BUSINESS IMPROVEMENT

PROPOSAL
By Fiona
MG934 Professional Management Practice
Chollada Tontanasutthivong 201663549 MFM
Nithila Thomas 201667343 MBM
Mohammed Elbadawi Eltigani Elbadawi 201667676
MBM
Stylianos Krasanakis 201650988 MFM
Varalee Kittichitvarangkul 201692833 MFM
Abdulmajeed Abdullah A Alahmari 201664961 MFM
Khaled BaderKhaled Mubarak Algherair 201688213
Words count: 1934
MFM
EXECUTIVE SUMMARY

This report was commissioned to analyse the problematic situations in

Orbis Protect Ltd. and to choose the best business improvement proposal
for its advancement and improvement over the following months. The
report also explains the behavioural changes that are to take place after
the implementation of the proposal.

Assessment

Most of the current issues in Orbis are due to the reasons that follow. The
company seems to have no thorough records of the qualifications of
employees, and also lacks rules and regulations regarding the
requirements of skills and qualifications for promotions and recruitment.
Hence, employees who dont have the necessary skills are being
promoted to the managerial position, and this results in a variety of
operative problems. The right people are not assigned to do the right jobs
and proper training is not provided to the employees. Another problem is
that the communication between departments and the employees and
managers is poor, which results in a lack of knowledge and uncertainty
over who did what job. Moreover, the managers fail to take the
responsibility for what they do when a problem occurs and create
misunderstandings. Orbis lacks proper leadership, and confidence within
the company.

Thus, the implementation of the Knowledge Management Proposal will

provide solutions for majority of the issues that the company faces. It will
result in appropriate behavioural changes by providing necessary training
to management level staff and other employees, making the sharing of
data and information easier, improving communication, reducing
misunderstandings, and decreasing errors. Furthermore, Knowledge
Management Proposal is the second cheapest business improvement
proposal in terms of costs.

Relevant and Chosen Proposal

The analysis undertaken in this situation looks at four proposals including
the Knowledge Management proposal, the Business Analytics proposal,
the Customer Relationship System proposal, and the Accounting Control
System proposal. The business improvement proposal that best fits Orbis
Protect Ltd. is the Knowledge Management proposal, and is hence the
chosen proposal here.

Resources

Within a period of five weeks, resources used to aid this analysis were
based on information gathered from e-mails, financial reports, and
assumptions based on observations.
Contents

1. Introduction___________________________________________________________________1
2. Analysis of Situation__________________________________________________________2
Business Operation____________________________________________________________2
Business Environment_________________________________________________________3
Finance________________________________________________________________________3
3. Justification___________________________________________________________________4
Proposal improvement_________________________________________________________6
Payback period________________________________________________________________7
4. Behavioural Changes_________________________________________________________8
5. Conclusion____________________________________________________________________9
Appendix_______________________________________________________________________10
1. Introduction

The purpose of this report is to introduce the best proposal that can help
Orbis Protect Ltd. to find solutions for the main concerns that have been
observed through five weeks of contacting, analysing, and evaluating all
possible information that have been received from the companys
departments. It can be clearly seen that, currently, there is a huge
misunderstanding in responsibilities among managers and employees in
many departments across the organization.

A key issue found is the lack of communication between employees

amongst leading positions, which affects the morale of staff, and
operatives in the company. Likewise, it was found that most operations
suffer from incorrect expertise and technicians that have affected the
work efficiency. There is no doubt that the human resource department in
the company was deeply involved in the lack of employees' knowledge.

Moreover, delaying financial information issued from several divisions has

significantly affected the financial aspects of Orbis, leading to long term
negative impacts. This analysis, finally, concludes with the process of
behavioural changes.

1
2. Analysis of Situation

Within a duration of 5 weeks, using the contacts provided, an analysis of

the current situation in the organisation was made through meetings,
emails, observations, and financial evaluation. Through this analysis, it
was found that throughout the company, many problems occur in almost
every sector of the company, including divisions of management and
business operation to name a few. Hence, from all the information taken
into account, a Fishbone Analysis1 has been developed that shows the
organisation's internal problems, a Rich Picture2 is included that visualises
the organisation's current situation, a Force Field Analysis3 that
demonstrates the force drivers for change, and finally a Stakeholder
Analysis4.

