Robot time equivalent (RTE) expresses the financial value of saved human work. Each process involves financial amount equivalent to human work. This value represents money saved during every completed process run.
For a successful implementation of this methodology, it is necessary to define and compute values: task duration, cost of work and average saving.
How many hours in average does the employee monthly spend on processing the task?
Precisely - the number of hours can be calculated precisely based on the employee`s performance, e.g. employee measures in real-time minutes/hours spent on processing the task with the conditions as below:
Estimation - the number of hours can be calculated as time expected to be spent on the tasks processing by employee (qualified estimation).
What is the direct cost of the employee`s work per hour?
Average saving per month = number of hours monthly multiplied by the total cost per hour.
The employee's task is to check new customer registrations in the external registration system every hour and copy them to the business team system. The employee spends 10 minutes every hour by logging into an external system, exporting data and uploading it to a business team system.
We decided to replace his work with a robotic process.
RTE represents the financial savings that every single run of the robotic process brings, that is 10 minutes of employee work-related costs. In our case, RTE = 3 USD.
RTE is the fundamental value from which complex savings can be obtained. In our case, we can calculate:
During working hours, the employee performs this activity 9 times in 5 days a week (RTE = 3 USD).