Activity Based Scoping and Pricing for Document Imaging Projects

INTRODUCTION

SRIIA TECHNOLOGIES SALESMANAGER

Activity Based Cost Systems

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Scan Conversion of Hardcopy / Analog Media to Digital Image

Store Database / Repository for Electronic Records

IndexCreation of Searchable Databases and Index Systems for Digital Images & Records

Retrieve Secure, Accurate and Global access to Electronic Records

IntegrateLink / Connect various databases at levels from simple DB ping-return to fully update-able connections.

Archive Archiving & Storage for Digital and Hardcopy Information

Records Management Sectors

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Records Management Sectors

ACME Business Services Company

Retrieve

Index

Integrate

Archive

Scan

Store

Superior Selling Position

Move from selling sectors to

a “business services” model.

Business Challenges

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• Superior Selling Position;

• Document Imaging Services

• OEM - Document Management Software, Content Management Software, Scanners, Servers – Other Hardware

• Consulting Services

• Specialty Software Development

• Professional Services

• BPO (Business Process Outsourcing)

• Hosting

Account for It

Build ItSell It

Business Delivery Model

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Mixed COGs

Lease

Build

Buy

Advantages Using SalesManager

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1. Account for all SKUs

2. Account for all Lists and Fields

3. Configurable for varied operations environments

4. Configurable for team leads, shift leads, training and remediation

5. Configurable Autonomic COGs

6. Itemized COGs for each step in operations workflow (operations based cost drivers )

Business Challenges

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• Conventional Cost Accounting;

• Units of output

• Direct labor hours

• Various Costs - ?

• End of Month – hopefully (Income > COGs)

• Problems

• Biased, materially misleading cost estimates

• Omission of operations based cost drivers may distort the investigation of the likely effects on costs of changes in operating strategies.

SalesManager Base Architecture

List / Fields

Complete Sales Book – Lists and Fields and Cost Drivers;

Record Types

Not Used

Abstract of Judgment

Affidavit of Claim

Assignment of Mortgage

Index Assignment of Mortgage

Bill of Sale

Birth and Death

Book of Plats

Brands

Certificate of Cond Sale

Certificate of Sale

Chattel Mortgages

Civil Court

Commissioners Journal

Media Types

Not Used

16mm-Roll Film Diazo 215

16mm-Roll Film Silver 100

16mm-Roll Film Silver 215

35mm-Roll Film Diazo 100

35mm-Roll Film Silver 100

Aperture Card

Binders

Cabinet

COM Microfiche: 42x - up to 208

frames

COM Microfiche: 48x - up to 270

frames

Exported Database 1

Exported Database 2

File Box Legal

Software

Not Used

DataCap-Fastdoc Capture

DSI-PaperFlow

DSI-PVE Capture

Kofax-Express

LF-Intuition

LF-Quick Fields

ReadSoft-Document

Software-Enterprise Content Management

Not Used

DSI-PVE Enterprise (Single)

DSI-PVE Enterprise (10-20)

DSI-PVE Enterprise (21-50)

DSI-PVE Enterprise (51-200)

DSI-PVE Enterprise (201-500)

DSI-PVE Enterprise (>501)

DDMS- Enterprise Edition with Workflow

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SalesManager Base Architecture

SKU Management

Operations

SalesManager Base Architecture

Example – Human Powered Process (HPP)

Step 2: 2nd Pass

+Step 2: Audit

+Step 2:

+

• Indexing-2nd

Pass

• Indexing-

Audit

Ratio = 2:1XX Ratio = 10:1

Step 2: QC

• Indexing X • Project QC @ established rate

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Operations Based Cost Drivers

Step 1: 1st Pass

• Indexing

a.

Step 1: 1st Pass

• Indexing

b.

Step 1: 1st Pass

c.