Business Operation

Recruitment of depot staff and operatives in Orbis is done by depot

managers (DM) who have had no actual relevant skills. Operatives are
sent to positions without training, and hence do not do the right jobs they
are meant to do. Due to the ineffectiveness of the current system for
recording employee qualifications and development, problems occur
regularly as operatives the people who work closely with clients, and are
vital and solely meant to be at the heart of the organisation. One such
problem is one that has been picked up lately by the North British Echo
newspaper, January 2017. The article notes that as a result of the
operations in Orbis and poor customer service, the cancellation of the
companys contract with its latest customer, West Grimston Council,
happened. It lost its contract because Orbis left the councils depots
insecure and uninhabitable. The councils spokesman mentioned that
Orbis staff started doing their job perfectly at the depot, but couldnt
complete it due to communication problems.

Pat Hartley, Compliance Director, mentioned that there was a confusion

among the depot staff about who did what job and DM may or may not

2
have known about what the staff were going through. Leigh Bodworth,
Customer Service (CS) Manager, stated that they reported completion of
the job to the customer after getting the permission from DM, which
makes the CS not responsible for that issue. Meanwhile, Operations
Director Bryn Campbell, Compliance Director Pat Hartley, and Information
Technology Manager Saul Doherty blame the CS system for an error
caused by the CS staff and berate their lack of customer focus.

Business
1
Appendix 1 -Environment
Fish Bone Analysis
2
Appendix 2 - Rich Picture
3
Appendix
After this3 incident,
- Force FieldClive
Analysis
Thompson, Regional Managing Director, allocated
4
Appendix 4 - Stakeholder Analysis
Ehjaz Taneja - DM to oversee a programme of site inspections in order to
check the compliance of recent work.

Ehjaz indicated that, generally, it is possible to schedule work in a depot

and solve in-site problems immediately because DM are able to move
their team around to ensure that they got issues solved. But, when the
service centre, Aura, handles everything it is ineffectively controlled and
miscommunication appears because a computer tells everybody what to
do and where to go. Sometimes, it sends people to jobs and makes them
sit for hours waiting for authorisation which causes administration delays
and customer dissatisfaction. John Keynsham, General Manager,
mentioned that when he was a DM, Aura was his biggest obstacle because
it was still not fit for purpose.

Aura has a remarkable foot print in creating more problems, specially after
applying the multi-skilling strategy, i.e. sending cleaners to alarm
installations jobs, fitters to clean-up-jobs etc. because it ignores the skills
of different trades, a problem that a DM can simply handle. Although the
performance figures for January show that the service centre is doing
good and customers are happiest at every point, Orbis doesnt need
customer or employee satisfaction measures to tell the effects of wrong
usage of Aura. That being said, the Customer Relationship System
proposal by Mira Wadekar, Business Development Director, will not be a

3
good option because Auras issues will still occur and depot managers will
keep recruiting staff/operatives with wrong qualifications.

Finance

There is no direct relationship between the accounting and sales systems

which makes it difficult and time consuming to trace transactions and
write financial reports, a job that should normally take fraction of seconds
to be automatically done, as mentioned by Saul.

Although Steven Cramm, Financial Controller, proposed that these

problems could be solved by an Accounting Control System (ACS), this
proposal will not offer the best solution because the other systems that
should be linked to ACS will still have their weaknesses unsolved.

Although the implication of the Business Analytics proposal by Saul will

revise issues between the accounting system and other systems, it will
offer more management control over the company. Even then, depot
managers will continue recruiting inappropriate employees for jobs and
Aura will still be misused, which make this proposal not the best solution.

