5 YEARS PROJECTED COST SHEET FOR BPM IMPLEMENTATION

YEAR 0 1 2 3

Resource and Administrative Cost

Project Management $ 70,000.00 $ 70,000.00 $ 50,000.00 $ 50,000.00

Business Analyst $ 100,000.00 $ 80,000.00 $ 80,000.00 $ 45,000.00
IT Staff $ 120,000.00 $ 150,000.00 $ 130,000.00 $ 125,000.00
Training $ 55,000.00 $ 45,000.00 $ 35,000.00 $ 35,000.00
Quality Staff $ 60,000.00 $ 60,000.00 $ 60,000.00 $ 60,000.00
Management $ 110,000.00 $ 110,000.00 $ 120,000.00 $ 115,000.00
Testing $ 60,000.00 $ 65,000.00 $ 75,000.00 $ 55,000.00

Total $ 575,000.00 $ 580,000.00 $ 550,000.00 $ 485,000.00

Software and Hardware Cost

BPM Suite $ 88,000.00 $ - $ - $ 45,000.00

Standard Server S/W $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 7,500.00
Database $ 7,000.00 $ 7,000.00 $ 7,000.00 $ 8,000.00
H/W Provision $ 40,000.00 $ 15,000.00 $ 15,000.00 $ 15,000.00
Travel and Octroi $ 15,000.00 $ - $ - $ 10,000.00

Total $ 155,000.00 $ 27,000.00 $ 27,000.00 $ 85,500.00

TOTAL PROJECT COST $ 730,000.00 $ 607,000.00 $ 577,000.00 $ 570,500.00

Assumptions:
1. All costs are standard costs
2. All resources are as per approx. person hour employed in general BPM implementation
3. Maintenance cost are realized from YEAR 3
4. Salary hikes and resource movement costs has been considered
5. Costs realised at the end of year
 4 5 YEAR 0 1 2

Resource Distbn.

$ 55,000.00 $ 55,000.00 Project Management 2 2 1

$ 45,000.00 $ 30,000.00 Business Analyst 3 2 1
$ 125,000.00 $ 90,000.00 IT Staff 15 11 8
$ 35,000.00 $ 20,000.00 Training 5 3 3
$ 45,000.00 $ 15,000.00 Quality Staff 5 5 5
$ 110,000.00 $ 70,000.00 Management 5 5 5
$ 35,000.00 $ - Testing 5 6 8

$ 450,000.00 $ 280,000.00

$ - $ -
$ 7,500.00 $ 7,500.00
$ 8,000.00 $ 8,000.00
$ 15,000.00 $ 15,000.00
$ - $ -

$ 30,500.00 $ 30,500.00

$ 480,500.00 $ 310,500.00
3 4 5

1 1 1
1 1 1
7 6 4
1 1 1
3 3 2
5 4 3
5 3 0
5 YEARS PROJECTED BENEFITS BY BPM IMPLEMENTATION

YEAR 0 1 2

HARD DOLLAR BENEFITS

Increased Productivity / Efficiency $ - $ 135,000.00 $ 148,500.00

Paperless Office $ - $ 5,500.00 $ 5,500.00
Automation of certain processes $ - $ 125,000.00 $ 125,000.00
Reduction in Head Count $ - $ 90,000.00 $ 92,700.00
Faster Turn around Time $ - $ 80,000.00 $ 88,000.00

TOTAL $ - $ 435,500.00 $ 459,700.00

SOFT DOLLAR BENEFITS

Error Reductions $ - $ 65,000.00 $ 65,000.00

Increased Business Opportunities $ - $ 210,000.00 $ 220,500.00
Improved Quality $ - $ 50,000.00 $ 50,000.00
Reduced Time to Market $ - $ 85,000.00 $ 85,000.00
Reduced Cycle Times $ - $ 80,000.00 $ 80,000.00

TOTAL $ - $ 490,000.00 $ 500,500.00

TOTAL ANNUAL BENEFITS $ - $ 925,500.00 $ 960,200.00

Assumptions:
1. There is 10% increase in Production efficiency every year
2. The saving from reduction in head count based on the salaries of resource per year i.e., 3%
3. Savings from decrease in turn around time also increase by 10% every year
4. Assuming increase of 5% new business opportunities every year
<--
 3 4 5

Includes
$ 163,350.00 $ 179,685.00 $ 197,653.50 --> Fewer Disputes, Accurate Pricing
$ 5,500.00 $ 6,000.00 $ 6,500.00 --> Reduction in Paper and courier costs
$ 125,000.00 $ 125,000.00 $ 125,000.00 --> Online Audit trails, Streamlined activities
$ 95,481.00 $ 98,345.43 $ 101,295.79 --> Increased Accountability
$ 96,800.00 $ 106,480.00 $ 117,128.00 --> Efficient record tracking, effective resource balance

$ 486,131.00 $ 515,510.43 $ 547,577.29

$ 65,000.00 $ 65,000.00 $ 65,000.00 --> Accurate Processing

$ 231,525.00 $ 243,101.25 $ 255,256.31 --> New Clientele
$ 50,000.00 $ 50,000.00 $ 50,000.00
$ 85,000.00 $ 85,000.00 $ 85,000.00 --> More revenue
$ 80,000.00 $ 80,000.00 $ 80,000.00 --> More market share

$ 511,525.00 $ 523,101.25 $ 535,256.31

$ 997,656.00 $ 1,038,611.68 $ 1,082,833.61

Total Annual Dollar Benefits
urate Pricing
nd courier costs
treamlined activities

ing, effective resource balance

Corporate Figures

Period 5
Discount Rate 15%
Initial Cost $ 730,000.00

Annual Cash Flow

YEAR 0 1 2 3
Cost $ 730,000.00 $ 607,000.00 $ 577,000.00 $ 570,500.00
Benefits $ - $ 925,500.00 $ 960,200.00 $ 997,656.00

Net Benefits $ -730,000.00 $ 318,500.00 $ 383,200.00 $ 427,156.00

Present Value $ -730,000.00 $ 276,956.52 $ 289,754.25 $ 280,862.00

Calculations

ROI 212%

NPV $ 820,661.24

Payback Period
NIL NIL NIL 2.5813859573552

in Yrs 2.581385957355
in Months 30.97663148826

IRR 30%
 4 5
$ 480,500.00 $ 310,500.00
$ 1,038,611.68 $ 1,082,833.61

$ 558,111.68 $ 772,333.61

$ 319,102.16 $ 383,986.30

Recovered Recovered