| 1 MINUTE READ

Investing in Tech Is a Strategy, Figuring ROI Is a Strategic Tool

This short article by Jeff Reinert, president of Index Corp., outlines the multi-step process for justifying an investment in the latest CNC machining technology. Calculating the return on investment (ROI) is a useful step in this process, but only one of the factors a manufacturer must consider in the decision to buy a new machine. Read the article here.
#workforcedevelopment

Share

Facebook Share Icon LinkedIn Share Icon Twitter Share Icon Share by EMail icon Print Icon

�

Why invest in new CNC technology that seems unfamiliar, even a little scary? Jeff Reinert says that a bold approach to justification can show shops that they need to jump in if they want to compete.

This short article by Jeff Reinert, president of Index Corp., outlines the multi-step process for justifying an investment in the latest CNC machining technology. Calculating the return on investment (ROI) is a useful tool, but only one of the factors a manufacturer must consider in the decision to buy a new machine.

Reinert identifies three main steps:

  • Understand your machining costs and evaluate impact of a faster, more capable process.
  • Understand potential benefits of the latest CNC technology (Reinert lists eight measurable ones as a start).
  • Understand the costs of older equipment (including operator skills that may vanish).

After taking these steps, calculating ROI can be a concise and useful analysis to back up a decision. However, as Reinert explains, ROI is not the same as profitability and competitiveness. His advice puts the ROI calculation in perspective.

Read the article here.

RELATED CONTENT

  • Setup Reduction Is Central to Lean Manufacturing

    This shop cut average setup time nearly in half. Now small batches can move quickly through the production process, making the company more responsive to customer needs than ever before.

  • Machine Shop Marketing

    How will you connect with your next customer? Two contract shops describe methods that seem to work.

  • Workholding That Works for Jesel

    The maker of racing engine components produces parts that have many permutations within each product line. Here is how Jesel sets up work for cost-effective, responsive machining.