Hour Savings Calculator Cost Savings Calculator Logo Here Raised By: Date Raised: Target Date: Finished Date: Work Area: Manager: Supervisor: Team: Hour Savings Calculator Cost Savings Calculator Current task time (hours) a Current item cost ($) a Overview: Use the Savings Calculator sheet to determine the potential savings that could be made with your improvement idea. Task time for new method (hours) b Cost for new or alternative item ($) b Estimated saving (hours) (a–b=c) c Estimated saving ($) (a–b=c) c Description: Use this space to briefly describe your cost saving idea. Use sketches and diagrams if needed. Hourly Rate – ask if unsure ($) d Total saving ($) (c x usage per wk) d Weekly saving ($) (cxd x # instances) e Total yearly saving ($) (d x 48 wks) e Total yearly saving ($) (e x 48 wks) f Estimated cost to change over ($) f Payback period required (months) g Cost : Benefit ratio (f÷e) g Estimated cost to implement ($) h Payback period (months) (h÷f)xg i Instructions: Decide whether your savings will be made in time (hours) or in terms of costs (dollars). Fill in the appropriate column opposite. Answer the questions and complete the calculations detailed. Determine whether or not the improvement idea has a good cost to benefit ratio – ensure that there will be a reasonable payback on any costs incurred. If there is no benefit, file the recommendation for future reference. If there is a benefit, approach management for agreement and sign off. Commence the project and make the savings you have identified. Is the Cost : Benefit ratio less than 1? If so there is a benefit, so request sign off for this project. If the cost benefit ration is more than 1 then this shows that the project will not make enough of a saving to pay for its self. Approved: Is the estimated payback period i less than the required payback period g? If so there is a benefit, request sign off for this project from Management. Approved: Original Issue Date: 23/04/2010 Revision Date: 7/08/2010 Status: Ver 1.01 Publisher: Rob Tomlinson – www.ii-au.com Page 1 of 1 © Incremental Improvements Australia This sheet may be acquired in an original format by our Clients for use within their organisation only – please email a request for originals to ask@ii-au.com.