Notes: September 1996

A PROPOSAL FOR DOUBLING ADVERTISING REVENUE

BACKGROUND
POSSIBILITY
MARKETING METHOD
HOW DOES ADVERTISER BENEFIT?
HOW DOES TOI BENEFIT?
SAMPLE STATEMENT.

3P Consultants B-1, Lok Bharati Complex, Marol Maroshi Road, Andheri (East) Bombay 400 059. Ph: (+91-22) 850 5800 / 850 2269 / 850 2270 Fax : (+91-22) 850 6663

3 P CONSULTANTS (with graphic showing PEOPLE, PRODUCTIVITY, PROFITABILITY)

BACKGROUND

TIMES OF INDIA earns major revenue from "Appointment (Recruitment) Advertisements."
TOI would like to further increase this revenue without increasing "Tariff". This could happen if more client companies could be attracted to advertise thro' TIMES OF INDIA. This, however is very difficult, considering that TOI's tariff is already 25% - 50% more than major newspapers.

POSSIBILITY

One way TIMES OF INDIA could attract more clients to advertise is by offering them a "Value Added Service, without any additional cost to the client."
3P Consultants could help TOI offer to its clients such a "Value Added service."

MARKETING METHOD

Under this scheme,

Advt will carry the (advertising) client's name, but not his address.
The Advertiser will direct the applicants (respondents) to send their applications (biodatas) to TIMES OF INDIA (Post Box No. )
TOI will, on a daily basis, arrange to deliver the response to 3P Consultants.
3P Consultants will enter the highlights of each applicant into computer.
At the end of the pre-determined period (say 15 days from the date of the advertisement), 3P Consultant will handover to TIMES OF INDIA, a floppy containing the highlights of all the applicants (along with a box-file containing all original applications, arranged serially and numbered).
Using this floppy, TOI could print-out a one-line "Biodata Highlight Statement" (as per sample enclosed) and forward it to the Advertiser along with the box-file containing the original applications.
If desired, TIMES OF INDIA could also send the floppy itself to the advertiser.

HOW DOES ADVERTISER BENEFITS ?

Advertiser saves the clerical man-hours of

opening the envelopes
sorting according to each position advertised and filing serially in different box-files (as per positions advertised).

By looking at the computer print-out, the Advertiser gets a "Bird's Eye View" of all the applicant-profiles (in descending order of age/ experience).
Such a systematic, neat and logical arrangement of the profiles would enable the Advertiser to quickly eliminate (without going through each & every application) those candidates who do NOT meet the "Advertised criteria". Usually 75% of the applications fall in this category.
This would mean that the advertiser will need to look at only 25% of the applications to decide "whom" to call for interview.
The statement could carry additional blank columns in which the Advertise could make entries such as

Whether called for interview / date of interview.
Whether appeared for interview and what was the outcome.

(Continued Advertiser Benefits & HOW DOES TIMES OF INDIA Benefit?)

Whether an appointment - letter issued.
Tentative date of joining
Salary offered. etc. etc.
We could also provide a "software" feature in the floppy, whereby the advertiser could "search" for a specific candidate or a specific information, at any future date, in matter of "seconds"! This means an Advertiser has created for himself, at no extra-cost, a comprehensive "Data-Bank" of all applicants against all advertisements.

How does TIMES OF INDIA Benefit?

By offering such unprecedented & unique value-added service to the advertiser, "at no extra-cost", TIMES OF INDIA could expect its Appointment-related Advt. Revenue to DOUBLE within a span of 6 months.

(Cover Letter - Dated September 23, 1996)

MR. BHASKER DAS Vice President THE TIMES OF INDIA Dr. D.N. Road, BOMBAY - 400 001

September 23, 1996

Dear Mr. Das,

Value Added Service

We discussed this during my visit to your office on August 28th.

During our telecom last week, you mentioned that you would like to have further discussions on our proposal at a mutually convenient time. Please let me know when.

In the meantime, in the enclosed pages, I have tried to provide answers to the apprehension raised by you during our last meeting.

