Calculating an ROI is not limited to the productivity gains achieved or the savings made on the organisation.
The return on investment calculation must incorporate the savings on direct and indirect costs that the project can generate, as well as the overall productivity gains across the organisation.
Gains on direct costs
| Material Savings
Reduction of Overconsumption Reduction of non-conformities and scrap Optimisation of workshop stock management
|
Labour Gains
Improved Team Efficiency Reduction of team costs Elimination of Unproductive Time
|
| Machine Savings
Improved Team Efficiency Gains in machine capacity |
Energy Gains
Reduced Energy Consumption
|
Gains on indirect costs
| Improved Teamwork | Time Savings in Decision-Making |
Author
Xavier Schuster
Consultant at SXE Consulting. Industrial consulting firm based in Luxembourg, 25 years of experience in operational excellence.
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