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How to Justify Assembly Investments

 

AIMCO Guide to Using PERQ


You need to save money or make more money on any investment.  If our solution provides neither, you should not purchase it.  The more we can detail the savings, the easier it is for you to justify the purchase.
 

AIMCO'S PERQ PROGRAM

The savings can occur in many areas.  AIMCO's PERQ program was designed to help you focus on the critical areas involved in manufacturing a product.  These include productivity, ergonomics, reliability, and quality.  Other ways of saving costs are simply reducing the cost of a supply, providing a product that lasts longer, reducing your inventory, or lowering the administrative costs to provide the product.  Let's look at each one individually.

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Most companies have a threshold under which they want to stay for investments.  In years past, companies looked for a payback in under three years or a return on investment of 33%.  More recently, many companies are looking for an 18 month payback or a 67% return on investment.  However, certain high-dollar expenses are considered long term investments.  A longer payback period may be acceptable in these cases.
 
It is important to know this maximum payback period for your company.  This provides great leverage when proposing a solution.  One should get a commitment from the management to use their own guidelines as part of the decision process.  This takes much of the sales pressure out of the situation.  Simply put, if the solution pays for itself within their guidelines, the company should strongly consider it.  If not, one should  either change the solution to meet their requirements or pursue another opportunity.
 
Of course, not all improvements are easily quantified.  Use this as a starting point.  Operator comfort, acceptance, and attitudes are invaluable in maintaining a productive atmosphere.  These elusive improvements are often just as important as the more identifiable financial gains.

 
 
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