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Shared Services Center Savings as required by shareholders : APPENDIX 6

Workings MCOM MCOM MCOM TOTAL
Sadimba Nakolia (All
Others)
Annual no. of transactions (millions) 1.6 1.9 1.8 5.3

Average no. of minutes spent per transaction per 45 60 90
Operative

Standard Operative costs p/hr (S$) 240 240 240

Operative cost p/transaction (S$) e.g. 240 / 60 180 240 360
* 45
% of transactions escalated to Managers = % of 20% 30% 60%
Management time to support operatives

Average no. of Manager minutes per escalated 90 120 180
transaction.

Standard Manager costs p/hr (S$) 480 480 480

Manager cost per transaction (S$) e.g. 90 / 60 144 288 864
* 480 * 20%

Average no. of Manager minutes per escalated 90 120 180
transaction.

Overhead costs per operative hr (S$) 1,800 1,800 1,800

Overhead costs p/transaction (S$) e.g. 45 / 60 1,350 1,800 2,700
* 1800
Total transaction cost (S$ millions) e.g. 180 + 1,674 2,328 3,924
144 + 1350
Total cost per annum (S$ millions) e.g. 2,678 4,423 7,063 14,164
1674*1.6
Shared Services Pricing/Cost Recover (S$ millions) 1450 * 5.3 7,685
(75% comprising of personnel costs for new jobs
created in Sadimba)
Saving ($ millions) 6,479

Payroll savings in Nakolia & All Others (S$ millions) 600 * 0.2 - 400 200 120

Total Saving (S$ millions) 6,599

Developed by The CharterQuest Institute for 'The CFO Business Case Study Competition 2016'
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