4
 3. Justification

Table 1: The comparison between four proposals

Customer
Knowledge Accounting
Business Analysis Relationship
Management System
System
Benefit - It allows managers - It will allow the - It allows the - The Interface
recognize skill company to company know between the
shortages and improve customer AURA system
competencies of management information. and the existing
- It can build and
employees in their through improved accounting
maintain the
own departments information quality. package is less
- It can improve report relationship
and identify than perfect.
quality by replacing between - It allows owners of
training
existing reporting customers and the business
requirements.
- It offers the with alternative the company. know if the
- The system can
opportunity to frameworks and control system is
improve sales
employees to approaches. suitable for
- It can improve forecasting.
express purpose.
operational - It can increase - The company can
knowledge and
efficiency. customer easily obtain
experience in
- It will reduce analysis
loyalty and loans and
order to help plan
time and improve
satisfaction. overdrafts from
the personnel
accrual information.
banks.
development
- It helps the
process.
company
- The system is able
manage money
to record training
due from
and qualification
customers.
of local staffs.
- Practice group accurately.
- It is flexible and
workshops will
quick in creating
establish a culture
accounting
of continuous
reports.
improvement.
Cost 616,9241 275,0002 509,7003 401,8404
User All employees All departments Sales and Accounting,
marketing, and customer service
customer service and IT
Require Human Resource IT Senior Finance, Customer
d staf management, service, and IT
1
Appendix 6.1 Knowledge Management Proposal
2
Appendix 6.2 Business Analytics Proposal Sales and
3
Appendix 6.3 Customer Relationship Management Proposal
4
Appendix 6.4 Accounting System Proposal

5
 marketing, and
customer service
team
Considering the previous analysis and comparing between four proposals
in Table 1, the Knowledge Management proposal by Leslie Bond, Human
Resource Manager, will best fit Orbis situation because it will offer a
computer-based record of peoples qualifications and certifications which
will allow the company to record the training of each individual. Therefore,
it will be continuously updated with the training requirements of each job
in the companys structure, which will directly help in assigning the right
people to do the right jobs. This system also provides workshop group
allowing employees to share their knowledge and experience with other
employees. It would be the best way for managers and colleagues to
access such information and deploy skills effectively.
In terms of miscommunication within the company, the Human Resource
team can provide communication training to all employee levels in order
to reduce misunderstandings and conflicts between different level jobs,
which will directly reduce the time assigned for the completion of each
job.

Figure 1: The Knowledge Management process

6
Proposal improvement
Based on the information given, the table below demonstrates five parts
that need to be improved in the Knowledge Management proposal.
Table 2: Costs of the proposal improvement

Price Quantity Cost

1. PCs 500 9 PCs 4,500
2. Internal 20,000 20,000
bandwidth
3. Set-up Sever 19,000 19,000
4. Connect with 40,000 40,000
Aura
5. Annual Training 60,000 5 years 300,000
course
Total Cost 383,500

Firstly, the supply of computers is necessary for staff members because

computers are needed for gathering information that include work
responsibilities and for accessing E-learning and E-training software. The
company currently has three depots. Three computers should, hence, be
added per depot. As such, equipment costs would be 4,500. Secondly,
when adding more computers, internal networks might not be able to
support additional bandwidth, and servers must be upgraded for capacity.
The internal bandwidth and set-up server would hence cost 20,000 and
19,000 respectively. Furthermore, the KM system will not automatically
interface with Aura, so 40,000 should be included for connecting Aura.
Lastly, in order to bring employees up to standard with their certifications,
the company needs to provide training budgets of 60,000 per annum.
Therefore, the total costs of the project improvement would be 383,500.

By implementing this proposal, should it succeed, non-productive time1

(e.g. time wasted awaiting Orbis specialists, tradesmen and rectification)
would be decreased and labour costs2 would decrease as through
providing training courses and personnel development systems to staffs,
efficiency and expertise would be enhanced. That means error in working
process and conflicts across Orbis would be minimised. Employees
understanding their duties lead to positive working environments, as a
result increasing productivity thus increasing profitability.

7
1
Appendix 7.1 Non-productive time
2
Appendix 7.2 Saved labour costs

8
Payback period
The payback period1 would be shown below:

Payback period
Net benefit / (costs) Balance carried
forward
Year 0 (575,424) (575,424)
Year 1 415,445 (159,979)
Year 2 437,311 277,332
Year 3 460,271 737,603
Year 4 484,378 1,221,982
Year 5 509,691 1,731,673

The company will recover from cash inflows generated by the investment
in the second year.

