Safety & Survival Systems

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1 Safety & Survival Systems CheckedOK: Costs & Benefits How to assess the value of Automated Inspection with CheckedOK The CheckedOK automated inspection and reporting system improves the productivity of engineers working on safety and maintenance inspections. The costs of implementation are low but, even so, every investment needs to be justified, demonstrating that it provides value for money. While it is tempting to create some sort of all-purpose ROI calculation template, such an approach can be misleading. In reality the return on investment from a system of this type is different for every organisation. This short guide provides a way to assess the likely costs of a system and the value of potential benefits. It should help you to identify the main categories of tangible savings and the intangible savings that can also contribute to a decision to go ahead. Costs & Benefits Increased engineer productivity as a result of removing paperwork is the biggest benefit delivered by the CheckedOK system. Most users of CheckedOK discover that the system has an impressively rapid payback, usually well within the first year's operations, mainly as a result of this. Often the cost-benefit equation is as simple as saving one engineer's time more than justifies the cost of the system. CheckedOK is a maintenance inspection system that makes the collection of inspection data faster and more accurate. It works on the basis of tags attached to assets which can be read with handheld computers used by inspecting engineers. Data collected is transmitted to a central database allowing the results to be shared with all that need them and to schedule future work. CheckedOK users see productivity improvement for inspecting engineers as the biggest benefit area. However for many users the issue is not a simple financial equation but one of better competitiveness or improved service to customers or other departments and better safety. Savings come from improvements in the efficiency of inspection operations, with less time spent on recording the results of inspections, less time spent identifying specific items of equipment and less time spent in communicating the results of inspections back to the centre. In addition users find benefits coming from better awareness of the whereabouts of assets (the system often uncovers items that were previously thought to have been lost). There are also asset related benefits that come about as a result of reducing time lost through unexpected equipment breakages and, of course, because of the improved inspection regime, reduced time lost through accidents associated with equipment failure. An additional area of benefit can be realised by users of CheckedOK that are service provider or facilities managers. CheckedOK allows results of inspections to be shared with clients. Many of our users find that this service is valued by their clients and so represents a competitive advantage for them, with consequent improved contract win rates and better customer retention. The costs associated with the deployment include the capital costs of equipment and software (although this can be minimised through various financing or managed service options) and the costs associated with the introduction of new working practices.

2 Exploring The Benefits "Soft" benefits may prove hard to value but are an important part of the rationale for investing in a system liked CheckedOK. The relevance and value of these will depend very much on the nature of the user's business and the way it works with its client departments but areas where CheckedOK customers report improvements include: More accurate reporting on inspections leading to better client satisfaction. More up-to-date reporting on inspections leading to better client satisfaction. Demonstrable conformance to regulations gives clients greater confidence in the service provider. Immediate access to reports gives clients increased confidence in the service provider. Improved feedback on faulty items means they get fixed sooner, lower risks of failure and accidents. Improved feedback on items likely to fail avoids risk of failures and resulting disruption to other processes. Improved client satisfaction eases contract renewals, helps win new clients by giving better competitive differentiation. CheckedOK does, however, contribute to actual cash savings. Areas where users of CheckedOK can expect to make savings include the following:- Improved service engineer productivity by reducing service engineer time on individual inspections (typically 20%); same number of inspectors handle more inspections or fewer inspectors. Reduced inspection engineer time completing inspection reports (typically 100%); same number of inspectors handle more inspections or fewer inspectors. Better utilisation of inspection staff through better scheduling, less time wasted looking for assets needing to be checked. Reduced back-office staff time in data entry of inspection reports (typically 100%). Reduced back-office staff time in scheduling inspections. Reduced back-office staff time in identifying lost assets, through improved recording of asset locations. Reduced asset costs (no need to replace "missing" items). Key Benefits The CheckedOK solution has some important benefits for mobile inspections: Many common check forms pre-built and ready to go. New forms can be created by your staff or by us. Supports visual asset identification, barcode and RFID. Automatically generated certificates for LOLER and PUWER checks. Information can be shared with site staff and clients. Holds orginal manufacturer certificates alongside current checks for complete history. Hosted server option minimises installation costs. Responsive UK based support operation. Although cost savings are an essential part of the considerations when deploying a system such as CheckedOK, it should not be forgotten that the only savings worth considering are the ones that can actually be realised. The value of saving time is only a real benefit if the time saved can be used for other task or if it allows resources required for a particular task to be reduced. Identifying The Costs Set against these savings the costs of implementing a solution such as CheckedOk are relatively small. It is also possible to phase in the introduction of a system so that costs are incurred in line with benefits achieved. Costs can be broadly divided up between those initial costs of getting the system set up and installed and those recurring costs of keeping the system operational. A further subdivision exists between those costs that fall outside a user's business and those that are internal or own-staff related costs. As one of the features of CheckedOK we offer hosted application software that reduces the need for capital costs. Those areas where CheckedOK avoids the needs for initial and recurring server costs are marked *. We also offer our users the option of a fully managed service for handheld devices that provides mobile inspection capability for a simple monthly fee per user. The areas where a CheckedOK Managed Mobile Solution are indicated with a +.

