BIZOMAT Tools · Improvement
Improvement Value
What is this process improvement worth?
Values the labour time released by an improvement and its payback.
Open the calculatorRuns in your browser. No account needed.
How this tool works
Inputs, units and where to find them
| Input | Unit | Typical source |
|---|---|---|
| Current time / occurrence | min | Measured time per occurrence before the change |
| Improved time / occurrence | min | Measured or trialled time per occurrence after the change |
| Occurrences / week | times | Occurrences per week from records |
| Loaded labour rate | $/hr | Loaded labour rate |
| Implementation cost | $ | One-off implementation cost |
| Working weeks | weeks | Working weeks per year |
What each input means
Open an input to see what it is, its units, the worked example and the common mistakes, with a small diagram.
What this means: Current time / occurrence
- What it is
- How long the task takes each time it is done today, measured by timing it over several occurrences before the change.
- Units and format
- Enter a number in min: minutes. The form accepts 0 min or more.
- Example
- The form opens with 12 min as a worked example. It is an illustration, not a recommended value: replace it with your own figure.
- Effect on the result
- Minutes saved are current minus improved time.
- Get it right
- Enter minutes per occurrence, timed over several repeats, not a single best attempt.
What this means: Improved time / occurrence
- What it is
- How long the task takes each time after the change, measured in a trial or pilot of the new method.
- Units and format
- Enter a number in min: minutes. The form accepts 0 min or more.
- Example
- The form opens with 8 min as a worked example. It is an illustration, not a recommended value: replace it with your own figure.
- Effect on the result
- A shorter improved time raises hours released and annual value.
- Get it right
- Use a trialled time where possible; an estimate tends to be optimistic.
What this means: Occurrences / week
- What it is
- How many times the task is done in a typical week, from records, system logs or a tally.
- Units and format
- Enter a number in times: times. The form accepts 0 times or more.
- Example
- The form opens with 400 times as a worked example. It is an illustration, not a recommended value: replace it with your own figure.
- Effect on the result
- Hours released and annual value rise in proportion.
- Get it right
- Count occurrences per week, not per day or per year.
What this means: Loaded labour rate
- What it is
- The full hourly cost of the people doing the task: wages plus on-costs such as superannuation, leave and payroll tax.
- Units and format
- Enter a number in $/hr: money per hour. The form accepts $0/hr or more.
- Example
- The form opens with $45/hr as a worked example. It is an illustration, not a recommended value: replace it with your own figure.
- Effect on the result
- Annual value rises in proportion.
- Get it right
- Use the loaded rate; the base wage understates the value of the time.
What this means: Implementation cost
- What it is
- The one-off cost of putting the improvement in place: equipment, software, training, trial time and project effort.
- Units and format
- Enter a number in $: an amount of money; use one currency for every money input. The form accepts $0 or more.
- Example
- The form opens with $6000 as a worked example. It is an illustration, not a recommended value: replace it with your own figure.
- Effect on the result
- Payback rises in proportion; it does not change the annual value.
- Get it right
- Include internal time spent on the change, not only purchases.
What this means: Working weeks
- What it is
- The number of weeks a year the task is actually done, after shutdowns and public holidays.
- Units and format
- Enter a number in weeks: weeks. The form accepts 1 weeks to 52 weeks.
- Example
- The form opens with 48 weeks as a worked example. It is an illustration, not a recommended value: replace it with your own figure.
- Effect on the result
- Hours released and annual value rise in proportion.
- Get it right
- Use working weeks, not 52, unless the task runs all year.
Method and formulas
- Hours released = (old − new minutes) × occurrences × weeks ÷ 60
- Annual value = hours released × rate
Limitations
- Released time is not automatically cash
Typical uses
- Kaizen and suggestion schemes
- Prioritising improvement ideas
Who it is for
- Team leaders
- Continuous-improvement staff
What you get
- Hours released and annual value
- Payback in months
Interpreting the result
- Name the work the released hours will do or the cost they avoid
BIZOMAT tools are screening and decision-support utilities. Verify important financial, engineering, safety, legal or operational decisions using appropriate professional standards and your organisation’s approved data.