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supervision to schools. <br /> 5.0 Financial Impact <br /> This was perhaps the most difficult part of the analysis. There are two <br /> types of savings that accrue to this type of analysis. The first is the <br /> easily quantifiable out of pocket savings that can be identified such as <br /> reductions of personnel or of assets like inventory. <br /> The second type of savings usually far exceeds the above quantifiable <br /> savings. In this set are first the savings that accrue to the school through <br /> the use of more efficient or automated systems that eliminate the waste <br /> associated with the constant monitoring of transactions and second and <br /> perhaps most important, are the savings in time that allow school and <br /> department personnel to spend their time on activities that add value to <br /> the job. <br /> As indicated above, the second type of savings is very difficult to <br /> quantity. The only approach can be through some estimate of total <br /> transaction volume and an estimate of the overall efficiency improvement <br /> as a percent of the total transaction costs. We have attempted to provide <br /> an estimate based on the total school budget for operations. This is at <br /> best, a forecast of expected savings and should be treated as a forecast. <br /> 5.1 Out of Pocket Savings <br /> The first and most obvious out of pocket savings are the one time <br /> savings of about $150,000 with the elimination of the warehouse. <br /> This does not include a savings of about $15,000 per year in carrying <br /> cost reduction. <br /> Next is the savings of personnel that will be reduced according to <br /> the plan. These are as follows: <br /> Reduction of Warehouse personnel (1) <br /> Reduction of Purchasing personnel (1) <br /> Reduction of Personnel office personnel (2) <br /> • <br /> 22 <br />