project scope

pping department at the Japan location.
             Several methods used when reviewing the cost implications and accurate cost projections of the company by the project team were through the use of surveys, interviews, and company documentation such as reports, records, and correspondence. These records provided additional information on lost revenue concerning mail and shipping charges (regular and express), faxes, phone charges, churn, rebates, and discounts.
             Through the research conducted of mail records, such as the electronic mail posting machine and invoices from express mail companies such as Federal Express and UPS, the project team established each office was spending over $2,000 a month in shipping expenses, which equated to be between 20-30 packages per week (specifics are discussed later in the Current System Costs section located on page 14). Faxing costs were determined also by reviewing printed reports from each office's fax machine that explicated monthly costs of long distance faxes of over $100 dollars a month for each office. This equated to about 78 faxes monthly per office at a rate of 1.3 cents per fax. Phone charges were also reviewed through company phone records discovering the expense to each office on a monthly basis was roughly $1500. Upon further investigation, as explained later, phone charges were about 10%, or $150 higher, than what the company would have liked, due to unnecessary phone calls required to customers as a result of the failures of the current system (i.e., unsatisfied customers, shipment delays, etc.). To help alleviate dissatisfied customers and churn, the company also was losing revenue in rebates and discounts given to dissatisfied customers. This information was obtained through customer service records of rebates and discounts. On an average, each office was spending approximately 2.5% of its annual revenue towards rebates and discounts. This equated to each office having provided about...

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