Date of Defense
Date of Graduation
Engineering, Design, Manufacturing and Management Systems
Managerial errors in the form of late entry separations result in operating inefficiencies and excess costs to a company, as reconciliations will need to occur between paychecks issued and active employees versus separated employees. This is an issue that is currently plaguing Whirlpool Corporation (Whirlpool) in their U.S. operations. After the implementation of a plan to restructure their Human Resources (HR) Department and payroll unit to achieve HR Excellence, Whirlpool experienced problems with their payroll process resulting in inaccurate payments to separated employees. This senior project designed a two-phase process, first phase being prevention and second phase being a lean recovery process, that is simple, effective, and efficient with the goal to eliminate inaccurate payments to separated employees; reducing reconciliation and collection costs to the company.
To gain an understanding on Human Resource operations with Payroll, extensive research was done prior to attacking the issue. For Phase one, surveys, analyzation of the process, Pareto charts, and 5 Why’s analysis were utilized to help the group understand the root cause as well as in creating their recommendations. For Phase two, survey to HR Specialists, process mapping and design, on-site interviews as well in person observations were used in helping design the recommendations. To weigh the recommendations, the group conducted sensitivity and cost analysis based on the chosen criteria which were: ease of implementation, sustainability, user friendly, and reduces reconciliation fees. After weighing the solutions, the group chose to implement an online prompt reminder for Phase one saving Whirlpool up to $177,000. For Phase two, the group implemented an ideal up to date process that is visual and standardized, as well an improved communication plan between the People Leaders and HR Specialists at Whirlpool. The group strongly believes that implementation of these recommendations would benefit Whirlpool for years to come.
Wright, Logan, "An Overpayment and Improved Reconciliation Process" (2018). Honors Theses. 3068.
Honors Thesis-Open Access