What is the roi for the process improvement in example 167, Mechanical Engineering

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What is the roi for the process improvement in example 167

What is the ROI for the process improvement in Example 16.7 if the factory operates 300 days per year? Would you invest in this company?

Example 16.7

An engineer proposes an improvement to an existing process. The cost required to make this process improvement (PI) is $100,000. Suppose the process makes 100,000 widgets/day. If the proposed process improvement saves one cent per unit ($0.01/unit), what is its BEP for the PI?

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