The GSI’s Production Quality Control

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Summary

Game Shop Inc (GSI) had better production quality control than billing performance due to the lack of controls in the billing process. The company did not have written billing instructions, and the project managers who handled billing had no financial background. This led to overbilling, double billings, and incorrect calculations of rebates, causing unhappy customers. Management had not paid attention to billing performance until customers complained, and top management had to step in to correct the errors. To improve the billing process, GSI developed a billings performance scorecard to track each business unit’s performance, held meetings for low-performing business unit managers, issued Process Corrective Action Reports to identify software glitches and broken procedures, and focused on correcting flaws in the design of the processes. The billing scorecard and improvement efforts helped to reduce billing error rates significantly.

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Game Shop, Inc Why was GSI’s production quality control better than its billing performance? The GSI’s production quality control had checks that had been built into the system. There were a number of personnel in place to ensure that these controls were in place and working properly at any point in time. There were no controls in place for the billing process, the company did not have a set of written billing instructions, and the managers did not know how to use the billing instructions available to them. The billing process was handled by the GSI Project managers who had no financial background.

The mangers focused more on production and ensuring that orders were shipped. A lot of controls were missing; the billing system had several flaws. Billing paper could only be submitted once a week. Reports took a long time to down load onto a computer. The billing and IT departments were resistant to a change in the system as the employee had become too comfortable with the new system and were afraid of job losses. Why would you include billing performance among the short list of critical success factors for GSI? If so Why has it apparently not received much attention from management up until now?

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If not why all the concern now. Customers had been overbilled because of double billings and incorrect calculations of rebates. Customerss were not happy and top management had to step in to correct these errors. The project managers did not track project changes and did not turn in billing paper work in a timely manner. Billing could be done more than once simply because it was not documented properly in a prior period. The project managers did not understand the importance of correct and timely billing Evaluate the billing improvement effort and each of the elements of the system that emerged.

Comment specifically on the billing score card, detention meetings, P- CARs, and any other elements that you believe are relevant. The billing improvement effort focused on strengthening the billing process. A billings performance scorecard was developed to track each business unit’s performance. The managers of business units who performed low in the score card were invited to a meeting which was intended to help these managers to understand and correct the issues in the business unit.

Another motivational tool that was used to evaluate the billing performance is the Process Corrective Action Reports. These reports were issued to managers who had made billing errors in order to identify software glitches and broken procedures. The report identified and described where a process went wrong. The Process Corrective Action Reports focused on the processes rather than individuals in order to correct the flaws in the design of the processes. The billing score card helped to ensure that the billings were done on time and the billing error rates dropped significantly.

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