Business Case for Change: Return on Asset Reliability (ROAR™)
Establishing a business case for change is a necessary first step in most implementations.
GPAllied understands that the effectiveness and efficiency of the assets you employ
are what drive the financial performance of your company. Our metric called Return on Asset Reliability (ROAR) shows the financial impact
of uncovering the hidden potential in your currently installed asset base. With
ROAR, you can realize a higher return with little to no capital investment. ROAR
is the primary driver behind building your business case for change.
Recognizing that business needs vary, GPAllied offers several alternatives for developing
your business case:
- Maturity analysis (levels of achievement)
- Theory of constraint (TOC) analysis
- Value stream mapping and planning
- Lean opportunity analysis
- Change readiness survey
- Benchmarking
- Transformational analytics
- Process simulation modeling
- Key performance indicator development
- Process waste analysis
- Day in the life of (DILO)
Understanding the financial impact of system failures and inefficiencies is only
part of the story. A complete analysis of the costs associated with conducting your
improvement initiative also involves items like:
- Internal labor costs (including overtime)
- Number of machines
- Bill of materials accuracy
- Downtime costs
- Repair costs
- Energy costs
- Power consumption
- Evaluation of the plant culture
- Contractor costs
- Number of planners
- Scrap/rejects/return costs
- Number of engineers dedicated to maintenance
- Staffing changes
- Number of predictive maintenance (PdM) personnel
- Amount of PdM hardware & software
- Current preventive maintenance (PM) program evaluation
- Future PdM design changes
- First-time-through quality
- Rolled throughput yield
- Dock-to-dock flow time
- Inventory turns
- Customer demand
- Length of project
- Process cycle time
- Product or part variety
- Lead time
- Total production & maintenance space
Once your company’s “hurdle rate”* is known, GPAllied uses the
data collected to calculate a return on investment for potential savings and evaluate
the economics of various solutions. The result of this process is a cost-effective
implementation for your company.
Contact us today to learn more about how GPAllied can help you build a business
case for change:
* Hurdle rate: the rate of return your company needs to undertake a particular project.