Use Our ROI Calculator To See How Much You Could Save With DFMA

What Our DFMA ROI Calculator Does

Our calculator is designed to give you a detailed picture of the ROI you can reasonably expect for your circumstances, with just a handful of quick variable inputs. We do this by splitting the overall ROI into three different categories:

• DFMA Product Simplification: How much can you save by reducing part count and product assembly complexity?
• Should-Costing: What should your baseline costs look like for supplier negotiations?
• Engineering Productivity: How many hours could you save by tackling these design changes as early as possible in the development process?

To generate a report, you’ll follow a simple three-step process. First, choose a small, medium, or large effort size based on the scope of your initiative. For instance, choose “small” for a pilot program or if you only expect to run one to two DFMA projects per year. On the other side of the spectrum, choose “large” for multi-site or global efforts with five or more annual DFMA projects. “Medium,” as you might expect, is somewhere in between. You can run multiple scenarios if you’re not sure which to pick.

Next, select between conservative, typical, or aggressive savings models based on real-world results from our client case studies. We recommend running each of these preset savings scenarios to get a well-rounded picture of what you could achieve, including best- and worst-case scenarios.

Finally, you can (optionally) tweak each variable in the form if you have a ballpark estimate of your numbers. Adding your custom information isn’t necessary (which is why this form comes pre-populated), but it can help you fine-tune your results if you want the most realistic estimate possible.

Don’t forget to select your industry as well to get the most accurate estimate!

Understanding the Math

You don’t have to understand the formulas we use to arrive at your results. However, it helps to know what’s going on behind the scenes if you have to, for example, pitch to your executive team why DFMA software is a great option for your company.

Our calculator computes your expected ROI using the following logic:

• Total Annual Savings = Simplification Savings + Net Should-Cost Savings + Productivity Savings
• Year 1 Cost = Software Costs + Training Costs + One-Time Non-Recurring Engineering (NRE) Costs (including the engineering effort needed to implement the redesigns)
• Year 1 ROI = (Total Annual Savings - Year 1 Cost) / Year 1 Cost
• Ongoing ROI for year 2 and beyond = (Total Annual Savings - Recurring Software Costs) / Recurring Software Costs

Calculate Your Example Savings In Seconds

You can easily play around with the variables and preset options in our calculator to see how your business could fare in different scenarios.

For example:

A medical business using “Medium” effort size and “Typical” savings settings might save (very conservatively) around 12% in parts on a given project.

Using the pre-populated values, this comes to $170,833 in savings per product redesign and a total annual savings of $1,089,887. In the first year, ROI will hover around 510%, but it should even out at 707% per year after that.

Let’s assume that the same medical company wants to be even more conservative in their estimates. If the business leader plans to do one product redesign per year and chooses the “Conservative” setting, he or she would see that the expected savings per product are around $127,875.

However, the company will also save about $146,200 in should-cost negotiations and $44,800 in engineering savings, which brings the total annual savings to $318,875. Not bad for just one product redesign per year!

That first year’s ROI may only be 185%, but in the second year and beyond, it should level out around 325%. Even with these conservative settings, the company will still be able to pay for the software in about 5 months.

Large companies can easily achieve savings in the millions.

An aerospace enterprise willing to commit to five redesigns per year on an aggressive savings setting could expect to see total payback within just two months and annual savings of nearly $2 million dollars ($1,972,688 to be exact).

That equates to a Year-1 ROI of 648% and a Year-2+ ROI of 839%, which makes the initiative clearly worth the investment.

Ready to see savings in the real world?

These ROI calculations are all hypothetical until you take the leap and start streamlining your products to be simpler and more efficient. You’ll only see those dollar signs staying in your company’s bank account once you implement these DFMA practices into your design and manufacturing stages.

Contact us when you’re ready to start saving, and we’ll help you get started.