1. November 17, 2012 Northeast District Meeting Part 2 – Afternoon Session

2. APICS Northeast District Meeting November 2012 Binghamton, NH

3. Two Concurrent Flights

4. Financial Management Flight

5. Use of & Lessons Learned in Cloud Based e-mail Management John Capron, CPIM Mid Hudson Chapter

6. Please see separate pdf file posted on the Northeast District website.

7. Top 5 Financial Management Best Practices Reed DuBow, CPIM Northern New Jersey Chapter

8. Top 5 Financial Management Best Practices Reed DuBow, CPIM APICS Northeast District Meeting November 17, 2012

9. Top 5 Financial Management Best Practices #5: Audit your financial records yearly (by either an outside accountant or an independent party within the chapter). Why? The IRS can come in and audit your form 990/financial statements/books so you want them to be in good standing. Chapter history – to review good/bad financial years. Possibly detect fraud or improper/erroneous accounting practices.

10. Top 5 Financial Management Best Practices #4: File your Form 990 yearly (and any Annual Reports with your state). Why? The IRS can revoke your tax exempt status if you do not file your 990 for three consecutive years. The entity must then file for reinstatement of exemption status. CPA requirement.

11. Top 5 Financial Management Best Practices #3: Cross-train chapter board members in the finance function. Why? If someone gets hit by the proverbial run-away beer truck, who knows how to keep the books? Fraud detection.

12. Top 5 Financial Management Best Practices #2: Separation of Duties/Multiple signors on bank accounts. Why? See previous slide (beer truck and fraud). Reduces conflict of interest. i.e. NONJ has three signors on its checking account and requires the President, Treasurer, another VP and originator to sign its check requests.

13. Top 5 Financial Management Best Practices #1: Document, document, document (and organize files neatly by year). Why? Protects chapter in the event of an audit. Gives chapter officers pro forma to use and update. Reminds people what was done and when.

14. Top 5 Financial Management Best Practices Questions??? Thank you! Reed DuBow, CPIM

15. Controlling the Budget: A best practice on how to set, track & monitor the budget to provide financial transparency to the Chapter Board Dewey Heichel, CPIM Providence Chapter

16. Controlling the Budget: A Best Practice on How to Set, Track, & Monitor the Budget to Provide Financial Transparency to the Chapter BOD.

17. Dewey Heichel, CPIM Controller APICS Worcester County Chapter #22 BS Engineering MBA

18. Agenda Worcester Chapter Benefit and Need for Controlling the Budget Tools Used in Budget Process Setting the Budget Controls to Assist in Tracking and Monitoring the Budget – Financial Review Policy

19. Worcester Chapter #22 Incorporated in 1960 Platinum level since 1990 150 Members 13 Board Members Treasurer and Controller

20. Typical Expense Budgets President $10,000 Programs $4,000 Education $3,400 Membership $2,000 Marketing$1,200 Academic Liason$900 Capital $400 Secretary $120 Treasurer and Controller$100 Company Coordinator$100 Vice President$0

21. Benefit and Need for Setting and Controlling the Budget Overall Chapter Financial Health Road Map – Ties into how Chapter will reach its goals – Identifies areas that need attention and focus Example: 2011 Education Income = $34,000 2012 Estimated Income = $10,900 Corrective Action: Board has established a subcommittee to look at establishing more educational offerings and increase number of class participants.

22. Prepare Tax information – Chart of Accounts should be structured to support easy extraction of information for taxes Expenses/income related to service the organization provides Travel expenses Supplies expense Etc. Benefit and Need for Setting and Controlling the Budget (Cont.)

23. Tools Used in Budget Process Budget Document Custom Excel spreadsheet Each Board position has a budget page w/accounts listed Chart of Accounts Excel spreadsheet Categories for recording expenses and income Control Sheet and Control Sheet Assignment Log Excel spreadsheet Individually track all expense and income transactions Expense approval control Checking and Cash Accounting Software Quiken Home and Business Software Basic, inexpensive

24. Excel Screen Shot Showing Budget Tabs Each Board Position has a budget on its own tab

25. Budget Document - Front Page Summary

26. Budget Document Example of an Board Members Budget

27. Chart of Accounts Spreadsheet – This is on a Tab in the Control Sheet Workbook 106 Accounts

28. Control Sheet Excel spreadsheet Individually tracks all expense and income transactions – paper trail and approval process. Similar to an expense report

