Imaging Solutions
1300 Bristol North Suite 100
Newport Beach, CA 92660
800-716-4268
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Return On Investment
Calculations
To
calculate the ROI you must calculate the savings of man-hours and storage
cost savings against the cost of our document imaging system and the cost
to operate it.
Formula:
1 – 3 ft. filing cabinet drawer = 9,000 documents (pages)
1 – 4 drawer filing cabinet = 36,000 documents (pages)
1 – 4 drawer filing cabinet requires 21 sq. ft. of storage space
(Including space to open drawers)
Annual cost of storing your documents:
No. of filing cabinets __________ X 21 sq. ft = __________ total
square feet.
Total square feet _________ X $ _________ per sq. ft. = $ ________
Annual Cost
Example:
15 filing cabinets
$24.00 per sq. ft. rent
15 x 21 = 315 total sq. ft.
315 x $24.00 = $7,560 Annual Cost
Cost to your company to find and retrieve documents:
One of the key advantages of an electronic document management system is
the ability to find and retrieve documents instantaneously from your
desktop PC. Time management experts estimate that searching for documents
occupies 20% to 30% of the average employee’s time. Therefore, based on
the 20% figure, the annual savings in man-hours is as follows:
20% X No. of employees __________ X $ ___________ Avg. Annual Wages
= $ __________ Savings
20% X No. of employees __________ X $ ___________ Avg. Annual Wages
= $ __________ Savings
Example:
Included with this material is a case study of Pure Resources, an Oil and
Gas Exploration Company. In their case, they had a rapidly expanding
company that had an enormous need to hold expenses while the volumes of
paper and business rose exponentially.
Time
required to scan and label documents:
Based on current customers, a good rule of thumb is 2000 documents
per ½ day of an entry-level person’s time.
Current workflow:
No. of documents per day __________ divided by 2000 X ½ day (3 ½ - 4
hours) of employee’s time = __________ amount of time to maintain
current workflow.
Archived documents:
No. of filing cabinet drawers ________ X 9,000 = __________ total no. of
documents. Total no. of documents __________ divided by 4,000
= ___________ number of days to eliminate archived documents.
Example:
If we use the earlier example of:
15 filing cabinets
$24.00 per sq. ft. rent
500 new documents a day
10 office employees at $20,000 per year income
Annual Storage Cost = $7,560
Time savings at 20% = $40,000
Current document time to scan and label documents = 1 hour per day vs.
time to hand file 500 documents.
Cost to scan and label archived documents = 135 days
135 day of labor at $20,000 annual labor cost = $10,800
Cost of Model # 2000 = $11,195
Summary:
Annual Savings = $7,560 + $40,000 = $47,560
One time cost = $10,800 + $11,195 = $21,895
Return of Investment = 168 days
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