Star Industries, Inc., manufactures highly engineered products for both the electric transmission and wireless communication industries. Rebecca Davis, corporate controller, oversees the accounting and budgeting functions for the company. Last year she directed a major overhaul of a number of internal processes, including payroll accounting and customer billing. The overhaul included new equipment and technologies as well as new manual procedures for the staff. Now that the new processes had about a year to iron out the glitches, she needed to know how many, if any, improvements were made. The motivation for the process improvement project was to reduce costly inefficiencies in payroll and to reduce the lead time to bill customers. The latter improvement was aimed at improving revenue flows and cash position. Rebecca realized that she needed the help of someone who could develop budgets and had the skills to track budget expenses, analyze data, and audit ongoing processes. She hired Jamal Johnson, who recently graduated with a degree in accounting, to assume the role of budget analyst. Jamal began by studying the payroll accounting process. It consisted of a number of repetitive procedures that included the proper authorization of overtime, approval of time records, and checks on the calculation of gross pay and payroll deductions. Auditors could periodically sample individual employee pay records to verify the documentation of the required authorizations and approvals. A missing authorization or approval would constitute a process defect. 1) Jamal wondered how big the sample should be? 2) How often should it be taken? 3) Over time, how would he know if the process is getting better or getting worse? The customer billing process has revenue implications and therefore has high status in the accounting department. Jamal realized that the important statistic in this process is the time between the point that goods are provided and the point that the customers are billed; reducing that time is a key step in speeding up collections. Auditors could randomly draw samples of invoices and measure the amount of time between delivery date and billing date. 4) In this case, what would be considered a defect? 5) How big should the sample be, and how often should a sample be taken?6) Finally, over time, how can he be sure that the process is running as planned? Answer these 6 questions in short paragraph form and add any charts, equations from Chapter 3 to support your answers. File submissions Maximum file size: 100MB, maximum number of files: 20

Star Industries, Inc, manufactures highly engineered products for both the electric transmission and wireless communication industries. Rebecta Davis, corporate controller, oversees the accounting and budgeting functions for the company. Last year she directed a major overhaul of a number of internal processes, including payroll accounting and customer billing. The overhaul included new equipment and technologies as well as new manual procedures for the staff. Now that the new processes had about a year to iron out the glitches, she needed to know how many, if any, improvements were made. The motivation for the process improvement project was to reduce costly inefficiencies in payroll and to reduce the lead time to bill customers. The latter improvement was aimed at improving revenue flows and cash position. Rebecca realized that she needed the help of someone who could develop budgets and had the skills to track budget expenses, analyze data, and audit ongoing processes. She hired Jamal Johnson, who recently graduated with a degree in accounting, to assume the role of budget analyst. Jamal began by studying the payroll accounting process. It consisted of a number of repetitive procedures that included the proper authorization of overtime, approval of time records, and checks on the calculation of gross pay and payroll deductions. Auditors could periodically sample individual employee pay records to verify the documentation of the required authorizations and approvals. A missing authorization or approval would constitute a process defect. 1) Jamal wondered how big the sample should: be? 2) How often should it be taken? 3 ) Over time, how would he know if the process is getting better or getting worse? The customer billing process has revenue implications and therefore has high status in the accounting department. Jamal realized that the important statistic in this process is the time between the point that goods are provided and the point that the customers are billed; reducing that time is a key step in speeding up collections. Auditors could randomly draw samples of invoices and measure the amount of time between delivery date and billing date, 4) In this case, what would be considered a defect? 5 ) How big should the sample be, and how often shouid a sample be taken?6) Finally, over time, how can he be sure that the process is running as planned? Answer these 6 questions in short paragraph form and add any charts, equations from Chapter 3 to support your answers: Star Industries, Inc, manufactures highly engineered products for both the electric transmission and wireless communication industries. Rebecca Davis, corporate controller, oversees the accounting and budgeting functions for the company. Last year she directed a major overhaul of a number of internal processes, including payroll accounting and customer billing. The overhaul included new equipment and technologies as well as new manual procedures for the staff. Now that the new processes had about a year to iron out the glitches, she needed to know how many, if any, improvements were made. The motivation for the process improvement project was to reduce costly inefficiencies in payroll and to reduce the lead time to bill customers. The latter improvement was aimed at improving revenue flows and cash position. Rebecca realized that she needed the help of someone who could develop budgets and had the skills to track budget expenses, analyze data, and audit ongoing processes. She hired Jamal Johnson, who recently graduated with a degree in accounting, to assume the role of budget analyst. Jamal began by studying the payroll accounting process. It consisted of a number of repetitive procedures that included the proper authorization of overtime, approval of time records, and checks on the calculation of gross pay and payroll deductions. Auditors could periodically sample individual employee pay records to verify the documentation of the required authorizations and approvals. A missing authorization or approval would constitute a process defect. 1) Jamal wondered how big the sample should be? 2) How often should it be taken? 3) Over time, how would he know if the process is getting better or getting worse? The customer billing process has revenue implications and therefore has high status in the accounting department. Jamal realized that the important statistic in this process is the time between the point that goods are provided and the point that the customers are billed, reducing that time is a key step in speeding up collections. Auditors could tandomly draw samples of invoices and measure the amount of time between delivery date and billing date. 4) in this case, what would be considered a defect? 5 ) How big should the sample be, and how often should a sample be taken?6) Finally, over time, how can he be sure that the process is running as planned? Answer these 6 questions in short paragraph form and add any charts, equations from Chapter 3 to support your answers