WHAT IS RETURN ON INVESTMENT (ROI)?
ROI is a financial analysis tool for determining the value and worth of a process improvement or project.
ROI CALCULATOR
Welcome to our ROI Calculator! As a project manager, business analyst, or operations leader, you will find our tool invaluable. Industrial engineers typically perform ROI for process improvement projects across various companies.
First, it is designed to help you determine the Return on Investment (ROI) of your process improvement projects. Additionally, it offers the ease and accuracy to perform detailed ROI analyses, ensuring your projects are both efficient and profitable.
HARD SAVINGS VS SOFT SAVINGS
HARD SAVINGS
Hard savings refer to the direct, measurable and quantifiable financial benefits that result from a process improvement project. These savings are tangible and can be clearly quantified in monetary terms.
This type can include future estimates, but these need to be measurable and quantifiable down the line. When performing Data Analysis, we should see measurable improvements in our process.
TYPES OF HARD SAVINGS
Reduction in Labor Hours
Increased Quality and Decreasing Scrap, Rework Repair %
Increased Production Capacity
Schedule Days Saved
Decreased Maintenance Costs
Reduction in Cycle Times
SOFT SAVINGS
Soft savings are the indirect or intangible benefits that result from process improvement projects. While they may not be directly measurable in financial terms, soft savings contribute significantly to the overall value and success of a project or organization.
Soft can include monetary estimates, but these need to be estimated based on potential benefits provided to the organization or process.
TYPES OF SOFT SAVINGS
Improved Customer Satisfaction
Increased Employee Morale
Decrease Employer Turnover Rate
Increased Safety of a Process