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29 July 2007

Cost saving calculator

Cutting costs? Running a Six Sigma project?

I put together a calculator to help work out the value of process improvements based upon average handle time, transaction volumes and FTE (full time employee) costs.

You can enter the before and after values and see the forecast value of your process improvement project.

How to use it
The grey "Resource Costs" box shows the cost per minute/annum of work time. It is derived from a number of factors which can be changed depending on the workforce.

The Blue"As Is" box calculates the current cost of transactions based upon the established cost per work time, the number of transactions and the average handle time (AHT.) It also shows whether there are sufficient FTE allocated to the work.

The Green"Savings Calculator" box assesses the value of process improvement initiatives by capturing the aggregate value of improvements to handle time and volume of work.

If you do have a look at this tool and even use it I would appreciate feedback on whether you found value in it and whether you had any troubles using it.