Southwest Airlines :  How to Make the Great Leap from Paper to Digital   Laura Berry Manager-Accounts Payable Southwest Ai...
Learn How To <ul><li>Pass a Federal or State audit </li></ul><ul><li>Eliminate document storage costs </li></ul><ul><li>El...
Agenda <ul><li>Business Case -  why did we do this? </li></ul><ul><li>Project Scope - what did we do? </li></ul><ul><li>Sy...
Business Case <ul><li>Many requirements for access to AP documents </li></ul><ul><ul><li>budgeting, auditing, reporting, a...
Business Case (continued) <ul><li>Disallowed deductions result in company liability </li></ul><ul><ul><li>amount of deduct...
Business Case - Objectives <ul><li>Primary Objective </li></ul><ul><ul><li>Eliminate exposure to audits </li></ul></ul><ul...
Agenda <ul><li>Business Case -  why did we do this? </li></ul><ul><li>Project Scope - what did we do? </li></ul><ul><li>Sy...
Project Scope <ul><li>Implement an electronic repository for complete and accurate storage of all AP documents </li></ul><...
Agenda <ul><li>Business Case -  why did we do this? </li></ul><ul><li>Project Scope - what did we do? </li></ul><ul><li>Sy...
System Architecture <ul><li>New System Development </li></ul><ul><ul><li>Web-based access application </li></ul></ul><ul><...
System Architecture – High Level
Transaction Capture
Image Capture
InputAccel - Indexing vendor vendor
InputAccel – Custom Features <ul><li>Custom DLL for Documentum </li></ul><ul><ul><li>Update fields </li></ul></ul><ul><ul>...
Bar Code Generator
Access
Web Application – Advanced Search
Web Application – Search Results
Web Application – Document Detail vendor
IMR Alchemy Document Viewer
Agenda <ul><li>Business Case -  why did we do this </li></ul><ul><li>Project Scope - what did we do </li></ul><ul><li>Syst...
Business Processes
Business Process - Security <ul><li>Confidential information is in the documents </li></ul><ul><ul><li>Journal entries: sa...
Agenda <ul><li>Business Case -  why did we do this? </li></ul><ul><li>Project Scope - what did we do? </li></ul><ul><li>Sy...
Results – Eliminate Audit   Exposure <ul><li>100% passing grade on all internal audits  </li></ul><ul><ul><li>48 hours to ...
Results – Access to Documents <ul><li>All documents available online </li></ul><ul><ul><li>web based access </li></ul></ul...
Results – Improved Accuracy <ul><li>100% auditing of invoices </li></ul><ul><li>Batches are checked for total amounts and ...
Results – Secondary Objectives Achieved <ul><li>Paper documents are only kept 90 days (plans on 30) </li></ul><ul><li>Manu...
Q & A
Summary - Lessons Learned <ul><li>Test your scanning process </li></ul><ul><ul><li>use real invoices and volumes </li></ul...
Summary - Lessons Learned (continued) <ul><li>Batch creation and prep  </li></ul><ul><ul><li>lots of training required </l...
Audio of this Presentation will be available at  dm_developer , an online community for Documentum www.dmdeveloper.com Reg...
Presentations Will Be Available  on the Momentum Las Vegas Website   www.momentumlive.com Password:  jackpot More Question...
