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Business Case Presentation

This business case presents a 36-month review period with minimum 10% annual return rate. It covers cost analysis, benefits, cumulative cash impact, and net present value for a software upgrade to improve manufacturing processes. Key benefits include reduced downtime costs, improved plant utilization, and enhanced inventory control.

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Business Case Presentation

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Presentation Transcript

  1. Business Case Presentation PREPARED BY Software Supplier ON BEHALF OF Manufacturing Customer

  2. This business case has been produced based upon a 36 month review period and a minimum annual return rate of 10 %

  3. Non-recurring COSTS

  4. Non-recurring costs

  5. Non-recurring Cost Chart

  6. Recurring COSTS

  7. Recurring Costs

  8. Recurring Cost Chart * Values are monthly averages.

  9. Average Monthly BENEFITS

  10. Average Monthly Benefits Chart

  11. Average monthly benefits *benefit details in appendix

  12. Average monthly benefits *benefit details in appendix

  13. Cumulative Cash Impact

  14. Cumulative Cash Impact

  15. Net Present Value INCLUDING DISCOUNTED CASHFLOW

  16. Net Present Value (including discounted cash flow)

  17. Summary

  18. Summary 83.5% IRR exceeds minimum return by 73.5 percentage points Minimum annual return rate: 10.0%

  19. Appendix

  20. Increased Plant Utilization

  21. Reporting Savings

  22. There are 25 people in the design department and they currently spend a 25% of time looking for and handling information which will be kept centrally ... Activity Time Savings

  23. Reduce Downtime Costs

  24. Bill of Materials Management Savings

  25. Improved production quality will lead to reduced need for warranty set-aside. Counted from the start of year 2. Reduce Warranty Provisions

  26. This benefit will be realised after the start of the second year. Better Forecasting - Control Inventory

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