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How to calculate benefits? Moving some developed non controlled software/automation systems

mikethepenguin

Starting to get Involved
#1
Hi all, I am trying to work out the benefits to be made from removing some developed non controlled systems of software/automation. There wasn't a business case for why these were made in the first instance, so it's hard to reverse engineer this. The business also has at least 30 areas using these tools, but I think they could be simplified and replaced by controlled systems.

The total time spent fixing incidents from these automations was 250 hours last year (across 50 requests).
My initial thought was to multiply the overall cost to the business by the overhead hourly rate ($100/hr).

250 * 100 = 25,000

Would I be correct in saying that these systems are costing the business $25,000 per year?

On the other hand, some of these systems if not run could cost the business $50,000 per day in fines, risk, loss of business.
In summary these systems are pivotal to the business, but it's hard to comprehend how limited the business be without them.

Any suggestions are welcome!
 

Jen Kirley

Quality and Auditing Expert
Staff member
Admin
#2
I think it is fair to say the minimum cost is that of which is needed to address each instance of the problem.

Unrecognized is the possibility of lost business from the problems. They can be very difficult to quantify.
In case it helps, I have put a Cost of Poor Quality (COPQ) calculator in the How to Calculate the Cost of Poor Quality (COPQ) thread.
 


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