SalesManager Base Architecture

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Operations Based Cost Drivers

Team Lead

FTEs

1 2 3 4

5 6 7 8

9 10 11 12

13 14 15 16

Team Lead / Shift Lead Labor Calculations

Example for calculating Team Lead cost burden;

FTE Hourly Pay Rate… $13.50Team Lead Pay Rate…. $16.50

FTE Indexing Rate….. 59.15 RPH16 FTE @ 59.15 RPH…. 946 RPH

13.50 * 16 = $216.00

→ (COGs-FTE) 216.00 / 946 = $0.22

→ (COGs-TL) 16.50 / 946 = $0.017

→ (COGs FTE + TL) = $0.237

SalesManager Base Architecture

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Methodology: Training / Remediation

• Training

• Determine the number of training hours for each new project;

• Total Hours

• Weekly Hours

• Remediation

• Determine the number of remediation hours for each new project;

• Total remediation hours

=Autonomic Cost Drivers

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- COGs = 1,125.00

- COGs = 1,600.00

Implementation = 1 ½ hours Training = ½ hour

Implementation = .75 hoursTraining – Admin = 8 hoursTraining – Trainer = 4 hours

Training – User = 2 hours

Operations

SalesManager Base Architecture

• Indexing

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Cost Drivers to COGs

Inventory

13.50 / 655 = .021

Document Prep

13.50 / 3,000 = .005

Document Scanning

13.50 / 5,500 = .002

Document Grouping

13.50 / 525 = .026

.021

COGs

.026.028.054Indexing

13.50 / 655 = .021

.075

SalesManager Base Architecture

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Methodology: Benchmarking

• Benchmarking

• The process of improving performance by continuously identifying, understanding, and adapting outstanding practices and processes found inside and outside an organization (company, public organization, University, College, etc.).

• Pioneered by Xerox Corporation in the 1979s…

SalesManager Base Architecture

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Methodology: Benchmarking

• Benchmarking-why?

• Camp *4+ states that “whether it is internal, competitive, or noncompetitive, benchmarking should be corporate wide, comprehensive, controlled, continuous, and an integral part of the planning process.” In this way, organizations can use benchmarking to simplify business processes and thereby meet true customer requirements, reduce training and labor costs, reduce process redundancies, make processes more predictable and repeatable, and be more sensitive to changing customer requirements.

• *Camp, R.C. (1989), “Benchmarking: The Search for Industry Best Practices That Lead to

• Superior Performance,” Quality Progress, Vol. 22, No. 5, pp. 66-68.

Methodology: Piece Rate Calcs

• Personal needs

• Fatigue

• Unavoidable Delays Allowance

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*US DoL suggests 15% for PD&F*US OPM - Hourly and biweekly rates of pay for most Federal civilian employees are computed as required by 5 U.S.C. 5504(b) – 2,087 work hours annually.

FTE Rate = 13.50Process Benchmark = Tn

Tn = 65 RPH (records per hour)

Apfd = .09

Tstd = 59.15 RPH Piece Rate Quota

13.50 / 59.15 = .228 per record

Sales

SalesManager Base Architecture

Sales Scoping is fixed, repetitive process;• Primarily dropdown and radio button driven

process

Only “data entry” is at;• Customer Information• Project Information• Project Scope• Index Books Detail

• Project QC @ established rate

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SalesManager Base Architecture

Methodology: Pricing Workflow

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Sales

• Scope, information gathering

Admin

• Production Manager (ProdM)

Admin

• Project Manager (PM)

Admin

• Development Manager (DevM)

Admin

• Sales Manager (SalesM)

Customer Pricing Socialization

• Proposals

• SOWs

• RFP Responses

Example Sales Scenario

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Scenario 1: Medical Records (Boxes)

• Patient Records (Medical Records)

• Implementing a multi-facility integrated EMR system

• Select to begin the backfile imaging of analog records in preparation for a completely digital records environment.

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Scenario #1: Hospital Medical Records

• Patient Records (Medical Records)

• Interim solution – hosting until EMR “go-live”.

• Estimated go-live in 4-6 years;

• Scanning solution for day-forward imaging.

