MVIRS Cost/Benefit Analysis
The benefits of MVIRS are both intangible
and tangible. Intangible benefits
include the professional-looking Customer Inspection Report that can be
given to the customer, and the potential additional work that can result from mechanic's comments included on the Customer Inspection
Report noting potential problems that should be addressed.
The main tangible benefit is the reduced time required
to complete MV-431 and MV-480 forms. |
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Example 1
A small station employs 2 licensed inspection
mechanics and performs 600 inspections per year. The shop
labor rate is $40. We will conservatively estimate that
MVIRS saves an average of 3 minutes per inspection. |
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| Total minutes saved (600 X
3) |
1,800 |
| Value of minutes saved
based upon labor rate ($40 / 60 min. * 1,800) |
$1,200.00 |
| First year cost of MVIRS
|
$579.00
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| First Year Savings |
$621.00 |
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Example 2
A large shop employs 8 licensed inspection
mechanics and performs 5,000 inspections per year. The shop
labor rate is $45. We will conservatively estimate that
MVIRS saves an average of 3 minutes per inspection. |
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| Total minutes saved (5000
X 3) |
15,000 |
| Value of minutes saved
based upon labor rate ($45 / 60 min. *
15,000) |
$11,250.00 |
| First year cost of MVIRS
|
$954.00
|
| First Year Savings |
$10,296.00 |
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