The basic calculation
Multiply time per execution by frequency and the approximate hourly cost of the people doing the work. Converting it to monthly or annual terms makes comparison with an improvement project easier.
The number does not need accounting precision. Its purpose is to create a consistent reference for prioritisation.
- Time per execution
- Runs per week
- People required
- Hourly cost
- Working weeks
Add the costs that stay hidden
The visible task may create work around it: review, correction, waiting or interruption of higher-value activity.
Not every cost needs a perfect monetary estimate. Recording it prevents an idealised manual process being compared with a realistic automation project.
- Rework
- Errors
- Supervision
- Waiting
- Context switching
Separate savings from capacity
Automating ten hours does not automatically remove ten payroll hours. Often the value is released capacity: serving more customers, reducing backlog or letting skilled people focus on higher-value work.
Express the outcome both as equivalent effort cost and recoverable hours.
- Hours released
- Shorter cycle
- Greater capacity
- Fewer incidents
Use the number to prioritise
Compare several processes using the same method. An expensive but complex process may rank below a slightly smaller one that is easy to automate and measure.
Ordexian's free calculator estimates the direct cost of a repeatable task and provides a starting point for deeper analysis.
- Annual cost
- Impact
- Stability
- Improvement effort
- Risk
Put numbers behind manual work.
Use the free Ordexian calculator to estimate the annual hours and direct effort cost of a repetitive task.
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