With kind regards,

H.C. PAREKH Principal Consultant

(Contact info repeated at the bottom)

(POINTS FOR DISCUSSION)

3P CONSULTANTS (with graphic showing PEOPLE, PRODUCTIVITY, PROFITABILITY)

TIMES OF INDIA PROJECT POINTS FOR DISCUSSION

Design of Computer Print-out
Should we also supply floppy? If yes, what kind of "search software" should it contain? What will it enable the advertiser to do?

Search by

Education Qualification
Age (years)
Exp. (years)
Name of Current-employer
Current location
Should "search-software" permit /enable the advertiser to print-out "files" created by each "query"?
Should "search-software" enable the advertiser to "add up" data contained in, say 10/20 / any no. of floppies?
In such an event, would software also enable the advertiser to know when he shoots a query to the consolidated/clubbed database, as to "which" candidate had applied against "Advt. ?"
Should "search-software" even enable an advertiser to carry-out search the same way 3P is doing? i.e.

By Industry
By Function
By Salary
By Location
By Age
By Exp.
By Key-words

(Contact info repeated at the bottom)

(Implications and 3P ADVANTAGE)

3P CONSULTANTS (with graphic showing PEOPLE, PRODUCTIVITY, PROFITABILITY)

This amounts to literally giving away our new QUERY-MODULE (but not the source-code), to each advertiser "free-of-cost"! - and again and again with each advertisement handled!

What would this imply?

It would, of course, enable each advertiser to build-up his own computerised Databank - against all the advertisements released by him - in a manner identical to the way we are building our Data bank today.

It will also enable each advertiser to carry-out "Search" (of course, of his own database) in a manner identical to ours, by being able to use identical Search-software.

This will be a tremendous advantage that the advertiser stands to gain over a period of time - WITHOUT having to spend anything extra!

For TOI/3P Consortium, this would be a VERY POWERFUL USP (Unique Selling Point) for "Looking-up" a large no. of advertisers to the "VAS" (Value-Added Service).

Obviously this USP will work very well with companies who are large - advertise frequently

WHAT IS 3P ADVANTAGE ?

By hooking-up a large no. of big/frequent advertisers, 3P's own database would swell very fast. Our data-base could, conceivably become 100 or 1000 times bigger than the database of even the biggest and the most frequent advertiser such as L&T.

This would mean that, over a period of 2/3 years, even companies (such as L&T) who, under our scheme, have managed to build-up their own substantial database, would come to us for their requirement when they know that our database is 1000 times bigger than theirs!

(Contact info repeated at the bottom)

(Database Freshness and Maintenance)

3P CONSULTANTS (with graphic showing PEOPLE, PRODUCTIVITY, PROFITABILITY)

...requirement when they know that our database is 1000 times bigger than theirs!

Of course, this advantage would occur - and continue to occur - if, and only if, we succeed/manage to keep this database FRESH/UP-TO-DATE!

Even if we have a million executives on our database, no one would bother to come to us, if the data is 5 years old in most of the cases!

So,

building-up a huge database
and
keeping it up-to-date,

has to go hand-in-hand.

If we cannot keep it fresh, we may as well not bother to build it up in the first place!

In such a case, we have given-away an advantage

to Times of India
to the Advertiser.

Without getting any benefit in return!!

Hence the entire proposal to TOI - and thru TOI to advertiser - hinges on our ability to evolve and implement, a system/mechanism to keep the bio-datas fresh, all the time.

In our system, we have provided for sending-out to each executive on his birth-day (that means once a year) a greeting letter urging him to update his bio-data, by sending an EDS (or a truncated / modified EDS).

But these are executives, who know they have sent us their biodata

either against an Advt
or on their own.

So they will not be Surprised to receive a letter from us.

(Contact info repeated at the bottom)

(EDS Follow-up)

3P CONSULTANTS (with graphic showing PEOPLE, PRODUCTIVITY, PROFITABILITY)

But how do we approach those who have responded to an Advt. say, for VOLTAS? We cannot - and must not - reveal to them how we got hold of their bio-data.

