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Return on Investment Considerations

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With the advent of computers, complex manufacturing machines and automatic assembly equipment, the urge to automate all aspects of manufacturing strikes many engineers and engineering managers.   However, automation, with its high capital start up costs, is often a difficult sell to management worried about the short term bottom line.  A rapid return on investment (ROI) can quiet management fears and confirm the validity of the decision to automate.  But how does the overworked line engineer (solving problems on the fly just to keep the present equipment running)  or the busy manager (already bogged down with paperwork chores) find the time and energy to analyze his operation and compute capital equipment depreciation, material savings, labor costs and all the other details needed for a complete ROI assessment?

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