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ROI Analysis Summary
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Dollars
Design Savings = $7,156
14500 ---
13050 ---
11600 ---
10150 ---
8700 ---
7250 ---
5800 ---
4350 ---
2900 ---
1450 ---
$13211
$6055
Without Improved Models
With Improved Models
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Schedule Comparison with and without Improved Models
Without
11
With
6
2
4
6
8
10
12
14
16
18
20
Man hours
Sched. Wks
Other Factors
Costs
Comments/Assumptions
Without Improved Models
First Pass
104
7.2
$8,607
Per iteration
52
3.6
$4,604
Total Per Design
208
10.8
$13,211
2 Total iteration(s) assumed
Engineering Time per Design
99
10.8
Max. # of Designs per year
15
Assumes 30h/week productive time available and 3 weeks vacation
Opportunity cost associated with project delays
$
Total Cost (incl. missed opportunity cost)
$13,211
With Improved Models
First Pass
75
5.75
$6,055
Per iteration
37.5
3.875
$0
Total Per Design
75
5.75
$6,055
1 Total iteration(s) assumed
Engineering Time per Design
56
5.75
Max. # of Designs per year
26
Assumes 30h/week productive time available and 3 weeks vacation
Overall Productivity Improvement
277%
Engineering Design Productivity Improvement
177%
Savings per design
133
5
$7,156
Example Cost of Improved Model Solution
$
# of Designs to Return Investment
0.7
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