How to Calculate Savings? Financial Models Help Quantify the Benefits of Improvement Project
In business, an improvement project must return a profit to be considered valuable. This basic principles applies to productivity improvements, growth programs, as well as training sessions and green initiatives. But too many projects are kicked-off and money is spent without quantifying desired outcomes – and good opportunities are not funded because benefits are unclear. Such lack of cost-benefit understanding invariably leads to poor return on investment, project failure, financial losses, and missed chances to improve competitiveness. We can do better.
Use Calculators to Determine Cost-Profit Improvements Based on Quality, Efficiency, Throughput
We have developed online calculators that are simple, yet effective to help managers and controllers quantify improvement potentials, determine the feasibility of a project, and estimate the return on investment. You can now calculate the impact of quality, efficiency, throughput on costs and profits.