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Summary, July 2014

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Challenge

Find a way to reduce $5,800 annual printing costs for two color printers.

• This was critical to do following the decision by the Chemistry department to continue to not account for use by student, much less meter their use.

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  • • Costs for providing the portion ChemIT could control was around $4,625 per year.

  Action, by ChemIT

  (Thank you, Michael Hint!)

  1. Enrolled in a service contract with Eastern.
     1. This service provides us cheaper Xerox-branded consumables.
     2. This included maintenance services for the printers, even if off-warranty.
  2. Bought a new, second color printer for a ninth of its expected cost.

  Result

  Effected recurring savings of almost $2,000 per year.

  • Reduced costs by over $1,000 per year for just consumables through use of new service contract with Eastern.
  • Saved $333 per year on warranty-type services, covering both printers. ($500/3 yrs * 2 printers)
    
    • Accomplished this by not having to pay $500 for 3-year warranty service on new printer, or similar services for old printer, since service included with new service contract with Eastern.
  • Saved ~$550 per year for new printer.
    • A new printer was bought at 1/

  ...

  • • 9th the expected price, giving the lab two, full color printers.
    • Assume printer survives 4.5 years.
  • Note 1: Paper costs remain as they were.
  • Note 2: On-going actual savings assumes Eastern delivers on their service promises, of course.

  Cost savings summary, PER YEAR

  Item	Annual Cost BEFORE	Annual Cost NOW	ANNUAL Savings
  Consumables ChemIT saved on (ink and maintenance kit)	$3,736	$2,718	$1,018/yr
  Warranty-type services (2 printers)	$333	0	$333/yr
  Recent printer purchase, amortized over 4.5 years	$556	$57	$499/yr, for just one printer
  Costs and SAVINGS, per year:	$4,625	$2,775, plus paper	$1,850/yr (40% savings)
  Paper (no ChemIT involvement) Assume: $4.73/ 500 pages	$1,200 (estimate)	$1,200 (same costs)	No change expected
  Costs and SAVINGS, per year:	$5,825	$3,957	$1,850/yr (32% savings)

  NOTE: On-going actual savings assumes Eastern delivers on their service promises, of course.

  DETAILS

  (1) Saving on consumables costs

  ChemIT

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  arranged for saving ~$1,000 per year by moving to Eastern service contract

  We are now on Eastern service contract, so our consumables and cost less. And our service costs are largely fixed, and also less.

  • We were paying about 1.89 cents per page for ink and maintenance kit replacement, on average. So for 280,000 pages (Dec 2012 - July 2014 (~17 months) from the oldest printer (Buckbeak); 40,000 from 2/14 to 7/14), that would be $5,292 ($3,736/yr). Service only if under warranty (new printer). Otherwise, for old printer, pay directlyfor repair services and parts out-of-pocket.
  • For the same volume, now we would have paid $3,850 over ~17 months (see below chart). For 17 months, thatThat's $2,718/yr.
    
    • That's a savings of $1,442 over 17 months, which is a savings $1,018/yr.

  Type of printing	Eastern's charges, per page	Page counts, As as of 7/24/14	Costs $
  B&W, or little color	0.7 cents	200,000	1,400
  More color	2.5 cents	65,000	1,625
  Full color	5.5 cents	15,000	825

  (2) Saving on capitalization costs

  New Xerox printer bought by ChemIT for less than 1/9th the expected price.

  New printer, with 3-year warranty, was expected to cost $2,500. During the summer 2014, Michael Hint bought the printer for $256.56!

  • Did this through loyalty rebate ($1,443.91) and trade-in ($224.75) of (old, broken Abruna) printer to Xerox.
  • Did not buy the extra warranty (~$500 more?for 3 years), since under Eastern service contract. So price of printer was $1,925.22, not the expected $2,500.
  • This gives Lars' s undergraduate lab two Xerox color printers. This new printer displaced a B&W HP printer, which went to Dan Lorey.

  ...

  Previous info, from Feb 2014

  Goal

  • Express the costs of consumables (over $12,100) to operate printer services offered for free to Chem majors, over a period of 1.5 years. Does not include the cost of the $2.5K printer itself.

