R - Return on Investment
The second stage of DRIVE is Return on Investment (ROI)
In the next stage we work with our customers to provide Return On Investment (ROI) statements based on their needs, our experience and other customer successes. The ROI is generated through targeted workshops with the key stakeholders and information users. The workshops create an environment for discussion, discovery and understanding of how your manufacturing performance issues can be addressed and targeted. The ROI phase enables us to fully understand your issues and goals and allows us to align our solutions with these needs. This approach provides our customers with a clear understanding of our services, solutions and experience and significantly aids the project approval stages. We discover and agree benefits and convert these benefits to a mutually agreed value, the accumulation of the benefit values offsets the cost over time and sustainability into the future. From these numbers ROI can be projected.
The ROI formula is ROI = Savings (Year 1 + Year 2 + Year 3) / 3 x 100%
Initial Cost
Discovered benefits have to be converted into financial savings through their believability and to what degree the benefit will transfer in practice. Many benefits will be readily apparent - others may be more obscure, hence the need to discover and evaluate all benefits that are available. The value of the benefits will offset costs over time.