Evaluation of word processing cost effectiveness

Author

Nicholas E. Tedesco, New Jersey Institute of Technology

Document Type

Thesis

Date of Award

9-30-1987

Degree Name

Master of Science in Management Engineering - (M.S.)

Department

Industrial and Management Engineering

First Advisor

Daniel S. Walsh

Abstract

The objective of this thesis is to examine the use of word processing technology to determine if its implementation is a cost effective investment. This will be accomplished by comparing the cost of a typewritten page before and after the implementation or upgrade of word processing equipment. The degree of utilization and the impact of utilization on standard costs will also be examined.

Significant difficulty was encountered attempting to locate and compile statistical information on word processing. Therefore, a questionnaire was developed and distributed to the 100 largest public and 100 largest private companies headquartered in New Jersey, requesting information regarding their word processing experience. An 18.6% response rate was achieved from this distribution.

Conclusions derived from the survey responses are:

1. The actual cost per page on the respondent's current system is 41% lower than the actual cost per page for their prior system. However, the average utilization rate of 33.32% indicates that the additional capability of the upgraded systems is not effectively utilized, which results in a standard cost per page 76% higher than the standard cost per page of prior systems.
2. 2. Statistical correlations were found to exist between a companies' implementation motive and its utilization percentage. It was discovered that companies with typing productivity improvement implementation motives have a higher utilization percentage, and that implementation studies positively influenced these companies' effective equipment utilization. These companies achieved a 21.7% reduction in the standard cost per page on their current system versus prior system. Therefore, it appears that companies who effectively utilize the additional capacity of their upgraded systems gain both benefits of more output and reduced unit cost.

Recommended Citation

Tedesco, Nicholas E., "Evaluation of word processing cost effectiveness" (1987). Theses. 3328.
https://digitalcommons.njit.edu/theses/3328