ROI Calculation for a Custom Control Software Solution
The following is a conservative estimate of the return on investment by an IAS customer who required development of a custom control software solution for its existing brush making equipment.
PROGRAMMING
Estimated current average programming time as provided by customer = 40 hours
(Large brushes, 4000 hole)
Estimated average programming time for smaller programs = 20 hours
Average estimated programming time = 30 hours
Estimated current in-house programming costs = $20.00 / hour
30 hours/brush @ $20.00/hr programming time = $600.00
IDLE TIME
For every hour of programming time, machine is idle.
Estimated average machine idle time = 30 hours
Estimated cost of machine idle time = $100.00 / hour
30 hours machine idle time @ $100.00/hr = $3,000.00
ROI
Total current average cost / brush type = $3,600.00
Customer will see a return on investment after only three brush types. Based upon current figures, this translates into less a one month return.
| |
Current |
IAS |
| Time |
Cost |
Time |
Cost |
| Initial |
|
|
x hours |
$ 9000.00 |
| Programming |
30 hours |
$ 600.00 |
0 hours |
$ 0.00 |
| Idle |
30 hours |
$ 3,000.00 |
0 hours |
$ 0.00 |
| Total |
|
$ 3,600.00 |
|
$ 9000.00 |
| ROI |
2.5 Brush Changes |
IAS - Integrating technologies to provide your engineered solution.
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