CAD ROI Worksheet10 Mar, 2010 By: Robert Green
CAD Manager's Toolbox: Delight upper management by organizing your cost-saving ideas with this spreadsheet analysis tool.
Over the years, I've found that being able to produce a return on investment (ROI) analysis for my CAD management projects helps me get projects funded with greater success than any other tool or tactic. The premise is pretty simple: Demonstrate that a project yields savings that are greater than its costs, and a positive return is the result.
To help you perform your analysis, I've posted a slightly edited version of the spreadsheet analysis tool I use on my web site for your use. You can download the spreadsheet, then follow along as I walk through the simple process below.
Simply enter a cost-saving idea into column A, then add in the time savings and labor rate for the person whose time you're saving into columns B and C, respectively. Finally, enter in the costs of implementing your idea in column E and the entire savings, ROI, and payback period will appear as a result.
You still have to collect the data on time savings and costs (sorry, I can't automate that process for you), but you'll have a nice log sheet to document your ideas, and your management teams will love to see it.
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