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How do you calculate "Cost per click"?

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Marc Tebbens VP, Operations| National Government Services - a division of Elevance Health Oviedo, Fl, United States
In the process we are reviewing, our claims adjusters use computers and enter data and notes in certain fields. Sometimes they enter notes duplicating data already existing in other fields.

We are looking for your ideas on how to calculate costs as it relates to computer typing and processing data on a computer? Is it as easy as salary divided by time study? Or are there better ways you have used or know about? Thanks! and Happy New Year!
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Muzammil Baig, MS(PM), PMP, PMI-RMP Lead Planner| Bechtel Jubail, Saudi Arabia
Good answer by "Das & Anton"
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Kevin Drake Perth, Western Australia, Australia
Jan 02, 2018 2:56 PM
Replying to Sromon Das
...
This is what I've done in one of my previous projects:

1) Create a standard work (SW) document (sample format below)
step 1- log into system - 2 minutes- non value added (nva)
step 2- enter name - 1 minutes- value added (VA)
step 3- enter comments - 3 minutes - (nva)

2) basically the SW document should have:
task number
task description
task cycle time
categorization if task is value added or non value added

the cycle time can be captured 4 or 5 times per week based on gemba walks, so basically one person literally sits with a stopwatch next to the employee and measures the time taken for each task. If you can use a screen recorder it will make the job easier. Also, it's good to have a representative sample (your best employee, newest employee, tenured employee, etc.)

3) Once you have a month's data, you can see which tasks are taking up most time (also $) and what % of your time (or $) is spent on NVA tasks. That will tell you which areas to target for process improvements.

4) Once you have made certain improvements, update the SW document, since it should reflect the most efficient way to perform a piece of work at any given point in time. Repeat the exercise of capturing cycle time by task and again determine which areas to focus on, and basically the process will continue...

/sd
Very good
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Bob Thomas Retired Brentwood, Tn, United States
You might explore why the adjusters are entering the unnecessary data. Many years ago I was an appraiser at Farmers and I know the culture is awful. I would not be surprised to learn that part of the reason is simply CYA, some is because their supervisors have berated them about various issues so that the adjusters feel they have to do it. Bad culture ripples through all aspects of the organization.

Two years ago I interviewed for an IT role at Farmers. The interviewers were rude and obnoxious. It was the most unprofessional interview I've experienced. After I told them I was not interested in their job, I was told they "did not want nice people" working for them.
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Toseef Shabbir Project Controller| MAPA Constructions, KSA Rabigh, Makkah, Saudi Arabia
Jan 02, 2018 2:56 PM
Replying to Sromon Das
...
This is what I've done in one of my previous projects:

1) Create a standard work (SW) document (sample format below)
step 1- log into system - 2 minutes- non value added (nva)
step 2- enter name - 1 minutes- value added (VA)
step 3- enter comments - 3 minutes - (nva)

2) basically the SW document should have:
task number
task description
task cycle time
categorization if task is value added or non value added

the cycle time can be captured 4 or 5 times per week based on gemba walks, so basically one person literally sits with a stopwatch next to the employee and measures the time taken for each task. If you can use a screen recorder it will make the job easier. Also, it's good to have a representative sample (your best employee, newest employee, tenured employee, etc.)

3) Once you have a month's data, you can see which tasks are taking up most time (also $) and what % of your time (or $) is spent on NVA tasks. That will tell you which areas to target for process improvements.

4) Once you have made certain improvements, update the SW document, since it should reflect the most efficient way to perform a piece of work at any given point in time. Repeat the exercise of capturing cycle time by task and again determine which areas to focus on, and basically the process will continue...

/sd
Well Elaborated.
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REZA MOKARRAM AYDENLOU Tehran, Iran (Islamic Republic of)
Great to see someone take the time to write such a comprehensive answer.
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Ethan Clark United Kingdom
To calculate CPC, you need to divide the total cost of your clicks by the total number of clicks. Then, the average CPC will be based on your actual cost-per-click (actual CPC), which is the actual amount you're charged for a click on your ad. Be aware that an average CPC can be different than your maximum cost-per-click
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