30. Originator - Fills out Control Sheet and E-mails to Controller Controller – Compares expense/revenue described on CS sheet to budget – Approves the transaction – Issues a control number – Logs the expense/revenue in the Control Sheet Log and in budget – Emails Sheet to Originator and Treasurer Treasurer – Processes the Control Sheet and receipt (if an expense) – If debit card, matches receipt to bank statement records – Records in Quicken – Makes payment or deposit as required CS records must match all transactions listed on the bank statement. Control Sheet Processing

31. Screen Shot Showing Tabs Containing Instructions for Using Control Sheet Chart of Accounts Instructions for CS Sheet Use CS Sheet Example

32. Example of Control Sheet Log Controllers Report Control Sheet Log 2012 Board Meeting CS Transactions for Period 7/12/12 to 8/31/12 Transaction Date Issue DateAcct Debit Card UsedCS #PayeeCS OriginatorDescription AmountType 7/12/127/24/1295-9n8400Fred Mezynski labels 6.32Expense 7/18/127/24/1210-9y8401The HartfordTom BarryLiability Insurance 35.00Expense 7/14/127/25/1210-3y8402APICSTom BarryNational Meeting Reg 1,049.00Expense 7/18/127/25/1210-3y8403 Worc County /ApicsTom BarryNational Meeting Reg 1,049.00Credit 7/9/128/1/1230-9n8404Janet Besset Ink 82.98Expense 7/18/128/1/1210-3y8405ApicsTom BarryInt Conf Re-Reg. 899.00Expense 7/27/128/1/1240-9y8406APICSTom BarryPDM Raffle Gifts 58.29Expense 7/17/128/1/1210-9y8407APICSTom BarryLeadership Books 119.62Expense 7/31/128/1/1240-9y8408Office MaxTom BarryBadges 33.27Expense 7/30/128/1/1240-9y8409WalmartTom BarryWallet Card Stock 7.41Expense 7/26/128/1/1210-5y8410Cio BellaTom BarryBoard Meeting Food 99.29Expense 8/13/128/20/1210-2y8411Worcester MPOTom BarryPO Box Keys # 523 21.00Expense 8/13/128/20/12 10-2 y8412Worcester MPOTom BarryPO Box # 523 120.00Expense 8/13/128/20/1295-1y8413Office MaxTom BarryLaminate PDM Schedule 10.52Expense 8/15/128/20/1220-9y8414Georges PizzaDewey HeichelPizza - Transition Meeting 30.17Expense 8/15/128/20/1220-9y8415Georges PizzaDewey HeichelPizza Tip - Trans. Meeting 5.00Expense 8/22/128/23/1220-9n8416Sue Motta Mailing Envelope 1.49Expense 8/22/128/23/1220-2n8416Sue Motta Postage 2.12Expense 7/25/128/23/1220-9n8417Mary Skorvanek Ink Cartridge 46.99Expense 8/16/128/23/1220-9n8418Doreen Holmes Misc. Office Supplies 37.25Expense

33. Checking and Cash Accounting Software Quicken Home and Business Software Reports: Does not have general ledger function Checking and Cash Account Balances Checking Account Reconciliation Summary Cleared Transaction Detail Report Chart Account Summaries

34. Example of Quicken Output Showing CS Sheet and Account Numbers

35. Setting the Budget Controller sends each Board member having budgetary responsibility their previous years budget sheet (in Excel) with only the actuals showing. The Board members fill in their new budgets based on their next years goals. The Budget sheet is e-mailed back to the Controller who pastes it into the new budget workbook. The final budget is emailed to all board members, then voted on for acceptance during the next regularly scheduled board meeting.

36. Chapter Financial Review Policy Controls to Assist in Tracking and Monitoring the Budget

37. To ensure accuracy and transparency in all financial matters concerning the collection and payment of chapter funds, the following activities will be performed: 1.A yearly budget will be assembled by the Controller in accordance with the chapter by-laws. The budget will be assembled with input from the board members. The board will vote to accept the budget. 2.A CS sheet must be submitted for all financial transactions, income or expense. Any board member may submit a CS sheet. The Controller must approve the expenditure, assign a CS number, and forward it to the treasurer before any funds are issued. In absence of the controller or treasurer, the president and/or other appointed board member will perform this duty. The person approving the CS sheet transaction cannot be the same person issuing the check. It is important that two people are involved in each transaction to aide in fraud prevention.