ANSWER

Within one month of creating "data-base" of a respondent (to any TOI-VAS advt.), we should send-out a printed Circular mailer-letter to him Suggesting that he register with us. Obviously we will keep Silent on how we got his name/address.

If he/she returns the EDS duly filled-in, we have no problem there after, since we will be alloting a PEN number.

What happens if he/she does not return the EDS ? Then how can we send a reminder next year on birth-day ? He may wonder how we got hold of his birth-date!

But then there are dozens of forms that a person has to fill-in where he is required to mention his birth date -

e.g.

Insurance Policy
Membership (Dinners Clubs/Citi Bank)
~~Sterling Resort/Clubs.~~
Ration Card
Passport
Bank Accounts etc. etc.

(Contact info repeated at the bottom)

(Data Management & 3P's Disadvantage)

3P CONSULTANTS (with graphic showing PEOPLE, PRODUCTIVITY, PROFITABILITY)

We could also decide to send an EDS only if a person, in the first place, sends his biodata, against a mailer.

And of course a mailer can be sent once every year, without talking of his birth-date!

And those who have once sent us a bio-data and/or EDS, it would be a birth day greeting.

So I do not see any unsurmountable problem, as far as hiding our "source" of information is concerned.

But what we will really need to be concerned about is

managing data-entry (data-base creation) of say 1000 application every week
sending-out "Mailers" to these 1000 persons every week.

We may have to get this done

on our premises
using our facilities

but employeeing operators on "per piece" basis.

WHAT COULD BE 3P'S DISADVANTAGE ?

(if we give away on a floppy our comprehensive QUERY SOFTWARE to each advertiser ?)

This (software) is not of much use to an infrequent advertiser.
It is of considerable benefit to a large company which also advertises frequently. In fact this (benefit) is our USP.
The danger/disadvantage arises if

(Contact info repeated at the bottom)

(Threats and Protection Measures)

3P CONSULTANTS (with graphic showing PEOPLE, PRODUCTIVITY, PROFITABILITY)

one of the advertiser plans to get into recruitment business himself
the software is passed on to one (or more) of the existing recruitment companies.
Times of India themselves plan to get into Recruitment-business. They could make copies of all floppies meant for the advertisers and build-up a database themselves + they have search-software!

Can we protect ourselves against these dangers (of, ourselves creating dozens of competitors)?

Can we do, one (or more) of the following ?

Floppy cannot be copied, either on another floppy or on a hard-disk.
"Data" as well as "Query-Software" gets automatically wiped-out, one year from the date of advertisement (with such a warning incorporated in floppy as well as TOI's special offer-letter for the VAS (Value added services).
Print-outs cannot be taken from the floppy.
Each advertiser (and also each advertisement data) being given a secret password/codeword, so that no one else can access (see it on screen) it even if he manages to steal the floppy.

Of course TOI will know every such password, since 3P is completely in the background. Entire success of this scheme depends upon the advertiser knowing NOTHING about the role of 3P! Even Slightest hint of 3P's involvement will drive away all the advertisers.

THREAT OF LEAKAGE TO COMPETITORS.

I presume that our "Query-Software", by itself, is not of much

(Contact info repeated at the bottom)

(Protecting Against Internal Threats and Sub-Contracting)

3P CONSULTANTS (with graphic showing PEOPLE, PRODUCTIVITY, PROFITABILITY)

...use to any competitor. Not only he must have a large database on which he can use the Query-Software, but I suppose, his data-base has tobe "Structured" according to our Data Capture Module. It is highly unlikely that his database is "organised" in absolutely identical manner as our database. If this be true, his stealing or acquiring only our "Querry-Software" may be of no help/advantage to him!

If the foregoing is true, than our only REAL threat is from TOI themselves getting into recruitment business because, they would have both

"Candidate-data" which is structured as per our Data-Capture module
"Querry-Software"

And even if TOI management may have no desire to get into "recruitment" by way of diversification, there is every possibility that one or more of its employees may quit carrying with them, both the data and the Querry-Software!

