The Business Case Your CFO Actually Needs
Every plant manager knows OEE monitoring works. The challenge is translating operational knowledge into the financial language that gets capex approved.
The Core ROI Formula
Annual lost capacity, Recoverable portion (25-40%), Implementation cost ($30K-$150K), Annual operating cost, Net annual benefit ($77K-$1.95M), Payback period (2-18 months).
Worked Example: Mid-Size Auto Parts Plant
3-shift, 12 lines, $28M revenue, 58% OEE → Target 66% → Net Year 1 benefit $1,066,879 → Payback ~1 month → 3-year ROI 3,743%.
5 Tips for Presenting to Your CFO
1. Lead with the loss, not the tool. 2. Use their language. 3. Show the benchmark gap. 4. De-risk with phasing. 5. Stack the incentives.
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Complete framework with editable formulas and a CFO presentation template.
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