Return on Investment:

Efficiency

Efficiency Calculator

DIRECTIONS: Always use the TAB key or mouse to move between entry values. For your convenience, some fields will have default values entered. You may change any default value.

In the first row, enter your identifying information. This might include your name, department and machine type the analysis covers.
The "Direct Labor" rate (hourly pay) is entered next. The "Burden Rate" (hourly overhead expenses) must be in dollars.
Enter the "Present Efficiency" of the machines. Enter the remaining variables. All fields in the light green must be entered to perform the calculation. The formulas used for these calculations are shown below.
Enter the cost of the MasterTask training system(s) in the blank titled "Training Program Cost". Add in the cost of the training time required to complete the course to make sure your analysis is as accurate as possible.
Enter the "Estimated Percentage of Efficiency Improvement" in the lower left box.

CHANGES: To change an entered value, drag over an existing number and enter a new one. The form will automatically recalculate when you TAB to the next field.

RESULTS:The values below the black text are the calculated improvements. The "Annual ROI" represents the return on the training investment you will receive each year. If you have any questions, call 1-800-624-6968.

SAVE: Save your calculations by PRINTING this page.

PRIVACY: To protect your privacy, the values you enter are not stored or transmitted over the internet.


Identifying Fields

Direct Labor per Hour	$
Burden Rater per Hour	$
Present Efficiency		%
Hours per Shift		hours
Shifts per Day		shifts
Days per Week		days
Weeks per Year Operating		weeks
Quantity of Machines		machines
Machines per Worker
Training System Cost	$

Estimate Percentage of Efficiency Improved:*		%
Increase in Weekly Production Hours:		hours
Increase in Weekly Labor Value:	$
Increase in Yearly Labor Value:	$
Annual ROI will be:		%

* The value entered in "Estimated Percentage of Efficiency Improvement" (EPEI) will be multiplied by the "Present Efficiency" (PE) and product added to the PE. For example, if the PE is 80% and the EPEI is 10%, the new efficiency will be 88%

FORMULAS:
Increase in Weekly Production Hours = Est. % of Eff. Increase * Days per Week * Shifts per Day * Quantity of Machines * Present Efficiency * Hrs per Shift
Increase in Weekly Labor Value = (Direct Labor + Burden Rate / Machines per Worker) * Increase in Weekly Production Hours
Increase in Annual Labor Value = Increase in Weekly Labor Value * Weeks Per Year
Annual ROI will be = (Increase in Annual Labor Value / Training System Cost) * 100