Cost Reduction Calculator

Here, you will be able to see the estimated annual savings and ROI (Return on Investment) expected by using MATRIX.

Cost Reduction Calculator

*Required fields
Currency
MATRIX Cabinet model
Number of machine tool operators
Number of active cutting tools (SKU)
Number of cutting tool suppliers
Number of machines
Annual cutting tool consumption
Value of cutting tool inventory
Average number of visits to tool room per day per machine operator
Expected time reduction in issuing or returning an item by using MATRIX *It takes about 10 seconds (0.1 minute) to issue an item with MATRIX.
Hourly wage of an operator
Average number of purchase orders for active items
Expected time reduction in storing an ordered item by using MATRIX *It takes about 10 seconds (0.1 minute) to store an ordered item with MATRIX.
Average number of purchase orders per supplier
Average time spent on opening a purchase order
Machine hour rate
Number of hours machines are operated in a day

*In the below fields, enter the cost reductions (in percentages) you expect to see by using MATRIX. MATRIX’s automatic ordering system helps you maintain proper inventory level and reduce unnecessary stock. Also, analyzing the usage reports will assist you in improving your business workflow and lead to further cost reduction. If each category goes down by even 2%, you can expect a considerable return on investment.

Reduction in machine downtime caused by lack of tools MATRIX’s automatic ordering system helps maintain proper inventory level.
Reduction in machine downtime caused by looking for tools MATRIX eliminates time spent on looking for tools and lengthy processes to check them out.
Reduction in tool consumption MATRIX’s usage reports help identify outliers and improve tool management.
Reduction in stock levels MATRIX automatically calculates proper inventory level and helps reduce unnecessary stock.
Reduction in dead stock MATRIX’s report features help identify unused tools.

Simulation Results

Total Annual Savings

 4903746USD

See the breakdown

Labor costs for issuing and returning tools 1314500USD
Labor costs for storing tools received from suppliers 1284864USD
Labor costs for placing orders for new tools 477522USD
Machining costs during downtime 1629360USD
Tooling costs for unnecessary tool usage 147500USD
Inventory costs for maintaining unnecessary stock 50000USD

ROI (Return on Investment)

 Period required to recover costs for installing MATRIX 9 months

  • The installation of MATRIX does not guarantee the cost reductions calculated on this page as actual results will vary depending on the customer’s business environment.