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MEMORANDUM TO: J. Willard McGillivary FROM: Richard Holt DATE: June 10, 2005 SUBJECT: Photocopy Machines Summary In the past couple of months, there has been a serious problem in our company. The photocopier, which we currently own: Canon Model 4967, has been malfunctioning, bringing the entire working process in our company to a halt. This problem has a very simple solution: purchasing new, more economical machines, which will be more efficiently used by the staff in order to bring larger revenues to the company. The cost of these machines will be $ 2, 323, which is the amount that is paid monthly for the leasing of our current photocopier.
Introduction T. J. Pratt and Company is currently facing a problem that is very important. The photocopier does not function effectively. In the last couple of months it has been breaking often and it has not been fixed on time, due to the fact that there was nobody to report the fact of the break. The constant breaking of the photocopier stops the work of the departments and can be the cause of many monetary losses.
I, being a worker who sold last year $ 687, 897 worth of company product, nearly missed a great deal worth $ 250, 000 due to the fact that the photocopier was not working Background T. J. Pratt and Company was formed in 1942 and manufactures and sells garden hoes. The company has grown out to be a very big and productive company, which currently has 114 people employed on the full-time payroll.
The print shop is located in the basement of a now unused portion of the factory, a five-minute walk from almost all clerical positions that use the copier. The Model 4967 is located in the old print shop due to the size of the model. The print shop is no longer staffed since the last full-time operator retired and during a down-sizing operation was not replaced, thus there is nobody designated to service the copier. The photocopier that is currently used is a Canon Model 4967. This model can produce 16, 000 pages an hour of two-sided stapled material. It is a high-speed document-processing machine capable of printing from networked computers.
The current Model 4967 is not networked with office computers, and is used as a stand-alone copier. In the past couple of months it has been often reported that the photocopier is either out of toner or paper. The lease for this photocopier is $ 2, 323 a month plus $ 0. 04 a copy. Last year only for simply making photocopies you have paid (lost) $ 12, 936. 68. Last year the photocopier produced 376, 035 imprints on 323, 417 sheets of paper. Out of this number of copies the company produced only 6 documents with more than 10 pages; the print shop produced only 3 documents with more than 20 copies; only 2 documents were longer than 10 pages and required more than 20 copies.
Cannon also has two other models of photocopiers that will suit our needs much better. One photocopier is a Cannon Model 3418, which can produce 6, 000 pages an hour of double-sided material. The other is a Cannon Model 6723 that can produce 600 pages an hour of single-sided material. The cost of three models of 6723 copiers would be the same as the lease on the Model 4967. Daily there are large lines at the print shop, with people who want to do small copies.
Discussion It is obvious that the current photocopier cannot take care of its workload. This fact is true, because daily there are enormous lines at the print shop, and people wait for hours to get a small sheet of paper copied. When the people just stand in a line, they do not make any money for the company, so it can be easily said that the company is losing money. Anther fact about the photocopier is that it is intended to be a photocopier, which prints from networked computers.
In our case, it is a stand-alone photocopier, which does not use all of its functions. Upon interviewing it was noted that the employees complain about lining up in the print shop to have short reports copied. 1. As a solution it was suggested that it would be better to have smaller photocopiers available in departments rather than one large one in the print shop. If there will be a smaller photocopier at hand, the people will lose no time in walking five minutes to the old print shop, standing in the line for an hour and coming back.
This saved time, may be used for doing more for the companys best and thus making higher revenues. The cost of this project will equal $ 2, 323 for three machines. It is important to keep in mind that this is a one time buy, meaning you will not have to spend any additional money on it monthly, in addition as many copies as desired can be made without having to pay for them. Currently you pay $ 0. 04 for every copy.
Last year only for simply making photocopies you have paid (lost) $ 12, 936. 68. The new models that can be introduced are Cannon Model 3418 and Cannon Model 6723. The cost of the last model is the same amount that is paid for the lease, so we will even save money from purchasing these machines. We will own these machines and we will not have to pay monthly fees to pay out these machines. 2. As another solution it would be good to hire a person who will take care of the photocopier and will speed up the copying process.
The wages for this person can be calculated, taking into consideration the minimal wages paid at our company. In doing so, you will have a person to mind the printer, but you will also have and additional mouth to feed. 3. Connect the photocopier to the computer network. This solution can save time for the workers, but it will require additional expenditure from you. In order to do so new software has to downloaded to the computers. This solution does not solve the problem of the breaking down of photocopier.
Recommendation I recommend to buy the new smaller model: Cannon Model 6723, because primarily it will be cheaper ($ 2, 323 for three machines); this will reduce the lines to photocopier thus save time for the employees and make more money for the company; and also it will save yearly $ 12, 936. 68 for doing copies and not having to pay for them... Conclusion The problem is obvious and it needs a sound solution for the perfect work of the company. The solution, which will be the best for the company is purchase the Cannon Model 6723 to save money for the company. To find a best offer, a research group can be formed from workers of the print shop. The improvement of the photocopier situation will improve the working climate and will save a lump sum for the company which can be used for the development of the company of for other causes.
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