Return On Investment Analysis
(A Guide to On-line Analysis Tools)

In helping clients fully understand the financial benefits associated with implementing CAD Centric technology a comprehensive ROI analysis has been developed with the assistance of CAD Centric's accounting firm. These calculations reflect generally accepted methods for calculating investment returns in manufacturing companies.

As an example ROI, CAD Centric has run an analysis for a simple project implementation based on norms that we have seen over the years for utilization, costs, and other factors. The results of that analysis are presented here for your reference and as a guide to you for performing your own analysis. In addtion, CAD Centric has made these analysis spreadsheets available directly to you as you review CAD Centric solution offerings. They are available HERE.

Analysis Factors

The following information represents the “input” data required to perform cost justification analysis using the CAD Centric cost of ownership calculator. Data used in these calculations is based on information obtained directly from customers and where appropriate, industry standards.

Viewing / Retrieving Data
Models per Day	500
Minutes per Model (Manual)	5
Minutes per Model (CAD Centric)	0.5
Burdened Hourly Labor Rate	$35.00
OneView Licenses (Single)	0
OneView Licenses (Corporate-wide)	1
CWEB Licenses	0
Days to Install	3
Translating / Printing Data
Files per Day	0
Minutes per File (Manual)	0
Minutes per File (CAD Centric)	0
Burdened Hourly Labor Rate	$0.00
PDF Publisher	0
PrintRoom	0
CAD Data Exchange ( CDX )	0

Costs with CAD Centric

Costs associated with implementing a CAD Centric solution include products, maintenance, and professional services. Depending on the implementation, various aspects of each of these will be required and are considered in the initial and ongoing costs of this project.

The sample implementation / project is expected to initially cost $224,737 to implement and deploy with a three-year cumulative total cost of $301,040 including costs for maintenance and support.

CAD Centric Costs	Initial	Year 1	Year 2	Year 3	Total
Viewing / Retrieving Software	$176,085	-	-	-	$176,085
Translating / Printing Software	-	-	-	-	$0
Maintenance	$38,152	-	$38,152	$38,152	$114,455
Professional Services	$10,500	-	-	-	$10,500
Total Adjusted Cost	$224,737	$0	$38,152	$38,152	$301,040

 

Direct Benefits

The project is expected to yield a cumulative benefit of $1,023,750 over the three-year analysis period, with a year 1 benefit of $341,250.

Direct Benefits	Initial	Year 1	Year 2	Year 3	Total
Viewing / Retrieving Labor Avoidance	-	$341,250	$341,250	$341,250	$1,023,750
Translating / Printing Labor Avoidance	-	$0	$0	$0	$0
Total Adjusted Benefits	$0	$341,250	$341,250	$341,250	$1,023,750

 

ROI Analysis

The project is expected to yield an ROI of 240%, an IRR of 134% and a payback period of 7 months.

Return on Investment (ROI)	Initial	Year 1	Year 2	Year 3	Total
Total Adjusted Costs	$224,737	$0	$38,152	$38,152	$301,040
Total Adjusted Benefits	$0	$341,250	$341,250	$341,250	$1,023,750
Cumulative Adjusted Costs	$224,737	$224,737	$262,889	$301,040
Cumulative Adjusted Benefits	$0	$341,250	$682,500	$1,023,750
Net Benefit	($224,737)	$341,250	$303,098	$303,098	$722,710
Cumulative Net Benefit	($224,737)	$116,513	$419,612	$722,710
Three Year Net Savings	$722,710
Internal Rate of Return (IRR)	134%
Return on Investment (ROI)	240%
Payback Period (Breakeven)	7 Months

 

Intangible Benefits

Although there are no dollar values assigned for intangible benefits, CAD Centric believes it important to list these benefits.

• Increased Viewing

With the CAD data available on the desktop of each computer, more information will be viewed. Employees will not have to wait to view CAD information because of time restraints on the engineering department or because document control is on the other side of the building.

• Intuitive Manipulation

Manipulation is intuitive and uses standard nomenclature for pans, zooms and view orientation. Users immediately feel comfortable and familiar with the application, making it appealing to more people, shortening the learning curve, and reducing training.

• Data Interrogation

Users have access to many of the entity and attribute information on the drawing, allowing them to access and directly obtain detailed information from the drawing files.

• Standards Based

CAD Centric software is well thought out and completely integrated with the Windows environment. Applications are based on industry standards in order that they may evolve and grow as technology advances. Because of this approach, future growth and flexibility are built in, insuring that new application features can be added quickly and easily.