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Southwest Airlines: How to make the great leap from paper to digital

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Momentum Las Vegas 2005

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Southwest Airlines: How to make the great leap from paper to digital

  1. 2. Southwest Airlines : How to Make the Great Leap from Paper to Digital Laura Berry Manager-Accounts Payable Southwest Airlines Rich Rans Practice Manager Blue Fish Development Group
  2. 3. Learn How To <ul><li>Pass a Federal or State audit </li></ul><ul><li>Eliminate document storage costs </li></ul><ul><li>Eliminate errors in Accounts Payable (AP) data entry </li></ul>
  3. 4. Agenda <ul><li>Business Case - why did we do this? </li></ul><ul><li>Project Scope - what did we do? </li></ul><ul><li>System Architecture - how does it work? </li></ul><ul><li>Business Processes - what had to change? </li></ul><ul><li>Results – where we are today? </li></ul><ul><li>Q / A </li></ul><ul><li>Summary </li></ul>
  4. 5. Business Case <ul><li>Many requirements for access to AP documents </li></ul><ul><ul><li>budgeting, auditing, reporting, accounting… </li></ul></ul><ul><li>Agencies request documents for tax audits </li></ul><ul><li>Manual retrieval process </li></ul><ul><ul><li>hours of research, copying, sorting, filing, storing, and delivery </li></ul></ul><ul><li>When documents cannot be located </li></ul><ul><ul><li>penalties are assessed </li></ul></ul><ul><ul><li>productivity is lost </li></ul></ul><ul><li>Litigation has heightened the importance of document retention </li></ul>
  5. 6. Business Case (continued) <ul><li>Disallowed deductions result in company liability </li></ul><ul><ul><li>amount of deduction </li></ul></ul><ul><ul><li>20% penalty can be assessed </li></ul></ul><ul><li>Southwest Airlines (SWA) had been unable to produce </li></ul><ul><ul><li>5-10% for State audits </li></ul></ul><ul><ul><li>25% for Federal audits </li></ul></ul><ul><li>The exposure is huge </li></ul><ul><ul><li>Estimated $2.5 million for a Texas State audit </li></ul></ul><ul><ul><li>Estimated $12 million for a Federal audit </li></ul></ul>
  6. 7. Business Case - Objectives <ul><li>Primary Objective </li></ul><ul><ul><li>Eliminate exposure to audits </li></ul></ul><ul><li>Secondary Objectives </li></ul><ul><ul><li>Increase accuracy of transaction entry </li></ul></ul><ul><ul><li>Improve productivity of AP staff </li></ul></ul><ul><ul><li>Reduce document storage costs </li></ul></ul>
  7. 8. Agenda <ul><li>Business Case - why did we do this? </li></ul><ul><li>Project Scope - what did we do? </li></ul><ul><li>System Architecture - how does it work? </li></ul><ul><li>Business Processes - what had to change? </li></ul><ul><li>Results – where we are today? </li></ul><ul><li>Q / A </li></ul><ul><li>Summary </li></ul>
  8. 9. Project Scope <ul><li>Implement an electronic repository for complete and accurate storage of all AP documents </li></ul><ul><li>Provide a mechanism to search, retrieve and view any requested document / transaction </li></ul><ul><li>Provide the ability deliver documents to any auditing agency in a timely manner and in a usable format </li></ul>
  9. 10. Agenda <ul><li>Business Case - why did we do this? </li></ul><ul><li>Project Scope - what did we do? </li></ul><ul><li>System Architecture - how does it work? </li></ul><ul><li>Business Processes - what had to change? </li></ul><ul><li>Results – where we are today? </li></ul><ul><li>Q / A </li></ul><ul><li>Summary </li></ul>
  10. 11. System Architecture <ul><li>New System Development </li></ul><ul><ul><li>Web-based access application </li></ul></ul><ul><ul><li>Custom Indexing functionality </li></ul></ul><ul><li>Technologies Incorporated </li></ul><ul><ul><li>EMC 2 Documentum Content Server </li></ul></ul><ul><ul><li>EMC 2 Documentum WDK </li></ul></ul><ul><ul><li>Captiva Software InputAccel ® </li></ul></ul><ul><ul><li>Blue Fish DIXI™ </li></ul></ul><ul><ul><li>IMR Alchemy ® </li></ul></ul><ul><ul><li>Ghostscript (PDF generation) </li></ul></ul><ul><li>Integrated with Existing Applications </li></ul><ul><ul><li>Computer Associates Consolidated Application System (CAS) </li></ul></ul><ul><ul><li>Project Accounting </li></ul></ul><ul><ul><li>Cognos Impromptu ® </li></ul></ul>
  11. 12. System Architecture – High Level
  12. 13. Transaction Capture
  13. 14. Image Capture
  14. 15. InputAccel - Indexing vendor vendor
  15. 16. InputAccel – Custom Features <ul><li>Custom DLL for Documentum </li></ul><ul><ul><li>Update fields </li></ul></ul><ul><ul><li>Warnings for audit failures </li></ul></ul><ul><ul><li>Counts and totals </li></ul></ul><ul><li>Barcode reading </li></ul><ul><ul><li>Document type identifiers </li></ul></ul><ul><ul><li>Document dividers </li></ul></ul><ul><ul><li>Single page document flag </li></ul></ul><ul><li>Backup documents </li></ul><ul><li>Multi-Record Indexing </li></ul>
