Quote-Hour Checkup / Resources / ROI definition
How "48 hours saved a month" is calculated: the ROI of one quoting process
The same process, and one person says 48 hours saved a month while another calculates 52. The difference is not skill — it is the definition. And that difference matters when money is on the table.
This piece lays the arithmetic out: which inputs matter, how each step converts, and why we publish a single definition. Every figure below is an estimate, and every one can be recomputed with a local command (kept in-house; ask us and we will send the run record).
1. First, take "48" apart
"48 hours saved a month" is the most common back-of-the-envelope figure out there:
- one flow saves 12 hours a week;
- a month is taken as 4 weeks;
- 12 x 4 = 48 hours/month.
The problem is the second step. A month is not 4 weeks: 52 weeks a year / 12 months = 4.33 weeks/month.
The same 12 hours a week becomes 52 hours a month at 4.33 weeks — 4 hours more, or 48 hours a year.
So our definition is hard-coded into the tool: convert from 52 weeks a year, report the monthly average, and state the definition in the report. However a client presses their own calculator, the numbers match.
It is also why we accept delivery against a single measure — hours saved. Agree the definition and the numbers stop arguing.
2. Four inputs, no more
To size one flow, a client answers four questions:
| Input | Example | Note |
|---|---|---|
| People involved in the flow | 4 | Hands-on people, excluding approvers |
| Times it happens per week | 25 / week | Count of quotation requests, orders or statements |
| Minutes per run | 12 | Includes switching windows, finding files, checking |
| Monthly cost of the role | CNY 8,000 (or CNY 46/hour directly) | Hourly cost = monthly cost / 21.75 days / 8 hours |
Note the third column: the client never has to convert "hours per person per week". Frequency x minutes / 60 is the tool's job — the step most often got wrong, and most often got wrong in a way that flatters the seller.
3. Run it on the spot (the tool's raw output)
Feeding in the figures above (4 people x 25 runs/week x 12 minutes, hourly cost CNY 46):
- Today: 20 hours/week to 1,040 hours/year (x 52 weeks);
- Hours saved a year, three scenarios (estimates):
- Conservative (40% automation rate): 416 hours/year, about CNY 19,136/year
- Base case (60% automation rate): 624 hours/year, about CNY 28,704/year
- Optimistic (80% automation rate): 832 hours/year, about CNY 38,272/year
- Monthly saving (base case): 52 hours/month, about CNY 2,392/month.
So: a flow running at 20 hours a week saves 52 hours a month in the base case — a single "4 weeks or 4.33 weeks" away from "48".
And 40% / 60% / 80% are not made up: they are tiers for "how much of this flow can genuinely be handed to a system", judged step by step on the site walkthrough.
4. Why we accept delivery on the conservative tier only (40%)
At the first conversation we talk about the conservative tier only: 416 hours/year.
The reason is plain: the base case is for making the decision; the conservative tier is for accepting delivery. The contract annex fixes the 40% figure — miss it and the final payment is reduced by formula, rather than argued about on acceptance day.
- The hours baseline is timed together by both sides' operators (at least 20 samples, median taken, both sign);
- Then measured on site for four consecutive weeks after go-live;
- Not making anyone redundant still counts as a saving — time freed to chase receivables and follow up customers is still a saving (we count the time account, not the headcount account).
5. Now the money side
Same flow, same inputs (single flow, public-cloud deployment, no system-integration surcharge):
- Suggested project fee: CNY 18,000 (the company floor, not a value-priced figure);
- Operations subscription: CNY 2,000 – 2,160/month (project fee x 8%–12%/month, floor CNY 2,000);
- First-year cash outlay (estimate): CNY 42,000 – 43,920;
- Payback (base case): 7.5 months;
- Diagnostic fee: CNY 3,000 (single flow; credited 100% against a delivery project signed within 60 days).
In one line: the client pays for one flow and gets 52 hours a month back (base-case estimate) — whether that is a good deal is a calculation they can run themselves.
6. You can recompute it
The command behind every number above runs locally, with no network and no data leaving your machine; ask us and we will send the run record for that set of inputs. Swap in your own figures for the people involved, the runs per week, the minutes per run and the hourly cost, and you have your own version.
If it looks worth a closer look: send me your current staffing arrangement and I will produce a 9-step teardown and peer comparison (estimates). Half an hour is enough.
Money and hours here are estimates; contribution rates and salaries vary by region and sector; the actual saving is subject to the signed Baseline Confirmation and Acceptance Report. References and credentials available in person.
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Ask for the reportFigures in this article are estimates and follow the same definition we quote under; contribution rates and salaries vary by country and sector, and the actual saving is subject to the on-site walkthrough and the Baseline Confirmation both sides sign. References and credentials available in person.