What kind of savings can a company expect from a Jackson Gainsharing Plan?
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Follow the instructions on this sheet to calculate the savings (assuming a 10% increase in productivity), typically realized by Jackson Gainsharing Plan users. This is a calculation worksheet only and none of the information is saved. This information will not be used by W.M. Jackson & Co., Inc. for any purpose whatsoever. It is simply an exercise to illustrate potential savings. After you have filled in the fields, click on the calculate button. When it has calculated the savings and redisplayed your information, you may print this form out or enter new data for new calculations. Simply click the clear button when finished.
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Example |
| First estimate the value of sales for your company: |
$(A) |
$10,000,000 |
| Now, estimate and accumulate the total labor costs for your company: |
| Direct Labor: |
$ |
$1,450,000 |
| Indirect Labor: |
$ |
$500,000 |
| Vacation Pay: |
$ |
$200,000 |
| Holiday Pay: |
$ |
$100,000 |
| Insurance Benefits: |
$ |
$400,000 |
| Pension Plan: |
$ |
$300,000 |
| Other Benefits: |
$ |
$50,000 |
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| Total: |
$(B) |
$3,000,000 |
| Divide Item (B) by Item (A) to get a percentage: |
(C) |
30% |
| A 10% increase in productivity would be 10% of Item (C): |
(D) |
3% |
| The savings or increased profits for our company would be Item (D) multiplied by item (A): |
$ |
$300,000 |