ROI Calculator

Labor Costs

This should include the full cost of labor, taxes and benenfits, plus any other employer contributions such as 401K matches. For employees in the department where you are implementing this capital investment. Close Tooltip
Labor cost average per hour:
$0 $200
How many hours per day do you operate the equipment multiplied by the number of employees that are needed to meet current demand. Example: If you have two saws with two employees running 6 hours each, your total labor hours will be 12. Keep in mind that if you are running multiple shifts per day you need to add these hours to your total. Close Tooltip
Current labor hours per day:
0 500
Daily Labor Cost:

Material Costs

This is the average of material costs that the department processes. Use the same unit cost as you use for units below. Close Tooltip
Material costs (on average) per linear foot/meter, board foot or cubic meter
$0 $250
Total raw material processed in this department per day. Make sure that average material cost is in the same linear foot/meter, board foot, or cubic meter as you used for material cost above. Close Tooltip
Total linear foot/meter, board foot, or cubic meter per day
0 10,000
Daily Department Material Cost:

Rework Costs

How many parts on average are being reworked daily. This means parts that were cut to wrong lengths, or for other reasons where part was unacceptable for future process. Studies suggest that, on average, there are between three to seven parts per hundred cut incorrectly when manual stop systems are used. Close Tooltip
Number of parts reworked per day
0 500
What is your guesstimate as to the cost per part reworked? This should include disruption to production flow, labor to track and remake the part, along with additional material costs. Close Tooltip
Cost of each part reworked
$0 $500
Daily Cost of Rework:

Investment

Make sure to include freight costs, installation costs, tooling and fixture costs along with training costs. Close Tooltip
Total investment
$0 $500,000
Based upon your understanding of the equipment you intend to install, how much labor time do you think you will save, as a percentage?
Estimated reduction in labor (as percentage)
0% 100%
Depending on the solution that you intend to implement, your savings in material can be anywhere from 3-4% to as much as 30-40%. The difference in you material savings will be far more dramatic when using defect optimization due to the fact that you will be able to buy less expensive material and typically get the same yield due to the ease and power of defect optimizing. Close Tooltip
Estimated reduction of material thrown in dumpster (as percentage)
0% 100%
Estimated reduction of parts reworked per day (as percentage)
0% 100%
How many days per year is this department operating? If you shut down for maintenance or other reasons, you may want to reduce this number. 2015 has 251 working days. Close Tooltip
Working days per year
0 365

Results:

Annual Savings
$21,264.72
per year
ROI
177%
net of depreciation
Payback Period
6.8 Months
net of depreciation

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Disclaimer:

TigerStop provides this savings tool in good faith as a service to help customers in analyzing potential cost savings when purchasing and utilizing our products. Data provided for the calculation is the user's responsibility. We do not make any representations or warranties of any kind on the information provided. We also disclaim any liability or responsibility for the accuracy, correctness, or completeness of any information provided.

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