Return on Investment:

Operating Cost

Operating Costs Calculator

DIRECTIONS: Always use the TAB key or mouse to move between entry values.

In the first row, enter your identifying information. This might include your name, department and machine type the analysis covers.
Enter your current annual cost in the "Cost Area" column. If you do not know what your Setup Time Costs are, simply click on the words "Setup Time Costs" to display another form at the bottom of the page to help you make the calculation.
Enter the estimated percentage of reduction you feel you will accomplish by retraining your personnel in the "Estimated Reduction %" column.
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.

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: In the "TOTALS" line you'll see the dollar amount of savings you've projected. The "Payback Period" calculation indicates how many months it will take to recover the investment entered in "Training Program Cost". The value that appears in the "Annual Return" blank is similar to the interest you might receive on a savings account. In this case, it is the projected annual return on your investment in the training materials. 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
Cost Area	Annual Total	Estimated Reduction %	Reduction Amount
Setup Time Cost	$	%	$
Scrap & Rework Cost	$	%	$
Tool Damage Cost	$	%	$
Down Time Cost	$	%	$
Machine Repair Expense	$	%	$
TOTALS	$		$
Training Program Cost:			$
Payback Period (months):		Annual Return (projected):	%
Don't know your annual Setup Time cost? Fill in the worksheet below.

DIRECTIONS:You only need to enter the values in the boxes below the GREEN TEXT. For example, enter the first two values "Number of Machines" and "Setups per Machine per Week" to calculate the "Setups per Week" in the "Total" column. This total will then be carried over as the first value in the second row. To perform the next calculation, simply enter the "Average Hours per Setup" value. Be sure to add together your hourly Direct Labor pay rate and your Burden (overhead) rate and enter the total in the "Direct Labor & Burden in Dollars" field. The final total calculated by this form will automatically appear in the ROI calculation form above. Return to the ROI form.

Annual Setup Time Cost (Worksheet)
Number of Machines		Setups per Machine per Week		Total
	x		=
Setups per Week		Average Hours per Setup
	x		=
Hours of Setup per Week		Weeks per Year of Operation
	x		=
Annual Setup Hours		Direct Labor Burden in Dollars (hourly)
	x	$	=