Scenario 1: Medical Records (Boxes)

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• Scope

Scenario #1: Hospital Medical Records

Facility Doc Type Date Range Doc ID Range Media Type Media

Volume

Page Per Pages Per

Record

Hospital

Storage #2

Medical Records 2002-2010 0134528

0132878

Banker’s Box

(Letter) (8 ½ x 11)

1,601 3,000 45

Scenario 1: Medical Records (Boxes)

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Scenario #1: Hospital Medical Records

• Sales Notes for Processing:

• Pre-Scan Services

• Inventory

• Inventory to be done on-site at storage facility.

•

Scenario 1: Medical Records (Boxes)

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Scenario #1: Hospital Medical Records

• Imaging Services Detail:

• Auto Deskew

• Auto Crop

• Auto Despeckle

• Skeleton Filter

• (DSI system will allow for original final image for viewing)

• OCR for Full Text

Scenario 1: Medical Records (Boxes)

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Scenario #1: Hospital Medical Records

• Document Grouping (Stapling)

• Ave record is 45 pages.

• Document Creation Stapling

• Create barcodes for stapling

• Barcode sheets are to be deleted upon recognition, marking new

Scenario 1: Medical Records (Boxes)

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Scenario #1: Hospital Medical Records

• Indexing (from existing database)

• Hospital has database containing full indexing information.

Scenario 1: Medical Records (Boxes)

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Scenario #1: Hospital Medical Records

• Indexing (from existing database)

• Each patient file should have a cover page containing the following minimum information;

• Patient Name

• Patient Number

• Intake Number

• Admin Date

• Hospital Number

• Use auto-indexing to pull data from cover page for match & merge with existing database.

Scenario 1: Medical Records (Boxes)

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Scenario #1: Hospital Medical Records

• Data Storage

• Hosting - Provide enterprise hosting for all images. Hosting may end upon EMR implementation – to be negotiated. (5 year contract)

• Analog Storage

• Create 16mm roll film for archiving

• Provide box & container storage. (5 year contract)

Scenario 1: Medical Records (Boxes)

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Scenario #1: Hospital Medical Records

• System Sales:

• Departments;

• Ambulatory

• Surgical Center

• General Practice

• 10 Capture Stations

• Capture Software

• Capture Hardware

• Workstations w/ monitors

Scenario 1: Medical Records (Boxes)

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Phase 1

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Sales: Project Scoping

Scoping Exercise (Assume Wizards Set-Up)

• Lists, Fields

• Software, Hardware

• Supplies, 3rd Party services

• Travel

• Production Process elements

• Performance Benchmarking

• PFD

• Tstd, Tn (quotas)

• Training, Remediation, Team Lead (TL) Ratio

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1. Customer / Project Information

• Customer Info;

• Identify Sponsors and Stakeholders – no short-cuts; many people rely on this info.

• State can determine Professional Services billing rate

• Project Information

• Project name – help everyone out – name it!

• Type of response

• Required response date

• Projected launch date

• In-house / on-site1/24/2014

2. Project Scope

• Source Document Profiles;

• Document Type

• Media Type

• Document Year; From – To: (ad-hoc)

• Document ID; From – To: (ad-hoc)

• Number of Units: (ad-hoc)

• Number of Items per Unit: (ad-hoc)

• Page Per Document/Record: (ad-hoc)

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3. Inventory

• Must have inventory;

• Existing from customer (spreadsheet, database, word doc…)

• Done by us?

• In-house or on-site

• If film, need Tri-Check labels?

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4. Document Prep

• In-house / on-site;

• Identify by established category (1 – 4)

• Bankers box or other

• Number of pages per

• Page size / quality

• Bindings, folders, books

• Need to create barcodes sheets / labels

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5. Volume Edits

• Only step in process that will edit the delivered number of images

• Duplex Scanning

• Automated / manual removal of selected pages (i.e. –cover sheets etc…)

• For real property records / vitals: page duplication for run-ons, certificate extraction for births / deaths…

• Etc…

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6. Auto-Imaging Processing

• Deskew, Despeckle, Auto-Cropping

• OCR

• Skeleton Filter

• Automated Redaction Processing

• If redaction, don’t forget about verification

• Other…

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7. Manual Imaging Processing

• Zonal Enhancements

• Manual Cropping

• Dual Polarity Reversal (Photostats)

• Text Enhancement

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8. Document Creation (Stapling)

