ValueAdded Approaches and Project Scoring

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Value-Added Approaches and Project Scoring

• EIN 4335 Senior Design Project

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Outline

• Labor Savings
• Non-Labor Savings
• Cost Avoidance
• Revenue Enhancement

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Labor SavingsImprove Efficiency and Reduce
Expense

• Time management techniques
• Incentive programs
• Short interval scheduling
• Improved workstation/workplace layout
• Improved employee training/job proficiency
• Reduce excess staff
• Add work activities and under-utilized staff
• Reduce temporary and agency staff

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Labor Savings Reduce Workload

• Work methods simplification
• Process improvement
• Reduce labor costs by changing skill mix
• Ergonomic workplace analysis

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Labor SavingsImprove Labor Utilization through
Staff Scheduling Analysis

• Reduce overtime
• Reduce shift differential and on-call
• Reduce fixed activities
• Accommodate workload peaks and valleys

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Non-Labor SavingsEvaluate Materials and Supplies
for Reduction

• Rate of usage per procedures
• Purchase price
• Comparing costs of reusable items to disposable
  items
• Inventory level analysis

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Non-Labor SavingsConduct Waste Analysis

• Expiration, breakage and pilferage of items
• Waste due to product contamination
• Multiple uses of supplies for same or different
  purposes
• Resale/recycle of used supplies

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Non-Labor SavingsReduce Contract / Consultant
Costs

• Negotiations
• Bidding
• Bonus/ penalty clauses

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Cost Avoidance

• Use internal consulting services instead of
  outside consultants
• Reduce unit cost

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Revenue Enhancement

• Use existing equipment and/or staff level to
  perform more procedures / increase throughput
• Update existing equipment / technology

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Project Scoring
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Project ScoringScoring Matrix to Evaluate
Alternatives
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Project Scoring

• Calculate the following for each proposed
  alternative
• Stakeholder factor score
• Operational factor score
• Financial factor score
• Total score
• Compare factor scores and total scores to assist
  in making the final recommendation

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Project Scoring Summary