38. 3. The Controller will report on the budget during the monthly meeting. Any expenditure over $100 that is not budgeted will be brought up for review by the board for acceptance. Any expenditure not previously approved can be turned down by the board, at which time it will be considered a personal expense, payable by the person who incurred the expense. If the expense was made using a Chapter debit card, the person will reimburse the Chapter. 4. During the monthly board meetings, the Board will review the chapters financial transactions. Acceptance of the transactions will be confirmed by acceptance of the treasurers and controllers reports. Only the current reporting periods transaction records will be reviewed unless there is an outstanding issue that requires resolution. Financial reports to be supplied during the Monthly meeting are: Treasurer – a. Checking Account Reconciliation Summary b. Cleared Transaction Detail Report c. Un-cleared Transaction Detail d. Present the latest Bank Statement showing the account balance. Controller -a. Updated Budget Summary b. Copy of the CS log showing transactions for the latest reporting period.

39. 5. Two audits of the chapters financial records and procedures will take place each year in accordance with the chapters by-laws. 6. Education Income and Expenses For Chapter operated educational courses and seminars, The payment policy is participants shall prepay before the course commences. The VP of Education will report monthly the financial status of planned and current courses. This will include a list of attendees and payment status. In the absence of a VP of Education, the President will assume this duty. The President may assign or appoint this task to another board or committee member.

40. Dewey Heichel at DNHeichel @ gmail.com For a copy of the budget or control sheet Excel templates, please contact:

41. The Quote Master: A best practice of a tool created for all quoting, orders and administration Dennis Goldensohn & Sudhir Sachdev NYI-LI Chapter

42. QUOTE MASTER LEANING OUT the CRM PROCESS for APICS CHAPTERS Dennis Goldensohn APICS New York City-Long Island Chapter November 17, 2012 42

43. What can you expect to take away from this presentation? Understand what the Four Rules of Lean are Understand that the problem with data accuracy and availability in not a PEOPLE thing, but a process issue What is a Quote Master and where is it used How using a simple Excel Quote Master Template can improve your Customer Relationship Management-CRM and eliminate waste in this process Cloud Storage: Centralize data in one place: Drop Box, Box. Net, Sky Drive, Google Docs Online and FREE use of Microsoft Office: Word, Excel, and Power Point via Cloudon and Onlive cloud based thin client Introduce Workflow Management between internal and external customers And the need for a comprehensive Process-Procedure using Standard Work applications and procedures 43

44. What are the Four Rules of Lean? 1.Structure every activity 2.Clearly connect every customer and supplier 3.Specify every flow path 4.Improve through experimentation at the lowest possible level possible towards the ideal state 44

45. The problem with timely data accuracy and availability is not a People thing, but a process issue: 1.Bookings and invoicing done by various individuals on the chapters board of directors 2.Data is kept on personal computers at home or at work and there is no connectivity to others on the chapters board of directors. 3.There are times where the proper backing up of files is not done and when a PC crashes information is lost. 4.Consolidation of records-files to make accurate assessments can be greatly compromised 5.Finally as a Channel Partner in your supply chain, How am I doin? 6.So its the Process and Procedures that keep us from reaching the Ideal State. 45

46. Lean Rule 1-Structure every activity: 1.A Quote Master allows us to structure the activity so that ALL of the information is located in one document and will be located in one place for availability (Cloud ). 2.Quote Masters are used in an Enterprise Resource Planning System-ERP to capture all of the costs, purchases, non-recurring costs, and other pertinent information about the success or failure of booking a job. 3.It defines each step of the process and ensures that there is a Workflow - Standard Work practice that is the standard for your organization- chapter. Standard Work: creates processes and procedures that are repeatable, reliable, and capable. 4.Ensures that there is visibility to all of the members on the chapters board of directors team 46

47. Lean Rule 2-Clearly connect every customer and supplier: 1.Using a simple Excel Quote Master Process improves the Customer – Supplier relationship and eliminates waste in the process. 2.Clearly defines the who, what, where, when, and how and ensures that there is High Level of agreement between customers and suppliers. This includes all internal and external customers and suppliers. 3.Ensures that the your Supply Chain and Channel Partners are working together to meet the customers expectations of the products and services you offer and deliver to them. 4.A better and consistent way of understanding your customer-supplier performance. 47