1
Appendix 8 Cost benefit analysis

9
4. Behavioural Changes

The implementation of the knowledge management proposal will result in

many positive behavioural changes within Orbis. As mentioned earlier in
the report, one of the main issues in Orbis, at the moment, is the lack of
proper communication. The communication between its departments is
very poor, and due to this there is a lack of knowledge and also
uncertainty over who did what job. This can be solved with the
implementation of the knowledge management proposal as this will result
in a proper communication flow between the departments, thus making
the sharing of information and data much easier and clearer. In Orbis,
employees are promoted to the managerial position often without the
necessary training and qualifications. This can be avoided in the future as
knowledge management will put forth a set of rules and regulations
regarding the training, required skills and qualifications, and promotion of
employees. Another matter of concern in Orbis is that there are often
misunderstandings between the managers and employees, and that the
managers are unwilling to take the responsibility for what they do
whenever there is a complication. Now as the communication between the
departments and employees improve, the misunderstanding between
managers and employees will eventually decrease. Also, more
importantly, as the personnel development programme focuses on
differentiating between management and leadership and the
management level staff are given proper training, the managers will be
able to acquire specific skills that they currently lack. With the
development of these skills, they will be able to bridge the communication
gap between themselves and the employees, develop a mutual
understanding, and create a better work atmosphere overall. Yet another
issue is that the operatives do not do their jobs properly, or in other
words, the right people are not assigned to do the right jobs. There is a
lack of confidence among the employees due to this, and most of them do
not know how to handle the tasks assigned to them. The knowledge
management proposal will focus on the necessary competencies to

10
complete a job and provide training to the employees. Hence, over time,
this issue will be solved as the employees gain more knowledge about
their jobs and acquire the necessary skills to do them.

11
Implementation Process

1. Establish a clean database of the employees qualifications and

certifications.
2. Form a set of rules and regulations for employees promotions.
3. Determine training requirements along with depot managers and
regional managing directors to improve employees skills and
knowledge.
4. Training of management level staff.
5. Conduct practice group workshops for continual development.

5. Conclusion

In summary, it can be seen clearly that the Knowledge Management System is a

worthwhile investment for the company. The companys internal problems should
be solved as the first priority. This system will allow the company improve the
potential of its employees through the collaboration between managers and
employees and between departments. Only in the second year, the company can
recover their costs and result in the increased profitability, improved customer
services and response times, and reduced conflicts within the organisation. It will
provide the benefit for the company in the long term and lead to the companys
success in the future.

12
Appendix
Appendix 1 - Fish Bone Analysis

13
Appendix 2 - Rich Picture

14
Appendix 3 - Force Field Analysis

15
Appendix 4 - Stakeholder Analysis

16
Appendix 5 Statement of comprehensive income

17
Appendix 6 - Costs of four proposals

6.1 Knowledge Management Proposal

Category Project Calculati Year 0 Year Year Year Year Year 5

Requirem on 1 2 3 4
ents details
for year
0
License cost 120,000 120,0 0 0 0 0 0
for one 00
time
(based on
40 users)
Additional 2,500 per 2,500*11 287,5
license cost user 5 users = 00
287,500
Annual 25,000 0 25,0 25,0 25,0 25,0 25,00
maintenance 00 00 00 00 0
cost
Implementation 1,250 per 30 days 37,50 0 0 0 0 0
work day consultan 0
consultancy cy cost =
37,500
(1,250*3
0)
Recording of 1
HR staffs HRs cost 22,20 0 0 0 0 0
training data are for three 0
(two HR staffs required months =
for three for three 22,200
months) months (3,700*3
(HRs *2)
Salary =
3,700 per
month)
Training costs 400 hours Training 19,72 0 0 0 0 0
costs = 4
19,724
(400 *
49.31)
Miscellaneous Assume 5,000 0 0
cost miscellane
ous cost
2,000
only year 1
491,9 25,0 25,0 25,0 25,0 25,00
24 00 00 00 00 0
Total cost 616,9
24

1
HRs Salary is calculated from total HRs salary is 581,200 per year. There are 13 HR staffs. Thus, the HRs
salary pee month is equal to approximately 3,700 (581,200/(13*12)). Salary and wages are taken from
Management Accounts report for January 2017.

