10.Recommendation by automation system selection

I will automate my enterprise with 1C system. I chose this system for automation, because this system is widely spread, many another companies use 1C, that say about quality and reliability of this automation system. Also I want that my company will have a skills in working with this system. In the whole packet of installation of 1C we have a stage that propose the training of the staff . 1C works in a fast way processing more than 1000 orders. So, my enterprise will serviced in a short time. So, also the installation of this system 1C will take not so many time.

Because of this things I will chose for my enterprise 1C system for automation.

11. Estimate the total cost of ownership of the system

In this part of complex task it’s possible to estimate ownership cost using return of investment(RIO) parameter. RIO allows to estimate pay back period, that must not exceed 6 years. In our complex task we’ll calculate the ownership cost for 5 years.

The RIO can be calculated as:

*100%,

Where

Bn-benefits, obtained due to system implementation

En-expenses

Dn-discount rate

n-year of system running(n=1,2,3,4,5)

So, let’s calculate benefits obtained due to the system implementation in the following way:

1)Income Increased on 15%- B1=LN+LN*0,15=10000000+(10000000*0,15)= 11500000 UAH

2) increased on 20%-B2=B1+B1*0,2=11500000+(11500000*0,2)= 13800000 UAH

3) increased on 25%-B3=B2+B2*0,25=13800000+(13800000*0,25)= 17250000 UAH

4) increased on 30%-B4=B3+B3*0,3=17250000+(17250000*0,3)= 22425000 UAH

5) increased on 30%-B5=B4+B4*0,3=22425000+(22425000*0,3)= 29152500 UAH

Now we will calculate our expenses by the next formula:

1)E1=Budget=6000000 UAH

2)E2=0,1*Cs=0,1*2400000=240000 UAH

3)E3=E4=E5=0,1*2400000=240000 UAH

The discount rate can be calculated as:

,

where k=30%(discount coefficient)

So

1)D1=1

2)D2=0,77

3)D3=0,59

4)D4=0,46

5)D5=0,35

And finaly, let’s calculate ROI:

ROI1= =91,66%

ROI2= =5650%

So, how we can see we can stop on that because my enterprise will compensate the expenses during less than 2 years.

CONCLUSIONS

At this complex task I provide the automation for my enterprise “ICEBERG” that produces the metalic details . So, in the first stage . My enerprise consists of 11 departments. Also we have 4 project managers and 1 General director.

. So, in the first stage , I chose the step-by-step automation, because I think, that the enterprise must provide automation consequently. For my enterprise I use the staff structure. Staff structure uses in the case of step-by-step automation. I have enough budget for the consudering of all the profits like consulting, system providing , staff training and also for the paying of sallaries for implementation groups. Also I build the timetable for the providing of our automation system, during 1 year all the system will provide in a whole type. Next I describe all my enterprise, including every project manager and also every implementation group. Every project manager is a header of own implementation group. Top-manager is a header of all enterprise and he controls the execution of all the tasks and orders in the enterprise. Next I calculated the throughput for my enterprise and because of througput I changed FastEthernet and put the GigabitEthernet. So, because of it my system will have a greater speed and efficiency. Next I did the market review. I consider 3 systems-PARUS, Galaxy,1C. And in my enterprise I installed 1C system.