COSTBENI.XLSVIP

Sheet1Page1Hardware$175?IncreaseSalesSoftware$175?IncreaseLaborProductivity(direct)TrainingSupport?ShortenLeadTimesIn-House?$1,500ReduceInventoryOutside?(onetime-50%RawMaterial,25%WIP)ProfessionalServices$350?ReducedScrapHardwareMaintenance(10%)$18$225ReducedCarryingCosts(15%)SoftwareMaintenance(15%)$25?ReducedExpeditingCosts$40ReducedDataEntry$38ReducedNonValueAddedLaborTOTAL$743$1,803Year1Year2Year3Year4Year5CumulativeBenefits$1,803$303$303$303$303$3,015Costs($743)($43)($43)($43)($43)($915)Cashflow$1,060$260$260$260$260$2,100Example:Cost/BenefitAssessmentHardCosts(1000s)HardBenefits(1000s)