3 Initial asset related costs include: Asset costs : costs of tags typically start at 1 per tag for RFID (more for ATEX compliant tags or heavy duty tags), less for heavy duty barcode tags or other labels. Costs of adding tags to assets (maybe integrated in the next round of the inspection process for example, or even by arrangement with the original manufacturers of the asset). Costs of training staff in adding tags to assets. Costs of linking tag data with existing asset management system's data if present. Initial costs related to inspecting engineers include: Costs of hand-held computer systems (typically depending on specification)+ Costs of hand-held inspection management software (typically per user)+ Costs of implementing inspection questionnaires (For CheckedOK often nil, as the system contains many as standard) Costs of adapting handheld software to user specific requirements. Costs of changes to working practices, staff training. Costs of GPRS charges for reports submitted if using real time feedback of results. Initial costs related to the central office system include: Costs of hardware and systems software related to central server for database (typically nil for CheckedOK customers using our hosting service).* Cost of software licenses and installation. Costs of customisation to own use (if needed). Costs of initial training on use. Recurring costs for the overall system should allow for: Maintenance costs for inspecting engineers handheld devices* Maintenance costs for central server (included in CheckedOK hosting costs)+ Management of server and back-ups (included in CheckedOK hosting costs)+ Software maintenance for server and handheld software components. Cost Saving & Performance Improvement Our users tell us that CheckedOK pays for itself quickly, especially when replacing a manual record keeping systems. Automating the recording of inspection results saves engineer s time and reduces errors. It helps minimise the need for repeat visits. Missing items can be notified quickly, reducing loss and theft. Eliminating manual records saves administrative effort. Information from CheckedOK can be used to update asset recording systems, eliminating time-consuming and error prone manual input. All of these can contribute to costs savings from a system such as CheckedOK. By automating the process, CheckedOK makes best practice, easy practice. One way in which CheckedOK can be introduced is by using a phased approach. Users can start off with automated questionnaire handling for engineers but using existing asset labelling systems. Engineers visually identify assets, saving the costs of tagging but needing more time to identify assets. Later on it is possible to introduce barcode and/or RFID tags for assets with the associated costs of tags and reading devices and the related benefits of faster, more efficient asset identification. Equally it is possible for CheckedOK to support a hybrid solution in which some assets are barcode tagged, some visually identified and some recognised electronically using RFID.

4 Cost - Benefit Checklist Use this table to work out your own cost-benefit assessment for an improved asset inspection system such as CheckedOK or call us for a discussion about how we could help you to build your detailed assessment. Value of Benefits Savings from inspection engineer productivity improvement. Asset cost savings from better information on location. Costs Benefits from improved competitiveness / better customer service. Benefits from improved safety / reduced equipment failure as a result of better inspection. Total Benefit Value Handheld systems for engineers Asset tags (visual / barcode / rfid) Inspector software costs Central software systems costs Software customisation costs Training, working practice change & other installation costs Hardware & software maintenance costs Network service costs Total Costs Costs Less Benefits Cumulative Costs Less Benefits Year 1 Year 2 Subsequent Years

5 About CoreRFID Contact us at: CoreRFID Ltd. Dallam Court, Dallam Lane, Warrington, U.K. WA2 7LT T: +44 (0) F: +44 (0) W: E: CoreRFID is an associate member of the LEEA.

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