| Additional Costs |
|
Savings |
| Cost of tag/form used for counting
Cost of tag/form ____________ x # of forms _________ |
= |
$__________ |
| Clerical cost of tag/form preparation
Average Clerical Cost/Hour $________ x # of hours to
prepare materials ________ x # of clerks required for
preparation materials________
|
= |
$__________ |
| Clerical cost of entering inventory tags
Average Clerical Cost/Hour $________ x # of hours to
enter count tags/forms ________ x # of clerks required
for entry of tags/forms__________
|
= |
$__________ |
| Reduction of the time necessary to perform the count
as a result of the reduction in the number of employees
needed in the count group and the elimination of the
time spent writing tags. -- average time reduction is 65%
Average total time to perform count________ x average
hourly cost of personnel on hand for the count
$__________
|
= |
$__________ |
| Reduction of the time associated with the "runners"
used to go back out on the floor to clarify the
information written on tags that is indecipherable.
Average cost/hour of runners $__________ x number
of runners used _________ x number of hours
worked __________
|
= |
$__________ |
| Reduction of the time necessary to perform
audit counts ordered selectively by the auditors
Average time to perform audit counts________ x
average hourly cost of personnel on hand for the
audit counts $__________ =
Total cost of audit count $______________ x 65%
|
= |
$__________ |
| Reduction in inventory auditor time due to overall
reduction in inventory count time. Auditor cost is
reduced in accordance with the time saved during
the counting process. Average auditor cost per hour
during count time $_________ x average number
of hours to perform the count ________ = Total cost
of auditors during count $ _________ x 65% |
= |
$__________ |
| Reduction of plant downtime due to overall count
time reduction # of hours down during counting
activity_____________ x Average hourly dollar
output $___________ = Total value of plant
downtime $____________ x 65% |
= |
$__________ |
| Total Savings |
= |
$__________ |
