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ROI & Justification for Smart Manufacturing

Each and every year, manufacturing companies are faced with a diverse set of business issues/challenges which require some form of capital investment to be made across one or more elements of their organization. Executive management within these organizations are looking to invest their funds wisely, challenging their business leaders to discover and present opportunities/projects that could significantly impact bottom line revenue.

The challenge faced by these manufacturing business leaders is assembling a credible business case that clearly articulates the value of an investment.

The ROI/Justification Working Group focuses on understanding how to justify investments and appropriately calculate the expected business benefits of various types of projects that change business processes and enterprise solutions.


Members can join this working group in the InfoHub.



Smart Manufacturing Justification & ROI Online Course

An organization's journey towards Smart Manufacturing is marked by milestones, based on an established vision and roadmap towards intelligent, real time orchestration and optimization of business, physical, and digital processes within factories and across the entire value chain. Often these milestones require the development of a justification and ROI, and in many cases, the implementation of a Manufacturing Execution System (MES), or other manufacturing software system, is an important step along the path.

The course will introduce you to the concepts and major components required to complete an ROI and justification incorporating some examples from MES.  It will also provide guidance about the kind of questions that need to be answered throughout the process, and the various considerations that need to be included in the calculations.


ROI & Justification for MES/MOM

The intent of this Guidebook is to discuss classic investment metrics and models, organizational dynamics and key fundamental steps in building and presenting a business case to enable manufacturing business leaders to secure investments for manufacturing IT projects .

This team created a ROI Guidebook to accompany those on the strategic initiatives and metrics.  Some of the topics this Guidebook covers are:

  • Why Cost - Benefit Analysis? (Discuss why companies/organizations use cost-benefit analysis to justify manufacturing IT expenditures, etc.)
  • Understanding Investment Metrics and Models (Discuss/review classic financial models used in cost justification ... NPV, TCO, IRR, ROA, etc.)
  • Cost Justification Challenges and Obstacles (Discuss/review classic challenges and obstacles faced in building and presenting a business case )
  • Building the Business Case / Cost-Benefit Methodology (Discuss/review the elements of a good business case , as well as the supporting information )
  • Presenting the Business Case (Discuss/review typical stakeholders/audience and how/what to focus on when presenting a business case