QUESTION :

How do we protect ourselves against such an eventuality ?

If TOI is to Sub-contract this "Value-addition" job to 3P Consultants, could it make at least some of the advertisers to "Shy-away" from making use of this Services ? Would they look-upon TOI/3P Consortium as building-up a "Executive Database" at their expense ? - even if this is not to be used for Recruitment, but, for example, to be used as a Database for DIRECT MAILING LIST for any marketing organisation ?

There is a genuine possibility of being "perceived" so. This has to be avoided by

entering into "Sub-contract" agreement with a Separate company floated by 3P Consultant, having innocuous nomenclature.

(Contact info repeated at the bottom)

(Advertisement Response Analysis Table)

'A TYPICAL ADVERTISEMENT RESPONSE ANALYSIS'

Client	Media	Size of Advt. CC (a)	Rate Rs./cc (b)	Cost of Advt. (Rs.) (a x b)	No. of Applications Received Total	No. of application per each Rs. 1 Lakh
Adani	West TOI	$10\text{x}208 = 2080$	$1780$	$3,70,240$	\multirow{3}{*}{$1148$}	\multirow{3}{*}{$124$}
	North Hindustan Times	$10\text{x}208 = 2080$	$1400$	$2,91,200$
	South Hindu	$10\text{x}208 = 2080$	$1275$	$2,65,200$
				$9,26,640$
L & T	TOI (Bombay & Pune)	$10\text{x}232 = 2320$	$1510$	$3,50,320$	\multirow{2}{*}{$862$}	\multirow{2}{*}{$133$}
	Hindu	$10\text{x}232 = 2320$	$1275$	$2,95,800$
				$6,46,120$

(Cumulative Income vs. Cumulative Expense Graph)

CUMU. INCOME Vs. CUMU. EXPENSE DURING 15 MONTH AGREEMENT PERIOD IF MONTHLY VOLUMES PROCESSED ARE AS SHOWN ON PAGE 10 OF AGREEMENT. CALCULATIONS SHOWN ON NEXT PAGE

GRAPH (A)

ASSUMPTIONS

Volumes each month as per page 10
"Rates" as per alt $\text{#1}$.

(Graph shows Cumulative Total Income and Cumulative Total (Fixed + Variable) Expenses over 15 months and Monthly Volume Processed. $Y$-axis is Rs. (Lakhs).)

Total Income (Solid Line): Reaches approx. 33.75 Lakhs at 35K volume.
Total (Fixed + Var.) Expenses (Dashed Line): Reaches approx. 19.50 Lakhs at 35K volume.
Shift lines are indicated for 1 shift, 2 shift, and 3 shift.

BREAK-EVEN ANALYSIS

Month No.	Month	No. of applications to be Processed	Variable Service Fee @ Rs. 15/appln	Variable Service Fee as per Slab/Rates (A)	Credit Note (Difference)	Fixed Charges per Month (B)	Total Income Rs.(000) (A) + (B)	Expenses/month Fixed	Expenses/month Variable	Expenses/month Total	Net Profit for the Month	Cumulative Net Profit	No. of Shift
1	NOV	-	-	-	-	$40,000$	$40$	$0$	$0$	$0$	$+40$	$+40$	Nil
2	DEC	-	-	-	-	$40$	$80$	$0$	$0$	$0$	$+40$	$+80$
3	J-97	-	-	-	-	$40$	$120$	$0$	$0$	$0$	$-45$	$-35$
4	F	$3000$	$45,000$	$45,000$	-	$85$	$120$	$50$	$35$	$85$	-	$-35$
5	M	$5000$	$75,000$	$75,000$	-	$115$	$320$				$+30$	$-05$	ONE
6	A	$7000$	$105,000$	$103,000$	$2,000$	$143$	$463$				$+58$	$+53$
7	M	$10,000$	$150,000$	$145,000$	$5,000$	$185$	$648$				$+100$	$+153$
8	J	$12,000$	$180,000$	$171,000$	$9,000$	$211$	$859$				$+126$	$+279$
9	J	$15,000$	$225,000$	$210,000$	$15,000$	$250$	$1109$				$+80$	$+359$
10	A	$20,000$	$300,000$	$270,000$	$30,000$	$310$	$1419$	$100$	$70$	$170$	$+140$	$+499$	TWO
11	S	$22,000$	$330,000$	$292,000$	$38,000$	$332$	$1751$				$+162$	$+661$
12	O	$25,000$	$375,000$	$325,000$	$50,000$	$365$	$2116$				$+195$	$+856$
13	N	$27,000$	$405,000$	$345,000$	$60,000$	$385$	$2501$				$+130$	$+986$
14	Dec	$30,000$	$450,000$	$375,000$	$75,000$	$415$	$2916$	$150$	$105$	$255$	$+160$	$+1146$
15	Jan-98	$35,000$	$525,000$	$420,000$	$105,000$	$460$	$3376$				$+205$	$+1351$
TOTAL	$211,000$	$3,165,000$	$2,775,000$	$3,89,000$	$600,000$	$3,375,000$		$19,55,000$	$13,51$

