Cost of Inefficiency Calculator  
  We first published an online version of our Cost of Inefficiency Calculator in 2009, complementing the original 2006 paper version. Since then, countless business owners and individuals have used it to uncover the true cost to their business of 'doing business badly' - their Cost of Inefficiency.
Back then, we'd explain it like this: 
  "When someone buys your goods or services they pay for the goods or services themselves, including the production costs, licensing costs or fees, labour costs, inspection costs, etc.

They expect to pay for these things, just as they expect you to make a profit.
What they don't expect to pay for is your inefficiency: the cost of rework, poor purchasing practices, bad scheduling, high team turnover, inventory management issues, unnecessary manual tasks that should be automated, down-time due to equipment failure, insufficient training, and so on. In short, the cost of not having good systems.

Cost of Inefficiency is based on all the above and it is paid straight out of your profit or is charged to your customers.

It is
not, and should never be interpreted as, part of your 'cost of doing business.'
  Understanding your Cost of Inefficiency is the first step to minimising it.

You're taking that first step today.  Good move.
Copyright© 2007 - 2021 Brain in a Box Pty Ltd  All rights reserved
  Systems Questionnaire        
  See how your business stands up in terms of systems.
Provide a score for each statement listed below.
  Choose a score from 1 to 10
Zero (0) is not a score
    We have clearly defined systems for all core functions of our business  
    Our systems culture helps builds our team, not 'blame' our team  
    Everyone in the team is able to access our systems  
    I believe our systems cater well for all learning styles  
    Our systems are followed consistently by all levels of authority in our business  
    We rely on the expertise captured in our systems, not just a few key people's brains  
    We welcome feedback on our systems and encourage our team to search for improvements  
    The effectiveness of our systems is seen as a critical contributing factor to our success  
    Typically, problems are attributed to faults in our systems rather than our people  
    There’s no significant gap between what our systems say we do and what actually happens  
Copyright© 2007 - 2021 Brain in a Box Pty Ltd  All rights reserved
  Cost of Inefficiency Calculator      
  Assess your inefficiency across the three how much time or money is lost through inefficiency by you, your department or your business.
There are 10 options in each category.
1. Select an item from one of the dropdowns - something that you know costs money, either directly or in
    hours wasted through inefficiency.
2. Now decide whether to assess the inefficiency by
time (hours per week) or direct cost.
3. For hours, enter your assessment of the hours spent on this item in an average week.
4. For direct cost, enter your assessment of the weekly cost for this item.

Go with your gut feel, don't try to evaluate or calculate the 'correct' assessment.
Choose your top three inefficiences in each category
Hours per Week
Direct Cost
  The True Value of One Hour          
  The true cost to your business of every hour is not the sum of the wages or salaries payable for that hour.
Rather it is the
value that should be generated in that hour plus the direct costs of the hour.
So, if the subject of this report should generate $500 dollars per hour, and their direct costs are $250 per hour, then their
value is $750 per hour.

Note: If you're calculating the Cost of Inefficiency for a team or department, sum the true value you calculated for each team member.
Consider having each team member complete their own individual Cost of Inefficiency and then comparing their reports with the whole team report.
The comparison can bring some interesting viewpoints to the surface. 
  Select the True Value of one hour by using the slider below.          
Copyright© 2007 - 2021 Brain in a Box Pty Ltd  All rights reserved
  Cost of Inefficiency Report  
This report is indicative of the inefficiency in your business based on your input. 
      Key Danger Zone
Serious action required
& consider seeking help
At Risk
Some positives but real
effort needed
Fair to Good
Identify the positives &
 share them further
Good to Excellent
Reinforce the good
The importance of clearly defined systems
A systems culture of support, not blame
Providing access to systems
Catering to all learning styles
Importance of systems to all levels of authority
Expertise captured in systems, not key people
Encourage feedback to enrich systems
Systems contribution to success
Focus on systems to analyse problems
Compliance with systems - saying then doing
    The Role of Systems in Your Business    
    This calculator does not provide a comprehensive analysis of your business and the role of systems in your success. Rather we seek to provide basic feedback based on your own assessment of a number of factors which we believe describe good systems. Our intention is solely to alert you to areas where you could potentially improve your business.    
    Looking at your responses to the Questionnaire, we suggest that the following cultural changes should benefit your business.

Essentially, you should aim to achieve:
    Your Cost of Inefficiency    
    Your Cost of Inefficiency has been calculated using your estimates. If you believe the Cost of Inefficiency to be too high, check your figures. Avoid changing your entries just to make your report look good. Our experience shows that 'gut feel' responses are likely to be more accurate than responses which have been massaged to fit a desired outcome.      
    The items you selected in each category are listed in the table below, together with the annual cost for each item.      
    The Numbers Behind Your Business Inefficiency      
Copyright© 2007 - 2021 Brain in a Box Pty Ltd  All rights reserved
Cost Cost
Quality Quality
Time Time