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Tuesday, November 27, 2007
IT Customer Services Manager
Summary: By implementing RFID technology to facilitate asset management, the MTC will benefit from increased accuracy in reports in addition to earning a ROI of 211% and total savings of $8,145 in the first five years
Dear -:
One of the persistent problems in asset management for the MTC is the scanning process required each quarter to take inventory. This process is tedious, takes several days to finish it, and usually has to be partly redone due to human error. Due to these factors, we have had to start the inventory process earlier and spend more time on it in order to meet the deadlines for completing the quarterly inventory report.
The Desktop Management team has been researching and evaluating ways to improve the inventory process. One of the options we have been evaluating is the implementation of Radio Frequency Identification, or RFID. The cost of RFID has been reduced dramatically over the past few years, and is now a viable solution for resolving many of the problems that we now face with the inventory. RFID will allow us to reduce the number of IT staff that we use for scanning computers, while improving the timeliness and accuracy of the final report. As a result of the time saved, it will also reduce overall costs at the MTC, allowing us to save a significant amount of money in the long run.
Our proposed solution fits well with the current technology used by the MTC, and will allow for continued improvement in the future.
Estimating a cost of 15 dollars per hour, implementing RFID would save the MTC $600 every inventory scan. Costs of implementation fall into two categories: the handheld scanner and the RFID tags. The scanner will cost $3,060, and the tags will cost $800 (.53 * 1500) for a total cost of $3,855. A look at the following chart will show us the breakeven point and 5-year Return On Investment.
As the chart shows, the breakeven point would be 7 inventory scans, or 1 ¾ years. The 5 ROI would be 211%, with total savings of $8,145 ($12,000 - $3,855).
Other Benefits:
· Store more information about each computer
· Reduce probability of missing laptops
· Prepare for further growth
· Less interruptions of missionary time
· Drastically reduce the need to re-scan areas
· With more free time, TSR and DEG can improve other areas
We feel that the benefits of implementing RFID far outweigh the costs. As a result of using RFID for asset tracking we will be able to reduce the time it takes to collect and organize inventory and increase the time we will be able to spend on additional projects that will create worth for the MTC. Doing so will help increase the spirituality and preparedness of the missionaries and further the goals and aims of the MTC.
Sincerely,
Desktop Management
