Cut Back on Prototypes

The most direct way to calculate savings induced by engineering simulation investment is to evaluate the cost of physical prototyping:

  • Multiply cost of a prototype times typical number of prototypes during the design process
  • Subtract cost of remaining physical prototypes after the virtual prototyping process

A strict ROI calculation should evaluate the engineering simulation investment and determine the ratio between the savings and the investment.

An example of savings from reduced physical prototyping by the U.S. Department of Defense. The organization adds additional costs including equipment collateral loss that occurs during testing.

 

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).