Cut Back on Prototypes
The most direct way to calculate savings induced by engineering simulation investment is to evaluate the cost of physical prototyping:
A strict ROI calculation should evaluate the engineering simulation investment and determine the ratio between the savings and the investment.
France-based Gamma Point has used this approach for plastic profile extrusion die design. A traditional process typically requires five to six trial-and-error experiments costing about $1,500 each. With simulation, the engineering team reduced the number of tests to only two. Consider this extrapolation: If a medium-sized extrusion company designs 50 dies per year, the savings could exceed a quarter million dollars per year, an ROI of 300 percent (considering the cost of software, hardware and engineering staff).