The Dark Side of Document Imaging: ‘The Hidden Cost of Capture’

The Dark Side of The Dark Side of Document Imaging:Document Imaging:

‘‘The Hidden Cost of The Hidden Cost of Capture’Capture’

Jerry Van Loozen, CDIA23 years experience

Filing Systems

Record Centers

Service Bureaus

Document Imaging

Records Management

Current President - Atlanta Chapter of ARMA

The Walter H. Hopkins Companywww.BusinessOrganizationSolutions.com

Serving Georgia and Alabama for 37 yearsServing the Nation through Systec www.systcgroup.com

- Spacesaver High Density Storage- Smead Custom Filing Solutions- Active Workroom Furniture- Filetrail technology for barcode and RFID tracking- Smeadlink software for document imaging- Captiva solutions for document and data capture

ISO 15489 RIM Best Practice Standard

Your Experience in Document Imaging

• Have not tried yet

• Just getting started

• One year experience

• I figured it out

To Store vs. Scan

• Off-Site Storage

.25/month/box

+ retrievals• 12 x 15 x 10 archive box• $3.00 per year

• $150.00 - 225.00/box• includes prep, scan,

index, write to cd and reassemble folder

• + cost for software investment, maintenance & support

Quick Estimate on Cost to Scan

• Add up number of file inches• Get average number of folders per inch to get estimated

number of folders• Multiple number of inches by pages per inch 150 to 225

based on folder, paperclip and fastener thickness• Take total number of folders and calculate cost to index

based on .03 to .20 each – Cost varies based on number of fields, characters per field and process to get data

• Take number of documents and calculate by .08 to .10 per page – the cost goes down to .05 to .07 with quantities over 100k

• Add .25 per filing inch for shipping and handling of paper

The Cost of Capture

• Collect Documents

• Prep Documents

• Indexing

• Filing

High Labor Costs

• In most applications, capture is a small part of the initial capital investment….

• But by far the largest ongoing expense

Ongoing Costs

Initial CapitalInvestment

0 20 40 60 80 100

Ongoing Costs

Initial CapitalInvestment

Front-EndFront-EndCaptureCapture

Front-EndFront-EndCaptureCapture

Back-EndBack-EndApplicationApplication

Back-EndBack-EndApplicationApplication

Ways to reduce cost

• Distributed vs centralized scanning

• Workflow – Batch Processing

• Automation

Centralized Scanning at a central site on a single LAN

Decentralized Scanning with the internet

• Same process but work can be done anywhere

• Internet provides reliable inexpensive network infrastructure

FilingServer

InternetServer

InternetInternet

Scan

Recognition

Index/Validation QC

Cost Comparison

• Centralized scanning• Assume 10 sites scanning 100 pages per day

– 10 packages per day @ $10 each = $100 per day– Total shipping cost: $25,000 per year

• Additional operator cost at central site– 1000 documents per day– 2 hours of prep/scan @ $10 per hour = $20 per day– Total scan/prep costs = $5000

• Total cost = $30,000

Cost Comparison

• Distributed scanning– 10 scanners + software at remote sites @ $2,500

each– Total hardware/software cost = $25,000

• Internet access cost– $20 per month per site– Total access cost = $2,400

• Total cost = $27,400 (first year)$2,400 (subsequent years)

Cost Comparison

• Total savings:– First year: $2,600– Second year: $27,600

• Non-monetary savings– Faster access to documents– Better security– Local personnel know the documents better

Capture Costs - Operator

• Assumptions:– Fully loaded operator cost is $23,000 per year

• $11.50 per hour• $.19 per minute

– 250 working days per year

• In document and data capture, savings are measured in seconds, multiplied by thousands of documents

WorkFlow

• Batch processing increases productivity• With a 40 ppm scanner:

– Manual scanning = 10 ppm– Batch scanning = 30 ppm

• At 1,000 pages per day:– Manual scanning = 100 minutes– Batch scanning = 33 minutes

• Cost savings:– 67 minutes x $.19 per minute = $12.73 per

operator per day• Total savings of $3,182 per year!

Automation

• Heads up Data Entry

• OCR & Barcodes

• Data integration

• COLD

• Esignatures

Indexing Cost

• Assumptions:– 5 fields per document, 12 characters per field– Keying rate of 7,000 characters per hour– 6.2 seconds per field

Field #1 – Faster Keying

• Properly designed ‘Heads Up Data Entry’ module can speed keying rate– Keying rate improves to 10,000 characters per hour– Keying rate is now 4.3 seconds per field

• At 1,000 pages per day:– Total time = 71 minutes– 32 minutes saved for field #1

• Cost savings:– 32 minutes x $.19 per minute = $6.08 per day

• Total savings for field #1 of $1,520 per year!

Field #2 – Zonal OCR

• If OCR is performed on one index field:– Field only needs to be checked, not keyed– Time to check field = 2 seconds

• At 1,000 pages per day:– Total time = 33 minutes– 70 minutes saved for field #2

• Cost savings:– 70 minutes x $.19 per minute = $13.30 per day

• Total savings for field #2 of $3,325 per year!

Field #3 - Barcodes

• If bar code is performed on one index field:– Bar codes are 99% accurate

• At 1000 pages per day:– 1% error rate = 10 pages – Total time = 2 minutes to check/correct 10 pages– 101 minutes saved for field #3

• Cost savings:– 101 minutes x $.19 minute = $19.19 per day

• Total savings for field #3 of $4,798 per year!

Field #4 & #5 - Data Integration• Match unique data in document to data in host

database and merge all relevant fields to document index table

• Eliminate keying cost and potential for error• At 1,000 pages per day

– Total time is 206 minutes per day

• Cost savings - 206 minutes at $.19 per minute = $39.14 per day

• Total savings of field # 4 & # 5 of $9,785.00

Cost Savings Summary

Process

Batch scanningFaster keying (field #1)OCR indexing (field #2)Bar code indexing (field #3)Integrated match and merge data

( field #4 & #5)

Total savingsX number of stations

AnnualSavings

$3,182 $1,520 $3,325 $4,798 $9,785

$22,610

COLD(Computer Output to Laser Disk)

• Any data created in a computer should be archived directly to image vs. print to scan– Reports

• No more Green Bar Reports

– Accounting Data• Output to an Electronic Template

Electronic Signature

• Capture Signature Through Attached Pad

• Pasted Signatures are not Considered Legal– Credit Card Transactions– Insurance Applications– Insurance Claims– Loans – Many More

Walter H. Hopkins CompanyBusiness Organization Solutions™

For more information:

Jerry Van Loozen, CDIA

jvanloozen@walterhopkins.com

404-931-4699 direct