Cost and Benefits. Total costs of the program are paid by all employees in the bargaining unit through payroll deductions at the rates set by the established plan. Participation, costs and benefits of the program are subject to the regulations and requirements of the Plan.
Cost and Benefits. The consignment depot scenario was implemented for one product be- ginning in January 2001; a second product was added in June 2001. Since October 2001 all Xxxx deliveries to BASF Coatings inside Germany are handled through this collabo- rative process. Further rollouts for the European BASF Coatings plants are in the imple- mentation phase. An extension of these solution elements to other customers is in prepara- tion. The implementation of the consignment process has led to closer cooperation between Röhm GmbH & Co. KG and the strategically important client BASF Coatings AG. Both partners were able to reduce process cost and throughput times. Xxxx is able to plan its monomer production with greater accuracy and to keep BASF Coatings’ consignment depots filled automatically. The electronic exchange of documents has replaced the paper-based exchange. Additionally the new accounting process replaces invoice monitoring. BASF Coatings will not need to tie up capital in safety inventory of monomers in the future, can eliminate the order and quality testing steps, and simplify the settlement process. The partners calculated a joint cost savings volume of 500,000 EURO per year, with order costs alone accounting for 100,000 EURO so far. Table 4-1 provides an overview of the benefit realized. The newly implemented consignment process involves five Röhm employees directly (two in sales, two in production, and one in accounting). The system was accepted very well by them in the beginning. Since the cooperation with BASF Coatings is of a pilot nature, however, the staff must service two processes. All other customers continue to use term orders. This resulted in the employees’ partial use of the old channels (telephone and fax) even for the collaboration with BASF Coatings, until this was strictly forbidden by management. For Xxxx the stated potential is therefore most likely only realistic in the medium-to-long term if it succeeds in processing the largest possible share of its sales volume via the consignment scenario. Overview VMI-Scenario between Xxxx und BASF Coatings Expense Project Timespan 19 months (April 2000 - October 2001) Project team - Specialty - IS/IT - BASF Coatings 11 Persons - 4 persons - 3 persons - 4 persons Project expense (person/days) - Specialty - IS/IT - BASF Coatings 100-110 p/d without expense at BASF Coatings - 20-30 p/d - 80 p/d - no expense Project costs 200,000 EUR Hardware and software costs ca. 50,000 EUR Operation n/a Benefit realiz...
Cost and Benefits. Analysis Contractor will conduct an abbreviated cost and benefits analysis for the current NM CSES as compared to the identified alternatives from the Alternatives Analysis, section 2.6.