48. Lean Rule 3-Specify Flow path: Quote Master Template 1.This template defines how the Flow Path is defined 2.It tells you the who, what, where, when, and how this order is to be executed 3.Has a Beginning and End! 4.Can be then used to analyze your sales and customer satisfaction 48

49. Lean Rule 3-Specify Flow path continued: Where do we keep all of this stuff???? Now that we have the ability to store remotely on Cloud Servers, an APICS Chapter can now store this information in one place, have access by all our some of the directors on the chapters board of directors, and ensures that it not located in many locations with no backup process! What is Dropbox? "Your life's work, wherever you are." Dropbox is a free service that lets you bring all your photos, docs, and videos anywhere. This means that any file you save to your Dropbox will automatically save to all your computers, phones and even the Dropbox website.computersphones Dropbox website Dropbox also makes it super easy to share with others, whether you're a student or professional, parent or grandparent. Even if you accidentally spill a latte on your laptop, have no fear! You can relax knowing that Dropbox always has you covered, and none of your stuff will ever be lost. 49

50. Lean Rule 3-Specify Flow path continued: Now that we have our documents-Quote Masters in one location for all to see, we can now use online Microsoft Office services to modify and review files from this server. This can NOW be done on Tablets both iPad and Android units: This is FREE service and you can send any document to others via your preferred email account on your tablet and laptop. Thus you have a wide range of mobility to get the job done wherever you are and you are not tethered to a cable and or Brick and Mortar location. Can be used at Hot Spots 50

51. 51 Quote Master Process-Procedure Purpose: The Quote Master will be used to follow the progress and information of jobs that are booked by the APICS New York City-Long Island Chapter. The Quote Master will compile all of the data and transactions in one document and will provide an Electronic Workflow to insure that the process moves smoothly and accurately. Tactical Groups Affected: This process-procedure will be the responsibility of the Requestor, Purchaser, and Treasurer personnel of the APICS New York City-Long Island Chapter. History and Performance Metrics: This Quote Master Process-Procedure will provide the APICS New York City-Long Island Chapter to understand their customers buying habits, what products are high and low volume sellers, the increase in Material Costs and Labor Costs, and what the Profit and Loss outcomes are. In addition, when costs increase for both labor and materials, we will be better prepared to make adjustments that are equitable for both the Customer and the APICS New York City-Long Island Chapter. Quote Master Process-Procedure Please refer to the Quote Master Form. The Quote Master Form is an Electronic form that will be sent to each of the parties that are responsible to input the necessary information. The parties that responsible for filling out this form are; Requester, Purchaser, and Treasurer. The form will be sent via an email attachment to the next party and the final recipient will be Treasurer where all of the required data for Profit and or Loss will be disclosed. The lead time for this entire process is five (5) business days. The profit or loss information will be provided once all of the details are sent to the Treasurer. Requester: Will be required to enter their name, the date of the request, and their APICS Membership Number. This is required if the materials being ordered are going to be delivered to their home or place of business. The material description, SKU, and quantity needed will be required. This will help speed up the ordering process. Last the Project for whom the materials are being purchased for and the Need Date needs to be entered. Purchasing: The name of the person and APICS Membership Number of the person placing the order is required before any material can be purchased from APICS and the Holmes Corporation. The place from whom the material is being purchased from and the APICS New York City-Long Island Chapters account number needs to be entered. The Number Purchased and the Cost Per Unit is then entered and the Total Cost for the material is then entered. The Shipping and Handling cost is entered and the Total Cost for

52. 52 Lean Rule 4-Improve through experimentation at the lowest possible level possible towards the Ideal State: 1.After utilizing the process ask yourself and Reflect on: What worked? What didnt work? What changes need to be made? How do I execute the process-procedure better? Last…………………how does the process get us closer to the IDEAL STATE? The Ideal State is: An ideal state is delivering what the customer wants, when they want it, at a price they are willing to pay, with zero defects, zero waste, and where everyone is safe.

53. 53 1.Structure every activity 2.Clearly connect every customer and supplier 3.Specify every flow path 4.Improve through experimentation at the lowest possible level possible towards the Ideal State Also, if you should want to explore and use this process, you will be able to apply the implementation towards your C-BAR submission for the Narrative-Innovation portion of the C-BAR submission. Extra points for your chapter!!!!! ………..Lets Review

54. 54 …………………………and Thats All Folks!!!!!!!!!!!!!! Q and A ? THANKS!!!!!!!!!!