  16. 17. Bar Code Generator
  17. 18. Access
  18. 19. Web Application – Advanced Search
  19. 20. Web Application – Search Results
  20. 21. Web Application – Document Detail vendor
  21. 22. IMR Alchemy Document Viewer
  22. 23. Agenda <ul><li>Business Case - why did we do this </li></ul><ul><li>Project Scope - what did we do </li></ul><ul><li>System Architecture - how does it work </li></ul><ul><li>Business Processes - what changed </li></ul><ul><li>Results – where we are today </li></ul><ul><li>Q / A </li></ul><ul><li>Summary </li></ul>
  23. 24. Business Processes
  24. 25. Business Process - Security <ul><li>Confidential information is in the documents </li></ul><ul><ul><li>Journal entries: salary, bonus, stock options </li></ul></ul><ul><ul><li>Expense reports: credit card #, social security # </li></ul></ul><ul><ul><li>Garnishments </li></ul></ul><ul><ul><li>Vendor documents: tax ID, social security # </li></ul></ul><ul><li>Expanded access without exposing confidential information </li></ul>
  25. 26. Agenda <ul><li>Business Case - why did we do this? </li></ul><ul><li>Project Scope - what did we do? </li></ul><ul><li>System Architecture - how does it work? </li></ul><ul><li>Business Processes - what changed? </li></ul><ul><li>Results – where we are today? </li></ul><ul><li>Q / A </li></ul><ul><li>Summary </li></ul>
  26. 27. Results – Eliminate Audit Exposure <ul><li>100% passing grade on all internal audits </li></ul><ul><ul><li>48 hours to less than 1 hour </li></ul></ul><ul><li>Accounting errors minimized </li></ul><ul><li>Ability to deliver to auditors </li></ul><ul><ul><li>bulk printing </li></ul></ul><ul><ul><li>CD distribution </li></ul></ul>
  27. 28. Results – Access to Documents <ul><li>All documents available online </li></ul><ul><ul><li>web based access </li></ul></ul><ul><ul><li>security is in place </li></ul></ul><ul><ul><li>simple, advanced and bulk search capabilities </li></ul></ul><ul><li>Electronic and paper transactions integrated </li></ul>
  28. 29. Results – Improved Accuracy <ul><li>100% auditing of invoices </li></ul><ul><li>Batches are checked for total amounts and counts </li></ul><ul><li>Error Resolution functions facilitate troubleshooting </li></ul><ul><li>Reports provided for missing documents and other errors </li></ul>
  29. 30. Results – Secondary Objectives Achieved <ul><li>Paper documents are only kept 90 days (plans on 30) </li></ul><ul><li>Manual retrieval of electronic documents is eliminated </li></ul><ul><li>Ability to email AP documents </li></ul><ul><li>AP staff productivity improved </li></ul><ul><ul><li>from 6 to 3 auditors </li></ul></ul><ul><ul><li>no file room associate </li></ul></ul><ul><ul><li>more documents being handled </li></ul></ul><ul><ul><ul><li>journal entries, administrative documents, etc… </li></ul></ul></ul>
  30. 31. Q & A
  31. 32. Summary - Lessons Learned <ul><li>Test your scanning process </li></ul><ul><ul><li>use real invoices and volumes </li></ul></ul><ul><ul><li>use same personnel and process </li></ul></ul><ul><ul><li>use actual production scanner </li></ul></ul><ul><li>Scanner was biggest challenge </li></ul><ul><ul><li>different specs for landscape vs. portrait </li></ul></ul><ul><ul><li>good scanner required for heavy barcode reading </li></ul></ul><ul><ul><li>went from 2 cheap to 1 expensive primary </li></ul></ul><ul><ul><ul><li>Ricoh IS450 SE-DE-VRS Scanner to Bell & Howell Copiscan 8000 </li></ul></ul></ul>
  32. 33. Summary - Lessons Learned (continued) <ul><li>Batch creation and prep </li></ul><ul><ul><li>lots of training required </li></ul></ul><ul><ul><li>barcode printing – need high quality printer </li></ul></ul><ul><ul><li>most barcode printing done at print shop </li></ul></ul><ul><li>Cycle increased to 45 days </li></ul><ul><ul><li>caused by scanning and prep problems </li></ul></ul><ul><ul><li>down to 3 days </li></ul></ul>
  33. 34. Audio of this Presentation will be available at dm_developer , an online community for Documentum www.dmdeveloper.com Register to win an iPod nano from Blue Fish Development Group in Booth 530
  34. 35. Presentations Will Be Available on the Momentum Las Vegas Website www.momentumlive.com Password: jackpot More Questions? Meet the Speakers Mixers Tuesday Wednesday Thursday Solutions Expo Hall – Level 1 Solutions Expo Hall – Level 1 South Pacific Ballroom – N. Conf. Center 6:00 pm – 7:00 pm 5:00 pm – 6:00 pm 8:00 am – 9:00 am

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