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Return On Investment

 
Manpower Utilization Improvement System (MUIS)
Typical Return On Investment (ROI)
This ROI calculation is based on assumptions
for an automotive OEM assembly plant with
  1. 250,000 Vehicles, annual volume
    2000 Operators
    50 Supervisors
    2 Shifts per day

2. Labor cost per employee at US$ 80,000 per year

3. Cost of average down time at US$ 6,000 per minute
 
S.No.
Description
Savings in US $
1 Savings on identification of “Qualified Replacement Operators” at “Formula ONE Speed”
( Reduction in Startup / Throughput Loss in the Plant) =
7,500,000
2 Savings on proactive identification of   “Training Needs” & improved “Skill Management”
( Reduction in Absentee Allowance) =
1,600,000
3 Savings on identification of   “Qualified Replacement Operators”
( Reduction in Low Mileage Warranty Returns) =
500,000
4 Savings on using “Hot Report” for finding “Replacement Operators”
( Productivity Improvement) =
480,000
5 First Time Capability (FTC) Improvement by   “Minimizing number of vehicles to repair”
( FTC Improvement) =
480,000
6 Savings on using automated Flex Chart for “Training Data Management”
( Productivity Improvement) =
200,000
  Total Annual Savings 10,760,000
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Manpower Utilization Improvement System Return On Investment