Calculate Your Return on Investment by Design Simulation with Flomerics Software

This section explains the return on investment experienced by companies using Flomerics simulation software in their design process. Various questions are posed, with “sample” answers. Simply insert figures or estimates for your own company to calculate your Return on Investment (RoI).

	About your company/division	Sample Company	Your Company
a)	Approximately how many new products, or reconfigurations of existing products, does your company design each year?	4
b)	What percentage of new products (or reconfigurations of existing products) fail thermal/fluid testing first time?	50%	%
c)	What are your estimated total annual costs associated with ‘field failures’ (customer returns, warranty liabilities, field engineer calls, etc)	$500,000	$

	Estimate savings achieved through improved thermal/fluid design	Sample Company	Your Company
d)	On average, how many thermal/fluid tests per new product design does your company perform?	5
e)	What is the cost of a typical thermal/fluid test, including staff time, materials, use of laboratory, test & measurement equipment?	$5000	$
f)	Direct cost of thermal/fluid testing per year: (a x d x e)	$100,000	$
g)	If one or more components do not work correctly, on average how long does it take to carry out a ‘fix and re-test’ redesign cycle to solve the problem?	3 weeks	weeks
h)	Typically, how many of these ‘fix and re-test’ cycles are needed per design?	2
i)	Total time spent in redesign [g x h]	6 weeks	weeks
j)	What are the approximate direct (rework) costs to your company of each ‘fix and re-test’ re-design, including time and materials?	$30,000	$
k)	Total direct costs of redesign associated with products failing physical tests [a x b x h x j]	$120,000	$
l)	If the final product ship date is delayed by the time show at (i) above, what is the estimated cost in terms of lost/delayed sales?	$100,000	$
m)	What percentage of field failure costs in (c) above are associated with fluid flow or thermal issues?	25%	%
n)	Cost of field failures associated with physical design [c x m]	$125,000	$

Using the example figures above, we can estimate the annual savings due to the correct and timely use of Flomerics’ simulation software in the design process

Direct savings (on testing, rework and associated costs) [k]	$120,000	$
Direct savings plus lost/delayed sales element [k + l]	$220,000	$
Direct savings plus lost/delayed sales and field failure elements [k + l + n]	$345,000	$

The financial case for using Flomerics simulation software is often compelling. The testimonials from companies that have successfully implemented Flomerics simulation software in their physical design process also clearly show the benefits. For more up-to-date customer testimonials, please visit www.flomerics.com/testimonials/

To generate a customized report for your company enter your company name and click Generate Report.