Potential Savings with Manufacturing IT

Easily calculate the Return on Investment (ROI)


Before investing in a software solution optimizing production, a company wants to be sure that the investment will pay off. We are happy to help you answer this question by pointing out potential savings. Not all potentials can be quantified, but some definitely can.

Quantifiable savings

Successful users of MPDV's solutions could achieve the following results:

  • Technical efficiency has risen from 88% to 93% and stabilized.
  • Scrap has been reduced from 7% to 3.5%.
  • Improved personnel efficiency from 60% to 72%.
  • Efficiency has been increased by 10%.
  • Machine capacity has increased by 240 hours per week.
  • Work in progress has been reduced from €700k to €400k.
  • Average setup time has decreased from 1:35 hours to 1:00 hour.
  • On-time delivery has been improved by 15%.
  • OEE index has improved by more than 15% in 24 months.
  • Daily meetings have been reduced from about 1 hour to 20 minutes.

Imagine what such improvements would mean for your company!

And then compare the potential savings to the investment for a Manufacturing Execution System (MES) like HYDRA or an Advanced Planning and Scheduling System (APS) such as FEDRA! The result is your ROI.

Use the following formula to easily calculate the ROI: Divide the costs of investment and the annual operating costs by the annual savings. The result will directly inform you about how long it will take for the investment to pay off.

ROI example calculations

Example 1: Introducing an MES helps to save 50,000 euros per year. Investment costs amount to about 35,000 euros and annual operating costs are estimated at 5,000 euros. The calculation therefore is: 35,000 euros + 5,000 euros = 40,000 euros divided by 50,000 euros. The resulting ROI is 0.8, which means that the investment will have paid off in less than a year.

Example 2: Potential savings are estimated to amount to a total of 100,000 euros. Investment costs amount to 130,000 euros and annual operating costs are 20,000 euros. The ROI is calculated as follows: 130,000 euros + 20,000 euros = 150,000 euros divided by 100,000 euros = 1.5. The investment will have amortized in 1.5 years.

MES benefits that cannot be measured

Our customers also report about the following benefits:

Successful with MES

For further information on manufacturing companies using an MES like HYDRA by MPDV, see also our Reference Videos and Success Stories.

Would you like more information? We are happy to help.

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