18
 6.2 Business Analytics Proposal

Category Project Calculat Year 0 Year Year Year Year Year 5

Requirem ion 1 2 3 4
ents details
for year
0
License cost 33,000 33,00 33,0 33,0 33,0 33,0 33,00
per annum 0 00 00 00 00 0
(based on
30 users)

Training run 350 per 45 days 15,75 0 0 0 0 0

by day training 0
consultancy cost =
15,750
(350*45
)

Implementati 1,250 per 45 days 56,25 0 0 0 0 0

on work day consultan 0
consultancy cy cost =
56,250
(1,250*
45)

Miscellaneou Assume 5,000 0 0 0 0 0

s cost miscellane
ous cost
2,000
only year 1

110,0 33,0 33,0 33,0 33,0 33,00

00 00 00 00 00 0
Total cost 275,0
00

19
 6.3 Customer Relationship System Proposal

Category Project Calculatio Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Requireme n details
nts for year 1
Initial cost 3 days for 1
senior 700 0 0 0 0 0
one senior manageme
managemen nt salary
t per 3 days
= 700
(235.27*3)
License cost 80,000 Number of 185,00 0 0 0 0 0
(based on users = 45 0
15 users) extra 30
user
licenses
(@3500 per
extra user)
= 185,000
Annual 25,000 per 0 25,00 25,00 25,00 25,00 25,00
software annum 0 0 0 0 0
support cost
Implementatio 79,000 for 79,000 0 0 0 0 0
n work one time
consultancy cost
Annual 14,000 per 0 14,00 14,00 14,00 14,00 14,00
Software annum 0 0 0 0 0
Maintenance
Culture 750 per Number of 7,500 7,500 7,500 7,500 7,500 7,500
Change day workshop =
Workshops 10 days.
Culture
Change
Workshops
cost for 10
days =
7,500 per
year
Miscellaneous Assume 5,000 0 0 0 0 0
cost miscellaneo
us cost
2,000 only
year 1
277,20 46,50 46,50 46,50 46,50 46,50
0 0 0 0 0 0
Total cost 509,7
00

1
Senior managements salary is calculated from total senior managements salary is
388,800 per year. There are 6 management staffs. Thus, the senior managements
salary per day is equal to approximately 235.27 (338,800/(12*20*6)). 20 days for
working day. Salary and wages are taken from Management Accounts report for January

2017.

20
 6.4 Accounting System Proposal
Category Project Calculation Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Requireme details for
nts year 1
License Cost 80,000 Number of 110,0 0 0 0 0 0
(based on users = 40 00
20 users) users

20 user
license +
extra 20 user
licenses
(@1,500 per
extra user) =
110,000
Annual 22,000 per 0 22,00 32,00 22,00 32,00 22,00
support cost annum 0 0 0 0 0
Provision
every
second year
10,000

Implementatio 1,500 per Implementati 45,00 0 0 0 0 0

n work day on cost = 0
consultancy (required 30 45,000
days) (1,500*30)
Training run 250 pay Training cost 7,500 0 0 0 0 0
by day = 7,500
consultancy (required 30 (250*30)
days)
Cost of one The salary For 6 months 17,10 0 0 0 0 0
staff from IT of IT = Cost of IT 0
for 6 months 2850 per staff =
months 17,100
(required 6 (2850*6)
months)
Cost of one The salary For 6 months 10,68 0 0 0 0 0
staff from of Service Cost of 0
Service Centre Centre = Service
for 6 months 1780 per Centre staff =
months 10,680
(required 6 (1780*6)
months)
Cost of one The salary For 12 76,56 0 0 0 0 0
staff from of Service months 0
Finance for 12 Centre = Cost of 2
months 3190 per Finance staffs
months = 76,560
(required 12 (3,190*12*2)
months)
Miscellaneous Assume 5,000 0 0 0 0 0
cost miscellaneo
us cost
2,000 only
year 1
271,8 22,00 32,00 22,00 32,00 22,00
40 0 0 0 0 0
Total cost 401,8
40

21
 Appendix 7 - Managerial Account
Physical Clean & Alarm
Monitor
Security Repair Install. 7.1 Non-productive time
1,321,100. 1,294,300 576,100.
Labour costs 2,315,700.00
Physical 00
Proper .00
Alarm 00
Response Decrease
Headcount Security 82.00
136.00 ty Install.
71.00 Centre
35.00 Non-
Hours per week 35.00 Service
38.00 35.00 38.00 Company productive
Working weeks s Total time
per year Total available hours 45.60 19,649 45.60
12,780 45.60
10,137 45.60 5,346 47,912
108,528.0 64,113.6
Unrecorded time 743.9 467.1 275.8 11.5 1,498
Possible hours 217,056.00 135,158.40 0 0
Sickness 1,999.1 1,325.7 461.9 240.0 4,027
Calculation
Unpaid leave 200.1 248.0 67.0 - 515
Retrieving materials 10.67 548.9 9.77
Rate per hour 125.2 11.93356.0 8.99 - 1,030
Retrieving
Save 1% hours per 243.2 113.0 112.0 -
week equipment 0.35 0.38 0.35 0.38 468
Hour saveAwaiting
per yearOrbis 854.9 226.9 135.6 -
(per person)
specialists 15.96 17.33 15.96 17.33 1,217 60.87
Awaiting
Hour save per year tradesmen 526.8 477.4 400.5 - 1,405 56.19
Awaiting client
(total headcount) 2,170.56 1,420.90
125.6 355.31,133.16347.6606.48 14.3
instructions
Amount saved 23,157.00 13,888.49 13,514.01 5,449.59 843 25.28
Rectification 962.2 489.9 374.0
56,009.1 - 1,826
Total Administration 336.2 280.8 217.3 0 55.3 890
Training 360.0 120.3 168.4 53.6 702