ALT #1 $\to$ Volume processed as per pg # 10

PER SHIFT/PER MONTH

	Fixed Cost		Variable Cost
Item	Item	Amt.	Item	Amt.
Manpower	Peon (1)	$1200$	DE op. (8)	$20,000$
	Clerk (2)	$4000$
	Supervisor (1)	$5000$
	Manager (1)	$10000$
	Security (1)	$3500$
Sub total		$23,700$		$20,000$
	Floppy		$550$
	Ribbon		$3000$
Power	Light Power	$1000$
	A/c Power	$3000$	Computer Power	$2500$
			A/c Power	$6000$
Computer Rental	$10 \text{ m/c}$	$9000$
Maint. Contract	$11 \text{ m/c}$	$5000$
Snacks (Tea)		$2500$		$3000$
Software Maint.		$5000$		-
		$49,200$		$35,050$

Note: The total fixed cost appears to be calculated as $23,700 + 1000 + 3000 + 9000 + 5000 + 2500 + 5000 = 49,200$. The total variable cost appears to be $20,000 + 550 + 3000 + 2500 + 6000 + 3000 = 35,050$.

(Total Fees Graph - ALT #1)

(Graph shows the Total (Fixed + Variable) Fees (ALT #1) against Monthly Volume Processed.)

Y-axis: Rs (000) - Monthly Variable Service Fee
X-axis: Monthly Volume Processed $\to$
Point (0, 40K): Monthly Fixed Committment Charge
The line representing TOTAL (FIXED + VARIABLE) FEES (ALT #1) shows a linear increase starting at 40K (for 0 volume) and reaching 500K at 40K volume.
Key points plotted: (5K, 115K), (10K, 185K), (15K, 250K), (20K, 310K), (25K, 365K), (30K, 415K), (35K, 460K), (40K, 500K).

(Total Earnings Vs. Total Cost Graph)

TOTAL EARNINGS Vs. TOTAL COST AT DIFFERENT MONTHLY VOLUMES PROCESSED

Y-axis: Rs. (1000)
X-axis: MONTHLY VOLUME PROCESSED (5K to 40K)
TOTAL EARNINGS (ALT # A) (Red Line): Starts at 40K (0 Volume) and reaches 500K at 40K Volume.

Points plotted: 40K, 115K, 185K, 250K, 310K, 365K, 415K, 460K, 500K.

Total Cost (Steps):

Fixed Cost / 1 shift: 40K (from 0 to approx. 10K volume)
Total Cost 1 shift: Starts at 40K, increases in steps, e.g., to 85K at 5K volume, 130K at 10K volume.
Fixed Cost / 2 shift: 100K (from approx. 10K to 20K volume)
Total Cost 2 shift: Starts at 100K, increases in steps, e.g., to 170K at 15K volume, 235K at 20K volume.
FIXED COST / 3 shift: 150K (from approx. 20K volume)

TOTAL EARNING (ALT # B) (Green Line, Curved): Shows an alternative, lower earning line.

