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Eliminating Paperwork Is More Than Just Efficient

Intermec Technologies Corporation

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By Intermec

The most common area of savings from automated data collection is labor costs. Entering data with a bar code or RFID scan saves time compared to pencil and paper, which makes workers more productive. Replacing paper based maintenance procedures with automated systems can give technicians up to 40 percent more productive time and improve productivity by 18 percent according to a study performed by Syclo, a leading mobile maintenance solutions provider.

Once data is collected, it can easily be shared among different applications and computer systems, with no need for clerical data entry. When gauging the potential labor savings of an Automated Data Collection (ADC) system be sure to consider the effects on both point-of-work activity and back-office operations.

Here is an example of how a simple ADC system can produce back office labor savings, and how to measure them. Let's say you are going to implement an automated work order system that will eliminate hand keying of work order updates such as time to fix, parts used and technician notes. Currently, two people in the office spend an average of 20 hours per week each, or 1,040 hours per year each (20 hours/week x 52 weeks/year), entering work order data. The new automated system that updates work orders collecting and transmitting information in real time will completely eliminate this task. Assuming that the average earnings of these data entry clerks are $10.00 per hour, plus taxes and benefits of 25 percent, the variable cost of this labor is $12.50 per hour. Thus the total annual back office labor savings from automating this data entry is $26,000 per year (2,080 hours x $10.81/hour).


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