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Tape Adding Machines - A Very Expensive, Unnecessary Addiction
By George
The mechanical paper tape adding machines setting on corporate desks next to high priced personal computers are not normally thought of as an inordinate expense. In fact, it is my experience that those mechanical machines are considered by companies to be a necessity. Nothing, in my opinion, could be further from the truth on either count. Those antiquated, mechanical dinosaurs can actually be a very expensive and unnecessary addiction to which there is an inexpensive alternative.
Hypothesis
My hypothesis is that mechanical paper tape adding machines, or printing calculators, are no longer viable office equipment when they are sitting next to personal computers. Pencil and paper spreadsheets pretty much disappeared shortly after the advent of the personal computer. This migration of spreadsheets to was seen as a very sensible move since electronic spreadsheets provided much more functionality in a very easy to use format.
A similar migration, in my opinion, is long overdue for mechanical paper tape adding machines. With the availability of feature rich adding machine programs like myOwn10-Key, it no longer makes sense to continue using the costly, feature deprived mechanical devices. The electronic adding machines, like electronic spreadsheets, offer much more functionality in a very easy to use format. Electronic tapes also contribute significantly to the bottom line when compared to antiquated printing calculators.
Analysis Factors
To test my hypothesis, I did an ROI analysis of converting to myOwn10-Key for United Parcel Service. Why choose Brown? Because the UPS web site displays very detailed technical information for the company. The number I needed was a count of personal computers in use at UPS. As of Sunday, August 5, 2007, the number of LAN Workstations in use at UPS was listed on their web site as 149,000. That was the starting point for my calculations.
Here are the other assumptions I needed to complete the analysis. I tried to be on the conservative side for all of these factors.
* Percent of personal computers with a printing calculator sitting beside it - 30%.
* Price of paper rolls - $8.48 / 12 pk.
* How often a new paper roll is installed on each printing calculator - every 2 months (6 / yr).
* Price of printer cartridges - $3.00 ea.
* How many printer cartridges are consumed on each printing calculator - 1 / yr.
* Percent of printing calculators replaced per year - 10%
The cost of purchasing mechanical paper tape adding machines for new employees is not considered in this analysis. Also not considered in the additional cost of the power required to operate the mechanical adding machines.
Annual Cost Of The Dinosaurs
For this analysis, I created an ROI analysis etape with myOwn10-Key. You can view the entire analysis etape in another browser window or tab by clicking on the "View eTape" link in the resource area at the end of this article. I encourage you to click on that link now so you can follow along on the etape.
The etape calculates the annual expense of maintaining an estimated population of mechanical adding machines first seen on line 4. As seen in the first part of the etape (lines 1 through 33), the annual expense of maintaining the printing calculators, is, in my opinion, revealed as something much more than trivial. On line 33 you can see that the annual price tag for keeping all those mechanical tape adding machines on desks next to personal computers is just under $550,000.
The next question is what would happen if those antiquated dinosaurs were replaced with a full featured adding machine program like myOwn10-Key? The
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