Points plotted: 205K, 260K, 285K, 310K.

Loss Areas are indicated (shaded areas where total cost exceeds total earnings).

(Alternative A Slab Rate)

ALT # A

Slab	Rate	Variable	Fixed	Total
0-5000	15	75,000	$+40,000$	$= 115,000$
5001-10000	14	145,000	$+40$	$= 185$
10001-15000	13	210,000	$+40$	$= 250$
15001-20000	12	270,000	$+40$	$= 310$
20001-25000	11	325,000	$+40$	$= 365$
25001-30000	10	375,000	$+40,000$	$= 415,000$
30001-35000	9	420,000	$+40$	$= 460$
$\ge 35000-40000$	8	460,000	$+40$	$= 500$
Spread $\to 7$

$*Variable$ column shows the cumulative variable fee up to the top of the slab.*

This is the "BEST" alternative and we should try to get TOI to agree to this.

(Rate Alternative B)

ALT # B

Slab (Applications in Thousands)	Rate (Rs.)	Variable (Rs. '000)	Fixed (Rs. '000)	Total (Rs. '000)
0-5	15	75,000	$+40,000$	$= 115,000$
5-10	13	140,000	$+40$	$= 180$
10-15	11	195,000	$+40$	$= 235$
15-20	9	240,000	$+40$	$= 280$
20-25	7	275,000	$+40$	$= 315$
25-30	5	300,000	$+40$	$= 340$
30-35	3	315,000	$+40$	$= 355$
35-40	1	320,000	$+40$	$= 360$

Spread $\to$ 14 !!

These rates would appear ridiculous!

We should not go below Rs. 5

(Rate Alternative C)

ALT # C

Slab (Applications in Thousands)	Rate (Rs.)	Variable (Rs. '000)	Fixed (Rs. '000)	Total (Rs. '000)
0-5	15	75,000	$+40,000$	$= 115,000$
5-10	10	125,000	$+40$	$= 165,000$
10-15	10	175,000	$+40$	$= 215,000$
15-20	7	210,000	$+40$	$= 250,000$
20-25	7	245,000	$+40$	$= 285,000$
25-30	6	275,000	$+40$	$= 315,000$
30-35	6	305,000	$+40$	$= 345,000$
35-40	5	330,000	$+40$	$= 370,000$

Spread $\to$ 10

Even this can be made Rs 6 [Note: 'Rs 6' is crossed out]

Although, total earnings-wise, this alternative is quite close to Alt #2 [Note: Likely a reference to Alt A, or a missing Alt 2], this alternative seems more "balanced" (Sober!) and will require less calculations since "slabs" are bigger.

(Rate Alternative D - Final/Rock-Bottom)

ALT # D

Slab (Applications in Thousands)	Rate (Rs.)	Variable (Rs. '000)	Fixed (Rs. '000)	Total (Rs. '000)
0-5	10	50,000	$+40,000$	$= 90,000$
5-10	9	95,000	$+40$	$= 135,000$
10-15	8	130,000	$+40$	$= 170,000$
15-20	7	165,000	$+40$	$= 205,000$
20-25	6	195,000	$+40$	$= 235,000$
25-30	5	220,000	$+40$	$= 260,000$
30-35	5	245,000	$+40$	$= 285,000$
35-40	5	270,000	$+40$	$= 310,000$

Spread $\to$ 5

If TOI feel very strongly that our rates in the beginning (lowest slabs) are too high in other Alternatives, then we could adopt this alternative as a kind of "final / rock-bottom position".

At the lowest monthly volume of 5000 applications, we will just recover our total cost (which is $\approx$ Rs. 85,000/- for 1 shift). We should not budge from our demand for FIXED MONTHLY COMMITTMENT Charges @ Rs. 40,000/-.