  Summary

  Consumables = (Ink + maintenance kits) + paper = $10,200 + $1,930 = $12,130 over 33 months.

  This comes to about $4,411/year.

  Data and analysis

  Page counts	Dates	Count of months	Avg pages per months (including summers) Most uses is Jan/Feb. and Aug/Sept	At 1.53 cents/ page, for just ink (a consumable)	At  0.36 cents/ page, for just maintenance kit (another consumable)	Cost for both consumables (NOT paper)
  300,000	May 2011 - Nov 2012	19 months	15,000 pages /month	$4,585	$1,080	$5,670
  240,000	Dec 2012 - Feb 2014	14 months	16,000 pages/ month	$3,665	$865	$4,530
  Total: 540,000	May 2011 - Feb 2014	33 months	15,430 pages/ month	$8,250	$1,945	$10,200

  Hardware costs, including "consumable" maintenance kits

  Printer's initial cost, including 3 year warranty: $2,500

  • Amortizing cost of printer over 540K pages printed comes to 0.46 cents per page.

  Cost for maintenance kits, up to now: $1,945

  • 10 have been installed for the most recent 240,000 pages, at $86.40 each: $864 + $1 = $865
  • Thus estimate we 1.25 additional kits (~12.5 kits) for the first 300K pages printed: $1,080

  Thus, $4,445 spent so far on hardware, including maintenance kits.

  Ink cost calculations

  Total ink costs: $8,250

  Usage Dec 2012 - Feb 2014

  Ink Stick color	Use	6 Sticks per package	Cost per package (These are Michael Hint's costs; Lars may pay more?)	Total costs
  Cyan	28	4.67	$69.65	$325.26
  Magenta	24	4.00	$69.65	$278.60
  Yellow	22	3.67	$69.65	$255.62
  Black	76	12.67	$221.40	$2,805.14
  			Total ink costs for 240K pages:	$3,665

  • $3,665 for 240,000 pages comes to 1.53 cents per page, on average.
  • Thus, estimate that an additional 300,000 pages used previously (1.25 as much again) would cost about $4,585.

  Paper costs

  Cost for paper, up to now: $1,930

  • 0.575 cents per page, if buying cheap and you don't care about the environment.
  • Total of 335,000 sheets of pater used.
    • 149,000 paper sheets used for 240,000 pages printed.
    • Thus estimate that an additional 186,000 paper sheets used for previous 300,000 pages printed.

  Paper purchase cost options

  0.575 cents/ page for Staples® Copy Paper, LETTER-Size, 92/104 US/Euro Brightness, 20 lb., 8 1/2" x 11", 5,000 Sheets/Ct (if $28.77 for 5000 sheets).

  1.03 cents / page for Staples® 30% Recycled Copy Paper, LETTER-size, 92/104 US/Euro Brightness, 20 lb., 8 1/2"H x 11"W, 5,000 Sheets/Ct ($51.59 for 5000 sheets)

  • Contains at least 10% post-consumer recycled content

  (3) Assumption: No change in costs of paper.

  Paper costs holding steady at $1,670/year.

  ChemIT not involved at all on paper procurement. Did not invest in determine actual costs, so made estimates based on assumptions stated below.

  Paper sold by CCB stockroom is $4.73 for ream (500 pages) of 8-1/2"*11" paper.

  • Thus: $0.00946/ paper. (That's 0.946 cents per paper page.)
  • To get paper used, used snapshot that 148,666 paper was used to print 231,116 imprints (due to double-sided jobs), or 64.3%.
  • Of 280,000 pages printed, can estimate 180,000 paper sheets used (due to double-sided jobs).
  • Of 180,000 paper sheets used over 17 months, that comes out to about 127,000 paper sheets used per year.

   

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  Children Display
  style h1 excerpt true

  0.67 cents/ Staples® 100% Recycled Copy Paper, LETTER-size, 92/104 US/Euro Brightness, 20 lb., 8 1/2"H x 11"W, 5,000 Sheets/Ct ($33.43 for 5000 sheets)