Assignment No: 2

1:
Operational Results ( Return) = Sum of P.U cost

Errors Before Errors Cost Difference P.U yearly cost

After per
Bottle
Bottle 5000x12=60,000 2000 x 12 = 24000 20 Rs. 60,000-24,000 36000 x 20
Manufacturing = =
36000 720,000
Bottle cap 15 x 365 = 5475 5 x 365 = 1825 50 Rs. 5475-1825 3650 x 50
= =
3650 182500

Printing errors 50 x 365 = 18250 15 x 365 = 5475 10 Rs. 18250 – 5475 12775 x 10
= =
12775 127750
Wrapping 1000 x 12=12000 250 x 12 = 3000 200 Rs. 12000 – 3000 9000 x 200
errors = =
9000 1800,000
Filling errors 30 x 365 = 10950 5 x 365 = 1825 25 Rs. 10950-1825 9125 x 25
= =
9125 228125
Mixing errors 100 x 12 = 1200 20 x 12 = 240 200 Rs. 1200 – 240 960 x 200
= =
960 192000
Operational results = 720,000 + 182500 + 127750+ 1800000 + 228125 + 192000
Operational results = 3250375

2:
Return on investment:-
As,
Operational results
ROI =
Training cost
Where,
Operational result = 3250375
Training cost = 1500,000
So,
3250375
ROI =
1500,000
ROI=2.17

3:
Amount of saving:-
Saving = Operational result -Training cost
Saving = 3250375 - 1500,000
Saving = 1750375
Conclusion:-
So, the saving amount shows that the training program is
effective.
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