Here's a calculation of the cost of using EDI in a non-standard way. Two
common examples of non-standard EDI are, 1) using codes other than those in
the X12 or EDIFACT lists, and 2) placing data in different segments or
fields.
Please comment on the calculations.
I've calculated the cost of implementing one non-standard "incident." The
cost is at least $1100 in the first year and at least $900 per year
thereafter.
Calculation:
1) Initial trading partner setup time, including interaction,
testing and implementation, per transaction set: Normal: 1 to 3 hours. With
non-standard feature: 8-16 hours.
2) Annual maintenance including version updates, testing in
conjunction with other transaction set changes, and miscellaneous
maintenance work: Normal: 16.6 hours. With non-standard feature:49.8 hours.
How did I arrive at these figures? I used the following assumptions:
Assumption: The average EDI analyst earns 45,000 per year plus overhead of
25%, which brings the total to 56,250. The number of hours worked is 2000.
Therefore, the cost per hour is about $28.
Assumption: One analyst can handle about 120 trading partner / transaction
set combinations. (I know this figure would vary widely depending on
transaction set complexity and volumes sent or received. Is this a good
average?)
Calculation:
The initial year costs would be:
1) extra cost for setup would be non-standard less standard, or 8 to
16 hours less 1 to 3 hours plus
2) extra maintenance cost during the year would be 49.8 less 16.6,
or 33.2 hours
Therefore, the extra cost, first year, would be 40.2 to 46.2 hours
or $1,125.60 to $1,293.60.
Also, the extra cost, per year thereafter, would be 33.2 hours or
$929.60
Using non-standard EDI looping structures would incur much higher costs.
What are some other examples of non-standard EDI?
Thanks,
Orin Rehorst
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