SAMPLE COST-BENEFIT ANALYSIS FOR MANUFACTURING BUSINESS OPERATIONS

Task Category DOCUMENT FILING

Potential Assumptions Average time spent filing daily Document retrieved daily Average time spent retrieving Average time spent copying Annual paper storage costs 35 cabinet purchases Annual costs/supplies/maint. Annual costs Toner and ribbons for copiers and printers Annual costs Annual copier cost, currently

Equivalent Current cost/time 30 Minutes 25 5 Minutes Per Doc. 2 minutes/One Page Doc. $36,000 $7,000 $6,000

Savings 60% savings

$ Savings $24,750.00

DOCUMENT RETRIEVAL TIME COPYING FLOOR SPACE FILING CABINETS (Annual purchases) FAXING

75% savings 50% savings 50% savings 75% savings 95% savings

$83,200.00 $78,000.00 $18,000.00 $5,250.00 $5,700.00

PRINTING FILING SUPPLIES & PAPER PHOTO COPIER Annual Maintenance

$20,000 $36,500 $22,000

50% savings 50% savings 50% savings

$10,000.00 $18,250.00 $11,000

Category MAILING TELEPHONE BILL LESS part-time help Scanning, annual wages POTENTIAL TOTAL ANNUAL SAVINGS EDMS COULD ALSO PROVIDE, NOT MEASURED IN THE ABOVE ANALYSIS.. Did not factor in wear and tear on copier machine. Did not factor in Management Level efficiency savings.

Assumptions Annual postage costs Annual ($7,000.00)

Current cost/time $14,000 $45,600 0

Savings 25% savings 15% savings 0 Total Return - One Year Initial System Integration costs (including internal resource time) First Year ROI Second Year System Upgrade Costs Second Year ROI

$ Savings $3,500.00 $6,800.00 ($7,000.00) $257,450.00 $110,000.00 $147,450.00 $27,500.00 $229,950.00

Did not factor in Business Value savings (i.e. Customers Lost, Order Delays, Late Intro Costs, Cost of Info Float, and Cost of Competition.)

$ Savings were factored for an hourly staff of 25 people. Using Electronic Document Management, Imaging, and Automated fax routing. The system could provide each of these staff people an "extra" 1 1/2 hours in a given day to do more important things other than copying, filing, etc.