(improved) process. There should be a marked difference in error
rates.
costs in ongoing IS&R activities.
Improvement. Figure in the additional costs of time of error-proofing in
the process itself as part of the cost of production of the information.
and Rework and opportunity costs reclaimed. See Figure 6-25 for an
example.
Expense Category
Five Year Cost of Ownership of Improved Process and 5-Year ROI:
Creating Auto Insurance Application Policies
Year 1Year 2Year 3Year 4Year 5
$2,058,750 $2,058,750 $2,058,750 $2,058,750 $2,058,750
$361,463 $361,463 $361,463 $361,463 $361,463
$1,086,750 $1,086,750 $1,086,750 $1,086,750 $1,086,750
$0
$0 $0 $0 $0 $0
$0 $0 $0 $0 $0
$2,754,000 $2,754,000 $2,754,000 $2,754,000
$14,686,125 $20,947,088 $85,368,375 $120,709,500 $156,050,625
$3,506,963 $6,260,963 $12,521,925 $18,782,888 $25,043,850
$11,179,163 $14,686,125 $72,846,450 $101,926,613 $131,006,775
$11,179,163 $14,686,125 $72,846,450 $101,926,613 $131,006,775
Process Auto ...