ramifications, and some of which do not. Financial auditors, such as Price Waterhouse, KPMG Peat Marwick, or any other accounting firms, are interested in whether or not the financ
Category: Business - P
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Buildit Corporation, Board FASB, Peat Marwick, keypunch operators, edp audit, source documents, information system, field offices, inadequate recovery procedures, company unable, shareholders learned, inadequate recovery, sent field, source document,
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