Total Non-productive
time 6,901 4,230 2,916 375 14,421 142.34

7.2 Saved labour costs

22
7.3 Peak time license user

Peak time license user

Weig Us Peak time
Class
ht er Users
Class 1 - Online
constantly 90% 28 25.2
Class 2 - Regularly 13
access 60% 3 79.8
31
Class 3 - Rarely use 15% 7 47.55
Total Peak time users 152.55
Approximately users 155
License based on 40 40

23
users
Additional licenses 115
From total employee = 478 (161 Indirect staffs +
317 Direct staffs)
* Class 1 users = 28 (13 HR + 15 Managers)
* Class 2 users = 133 (161 - 128 = Remaining
Indirect staffs)
* Class 3 users = 317 (Direct Staffs)

24
Appendix 8 - Cost benefit analysis

8.1 Summary

Payback calculation template

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

(575,424 (159,979
Balance brought forward ) ) 277,332 737,603 1,221,982

Costs
Capital costs 4,500 - - - - -
Licenses 407,500 25,000 25,000 25,000 25,000 25,000
Consultancy costs 37,500 - - - - -
Training costs 19,724 60,000 60,000 60,000 60,000 60,000
Other revenue costs 106,200 - - - - -
Total costs in period 575,424 85,000 85,000 85,000 85,000 85,000

Benefits
Incremental revenue - 437,325 459,191 482,151 506,258 531,571
Productivity improvements - 63,120 63,120 63,120 63,120 63,120
Direct cost savings - - - - - -
Sales and admin cost
savings - - - - - -
Total benefits in period - 500,445 522,311 545,271 569,378 594,691

(575,42
Net benefits / (costs) 4) 415,445 437,311 460,271 484,378 509,691

(575,42 (159,979
Balance carried forward 4) ) 277,332 737,603 1,221,982 1,731,673

25
 8.2 Costs
Costs summary
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
PCs (9 PCs - 3 PCs
4,500.00
per depot) 500
Total Capital
costs 4,500 - - - - -

License cost
(based on 40 120,000
users)
Additional License 250
287,500
(115 users) 0
Annual
25,000 25,000 25,000 25,000 25,000
Maintenance
Total License
407,500
costs 25,000 25,000 25,000 25,000 25,000

Consultancy costs 37,500

Total
Consultancy 37,500
costs - - - - -

Cost per 49.3

chargeable (AVG) 1
Training costs (400
19724
hours) 400
Training costs per
60,000 60,000 60,000 60,000 60,000
year
Total Training
19,724
costs 60,000 60,000 60,000 60,000 60,000

Miscellaneous 5,000
Connect with Aura 40,000
Set-Up Server 19,000
Internal bandwidth 20,000
Recording data
costs (2 HR 22,200
dedicated)
Other costs 106,200 - - - - -

26
 8.3 Benefits

Benefits summary Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Additional sales
Extra sales achieved 1,190,00 1,311,97 1,377,57 1,446,45
(growth 5%) 0 1,249,500 5 4 2 1,518,775
gross margin
percentage achieved 35% 35% 35% 35% 35%
Cash benefit on
additional sales - 437,325 459,191 482,151 506,258 531,571

Productivity savings
(detail
category,hours and
hourly rate)
Total amount saved
from labour costs 56,009 56,009 56,009 56,009 56,009
Saved non-productive
time (1%) 7111 7111 7111 7111 7111
Productivity
improvements - 63,120 63,120 63,120 63,120 63,120

27