• Manual

• Manually identifying first / last for each record / document

• If Match & Merge, get copy of db for analysis prior to pricing

• Automated

• For automated from barcode sheet or label, determine if sheet / label creation pricing is required

• Include barcode pricing if required

• If creation from database, get copy of db for analysis prior to pricing 1/24/2014

9. Indexing

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• Manual

• Associate an existing manual indexing type (1 – 4) and associate with each media type

• If Match & Merge, get copy of db for analysis prior to pricing

• Automated

• For automated from barcode sheet or label, determine if sheet / label creation pricing is required

• Include barcode pricing if necessary

• If creation from database, get copy of db for analysis prior to pricing

9.a. Indexing (cont.’)

• Government – Index Books

• Look at source materials and get image examples for;

• Number of pages per book

• Number of lines per page

• Number of characters per line

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10. Film Services

• Film Assessment needed?

• Select category by service level requested

• Images archived to film?

• Size of film for creation

• If day-forward service, determine duration for contract

• Duplication

• 1st Generation copy, Dupe?

• If day-forward service, determine duration for contract

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11. Vault Storage

• Container or Shelf?

• Duration for contract?

• Microfilm (roll, fiche, aperture cards)

• Existing

• Newly created from project images

• Boxes (Letter, Legal, Other)

• Books (size)

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12. Digital Storage

• Active Data – Hosting

• Source Docs for image creation

• Select hosting product and service level (by volume in GB)

• Determine duration for contract

• Off-Line Data Hosting

• Source Docs for image creation

• Select storage product and service level (by volume in GB)

• Determine duration for contract1/24/2014

Establish default image size for calculations

13. 3rd Party Services

• 3rd party services for services on media types entered into scope

• Scanning (film, paper)

• Special Imaging Services

• On-Site, travel costs

• Other

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14. Supplies

• Supplies

• CD mailer kits

• USB project drives

• Tapes / back-up supplies

• Microfilm supplies

• Boxes

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15. Warehouse / Logistics

• Warehouse

• Faxing, Document / file retrieval

• Scan-on-demand

• Document Purge, Document Destruction

• CD duplication, Other

• Logistics

• Pick-up delivery

• Shipping project media

• Shipping project drives, Other

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16. System Sales

• Capture Hardware

• Type and level of scanner

• Workstations – other hardware

• Workstations

• Monitors

• Capture Software

• Manufacturer

• Professional Services

• Installation

• Client Training 1/24/2014

Phase 2

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Sales Submits Project for Admin Review

1. Ops / Production Manager Review

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Scanner Settings

•Image Format

•DPI

•Duplex

FTE Selections

•Classifications

•AM / PM allocations

Quotas

•Production Manager

•FTEs

PFD

•Update Unavoidable Delays Allowance –check to see review schedule

Training / Remediation

•Ratio to total labor hours

Team Leads

•Ratio of FTEs per Team Lead

Default: Review over-all scope and notes.

2. Project Manager Review

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Project Durations•Conversion Project

•System Implementation

Project Management Hours

•Conversion

Project Management Hours

•System Implementation

Travel Costs

• Inventory

• Pilot Phase

• Project Meetings

On-Site Calculations

• Mileage Costs

• Set-up, daily fees

Client Training

• Remote

• On-site

Default: Review over-all scope and notes.

3. Development Manager Review

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Default: Review over-all scope and notes.

Auto-Imaging Dev Hours

Auto-Stapling Dev Hours

System Install

Tech Support and Other

Auto-Indexing Dev Hours

Auto-Redaction Dev Hours

4. Sales Manager (Final) Review

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Default: Review over-all scope and notes.

Scope

•What kind

•How many

•Volume Edits

System Install

•Software

•Hardware

•Services

Review on-site details

•Travel details

•On-site duration

•Distance

Pricing

•Mark-Up

•Margin

•Per Unit

Storage Services

•Hosting

•Analog

Film Services

•Writing

•Duping

•Assessment

Q & A

• Thank you…

• Kevin Williams, CDIA+

• Principal

• kevin.williams@sriiatech.com

• 512.333.4059

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