Executive Summary


It was obvious that repositioning the parts room would save time but will it save ample time to make the change worthwhile? We could possibly calculate the savings in minutes per day for the team. Let’s say we could realistically save 20 minutes per day per mechanic. So, for 17 mechanics, it would be 340 minutes per day. For this, I developed a universal formula to calculate ROI in any currency with any labor rates from labor savings in minutes. There are two assumptions: Any savings should generate a 50% ROI or a 2 year payback and the total cost of a worker is 2.5 times their hourly wage. Savings in Local currency = Labor rate in local currency * savings in minutes * 20