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Starting Thanks largely to Michael Hint, starting summer 2014, ChemIT saving produced on-going savings of $1,850 per year (a 40% savings ) for on prices ChemIT involved in) to provide full-color printer services offered, for free, to Chem majors, in LarLars' s undergraduate (Mac) lab. This included procuring a new, second, full-color printer for almost nothing. |
Summary, July 2014
Challenge
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Find a way to reduce $5,800 annual printing costs for
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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.
- Costs for providing this service runs over $5,000 the portion ChemIT could control was around $4,625 per year.
Action, by ChemIT
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(Thank you, Michael Hint!)
- Enrolled in a service contract with Eastern.
- This service provides us cheaper Xerox-branded consumables.
- This included maintenance services for the printers, even if off-warranty.
- Bought a new, second color printer for a ninth of it's its expected cost.
Result
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Effected recurring savings of
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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 | Annual Cost NOW | ANNUAL | ||
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Consumables ChemIT saved on | $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, | ||
| Costs and SAVINGS, per year: | $4,625 | $2,775, | $1,850/yr (40% savings) | ||
| Paper | Unknown | (no ChemIT involvement) Assume: $4.73/ 500 pages | $1,200 (estimate) | $1,200 (same costs)Unchanged consumption | No change expected |
| Costs and SAVINGS, per year: | $4$5,825 | $3,957 625,plus paper $2,775, | $1,850/yr (40% 32% savings) |
NOTE: On-going actual savings assumes Eastern delivers on their service promises, of course.
DETAILS
(1) Saving on consumables costs
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- 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 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.
(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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