(Output Estimate & Assumptions)

OUTPUT ESTIMATE ASSUMPTIONS HANDPOWER COST-ESTIMATE

Volume/month →	12,500 applications	25,000 applications
Assumptions $\downarrow$
No. of Shift	$\text{1st}$	$\text{1st} + \text{2nd}$
Shift Timing	$4:30 \text{ pm} \to 12 \text{ midnight}$	$12 \text{ midnight} \to 7:30 \text{ am}$
Total Hours/shift	$7 \frac{1}{2}$	$7 \frac{1}{2}$
Lunch Break	$\frac{1}{2}$	$\frac{1}{2}$
Net Working Hours/Shift	$7$	$7$
Total Hours/day	$7$	$\approx 14$
Total Hours/month (25 days/month)	$175$	$350$
No. of DE operators	$8$	$8$
Total Op-Hours/month	$1400$	$2800$
No. of entries/Op./Hr (63 entries in 7 hours)	$\approx 9$	$\approx 8$
Total entries/month	$\frac{144,000}{12,600}$	$\frac{288,000}{25,200}$

Note: The number of applications processed per month seems to be 12,600 for 1 shift and 25,200 for 2 shifts.

(Manpower Cost Estimate)

MANPOWER COST-ESTIMATE / SHIFT/MONTH

Type of Manpower	No. of Persons Required	Monthly Salary Rs	Total wage Per/Month for 1 shift
DE Operator	8	2,500	20,000
Peon	1	1,200	1,200
Clerk	2	2,000	4,000
Supervisor	1	5,000	5,000
Manager	1	10,000	10,000
Security Guard	1	3,500	3,500
TOTAL	14		43,700

(Material Cost)

MATERIAL COST / SHIFT/MONTH

Item	Rate unit. Rs	Units consumed per shift/month	Total cost Rs	Assumption
Floppy	55	10	550	1200 records per floppy
Printing Ribbon	300	10	3,000	1200 records per ribbon
Continuous Printing Stationery	$\leftarrow$ To be supplied by TOI $\rightarrow$
Box Files	$\leftarrow$	$\rightarrow$
			TOTAL

Note: The total cost is not summed but appears to be $550 + 3000 = 3,550$. This value is later referenced as 1,250 in the summary, indicating $3,550$ may be the combined printing/floppy cost for a higher volume or that the Material Cost is actually meant to be 1,250 as per the next file.

(Additional Overhead Cost)

ADDITIONAL OVERHEAD COST / SHIFT / MONTH

Item	Rate Unit Rs	No. of Units consumed / shift / month	Total Cost / Shift (Rs.)	Assumption
Power for Lighting & running Computers	$6 / \text{kWh}$	$17$	$102 \times 25 = 2,550$	8 computer $\times 300 = 2400 \text{ watts/hr} \times 7 = 16800 \text{ watts/day}$ i.e. 17 units.
Power for Air Conditions (3 A/c @ 1.5 T)	$6 / \text{kWh}$	$60$	$360 \times 25 = 9,000$
Computer Rental			9,000	Existing: $5500 \times 1 = 5500$, $2200 \times 4 = 8800$. New (Node): $5000 \times 1 = 5000$. $27,100 / \text{ per month}$ $\therefore \text{Per Shift} = 9000 / \text{ per shift per month}$
Contract Maintenance Cost per Shift/month (inclu. spares)			5,000
Snacks/Tea for 14 persons		$17.5 \text{ (Total daily cost)}$	$210 \times 25 = 5,250$	Tea $= 2.5 \times 2 \times 5 = 25 \text{ Rs}$, Snacks $= 2.0 \times 1 \times 10 = 20 \text{ Rs}$, Total Daily Cost $\approx \text{Rs } 210$
			TOTAL	30,800

(Total Cost Summary)

TOTAL COST SUMMARY

		Per shift per month
1.	Manpower Cost	43,700
2.	Material Cost	1,250
3.	Overhead Cost	30,800
	TOTAL	75,750
	Add Contingencies @ 10%	7,575
	Grand Total per shift / month	83,325