# Module 14: The Automation Audit
## Capstone: Audit Template and ROI Framework

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## Part 1: Process Inventory

Participants map every recurring process in their department. Use this template.

### Department: ______________________

| # | Process Name | Frequency | Who Does It | Time Per Occurrence | Monthly Hours | Pain Level (1-5) | Current Tool |
|---|---|---|---|---|---|---|---|
| 1 | | | | | | | |
| 2 | | | | | | | |
| 3 | | | | | | | |
| 4 | | | | | | | |
| 5 | | | | | | | |
| 6 | | | | | | | |
| 7 | | | | | | | |
| 8 | | | | | | | |
| 9 | | | | | | | |
| 10 | | | | | | | |

**Instructions:** List every process your team does at least weekly. Include the mundane ones. Especially the mundane ones. Those are where the time hides.

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## Part 2: Automation Scoring Matrix

For each process from Part 1, score it on these dimensions.

| Process | Repetitive? (1-5) | Structured Input? (1-5) | Clear Rules? (1-5) | Error-Prone? (1-5) | Time Value? (hrs/mo) | **Total Score** |
|---|---|---|---|---|---|---|
| | | | | | | |

**Scoring guide:**
- **Repetitive:** 5 = identical every time. 1 = unique every time.
- **Structured Input:** 5 = same format always (CSV, form, template). 1 = unstructured, different every time.
- **Clear Rules:** 5 = a checklist could describe the logic. 1 = requires nuanced judgment every time.
- **Error-Prone:** 5 = mistakes happen frequently. 1 = rarely goes wrong.
- **Time Value:** Raw monthly hours this process consumes.

**Total Score** = Sum of first four columns x Time Value. Higher scores = better automation candidates.

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## Part 3: ROI Calculator

For the top-scoring process, calculate the business case.

### Current State
- Hours per month spent on this process: ___
- Fully loaded hourly cost of the person doing it: $___
- Monthly cost (hours x rate): $___
- Annual cost: $___
- Error rate (if applicable): ___%
- Cost of errors per year (rework, customer impact, penalties): $___

### Automated State
- Estimated hours per month after automation: ___
- Time savings per month: ___
- Setup time to build the automation: ___ hours
- Claude subscription or API costs per month: $___
- Monthly savings: $___
- Payback period: ___ weeks

### The Calculation

```
Annual Time Savings = (Current Hours - Automated Hours) x 12
Annual Cost Savings = Annual Time Savings x Hourly Rate
Annual Error Reduction Savings = Current Error Cost x Expected Reduction %
Total Annual Benefit = Annual Cost Savings + Annual Error Reduction Savings
Total Annual Cost = (Claude Subscription x 12) + Setup Time Cost
Net Annual ROI = Total Annual Benefit - Total Annual Cost
Payback Period = Setup Time Cost / Monthly Savings
```

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## Part 4: Pre-Filled Example (Facilitator Demo)

Walk through this completed example on screen before participants do their own.

### Process: Weekly Defect Report Compilation

**Current State:**
- Hours per month: 32 (8 hrs/week x 4 weeks)
- Hourly rate (fully loaded): $55
- Monthly cost: $1,760
- Annual cost: $21,120
- Error rate: 12% (data entry mistakes caught in review)
- Cost of errors: ~$2,400/year (rework time + one customer-facing report with wrong data)

**Automated State:**
- Hours per month after automation: 6 (1.5 hrs/week for review and adjustments)
- Time savings: 26 hours/month
- Setup time: 8 hours (building the skill, testing, refining)
- Claude Pro subscription: $20/month (already had it)
- Monthly savings: $1,430 in labor + reduced errors

**ROI:**
- Annual time savings: 312 hours
- Annual cost savings: $17,160
- Annual error reduction: ~$2,000
- Total annual benefit: $19,160
- Total annual cost: $240 (subscription) + $440 (8 hrs setup x $55) = $680
- **Net annual ROI: $18,480**
- **Payback period: 3.7 days**

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## Part 5: Leadership Presentation Outline

The capstone deliverable: present the automation business case to leadership.

**Slide 1:** Title + one-sentence summary of the opportunity
**Slide 2:** The process today (workflow diagram, time, cost, pain points)
**Slide 3:** The automated process (new workflow, what changed, demo screenshot)
**Slide 4:** ROI calculation (the numbers from Part 3)
**Slide 5:** Implementation plan (timeline, resources needed, risks)
**Slide 6:** What's next (the other high-scoring processes from the audit)

Participants build this presentation using Claude Cowork as their final capstone deliverable.