Made2Manage ERP ROI - Greater Shop Floor Efficiency

Fact: Shop floor personnel will be more efficient, thereby reducing direct and indirect labor costs.

• Planning in advance will lead to tighter and more accurate schedules.
• Generating accurate schedules will lead to a higher percentage of direct labor versus total hours worked.
• Gaining direct labor efficiencies will translate into increased throughput (i.e., profit) without adding people.
• Capturing shop floor data in real time allows you to be proactive, instead of reactive, leading to more efficient direct labor.

Net Benefit: Annual savings on direct labor costs = $80,000 - $160,000

Logic: A $5 million company will reduce its direct labor costs (as a percentage of revenue) by 4-8 percent. Based on average direct labor costs equal to 40 percent of revenue, the net return to the company is $80,000 - $160,000 annually.