While the average ROI for ERP implementation depends on many factors, we've designed a free ERP ROI calculator to provide an informed idea of what our program can do. You give us the details of your unique business, and we create a personalized report of the impact our ERP can have on your shop.
RETURN ON INVESTMENT WITH PROSHOP
There are many reasons why clients choose to implement ProShop. Foremost among those reasons is to provide a positive return on investment (ROI).
Generally speaking, ROI is a metric demonstrating the efficiency and profitability of an investment you make for your business. Each piece of machinery and infrastructure has an ROI.
In the manufacturing industry, an ROI prediction tells a business about the savings or revenue it can generate from a piece of equipment or technology after accounting for all costs involved. Worthwhile purchases should demonstrate a high ROI percentage.
There are four main ways that ProShop provides ROI compared to legacy ERP systems:
Increased Revenue
Reduced Overhead Labor Costs
Reduced Direct Labor Costs
Reduced Purchasing Costs of Goods
1. INCREASED REVENUE
ProShop allows companies to increase their revenue through a number of mechanisms, including:
A reduction in work-center downtime: ProShop improves scheduling, setups and planned maintenance. Your equipment spends less time idle and allows more available capacity to be sold.
An increase in overall shop velocity: Getting jobs through the shop faster allows for higher sales as a result. Less time spent per job keeps you on target to meet customer demands and take on more work.
Less paperwork to fill out: Our paperless system involves fewer time-consuming manual processes. That means more time doing value-added work and strategic tasks instead.
Added confidence and capability: ProShop's powerful planning tools give shops the confidence and ability to take on more complex projects with multi-level assemblies and multiple outside processes rather than just component parts. These jobs are higher-priced and more lucrative with less competition and higher margins.
EXAMPLES
Nezkot
Nezkot Precision Tooling & Engineering was able to bill 30% more revenue within a year of implementing ProShop as a result of several of these factors, with the same exact staff.
East Branch Engineering was able to increase revenue by 18% in the first year with the same exact staff, primarily due to eliminating downtime, increasing spindle utilization and enabling faster setups.
ProShop allows companies to often free up overhead staff who become redundantor grow with the same overhead staff. Our powerful platform delivers functionalities that boost your manufacturing ERP ROI by:
Making dramatic increases in efficiency: We've included a full suite of modules for improving office operations, including planning, order entry, purchasing, project management, expeditors and more. Get more work through the same staff.
Transitioning overhead staff into direct labor: ProShop use allows you to now-redundant overhead employees to more direct labor roles to increase throughput and revenue.
EXAMPLES
Sealth
Sealth Aero Marine was able to free up three full-time overhead positions from their staff of 35 employees — two expedite positions that were no longer needed and two planning positions that were consolidated into one. These staff members were moved to more direct labor roles, increasing throughput.
Frey & Weiss was able to free up nearly three and a half full-time overhead positions. What once took two people for job planning and purchasing, now takes eight hours per week for one. What once took three people for job planning and order entry now takes just one person. One staff member left for extended maternity leave, and two were moved to more direct labor roles, increasing throughput.
Hill Manufacturing & Fabrication was able to save over 40 hours per week in their management team, giving the team capacity to manage 50% quarter-over-quarter growth for the last three quarters since implementing ProShop.
Direct labor costs are an essential component of any ERP ROI calculator. ProShop can help you positively impact those numbers with more efficient shop floor operations, faster setups, less labor per job and a lower scrap rate. We deliver these results by:
Providing paperless/visual work instructions: Job setups go faster with centralized, shared resources. That speed means meeting or beating targets more often.
Supporting documented training: ProShop contains a training module that makes tracking and assigning qualified personnel easier. With complete visibility, a wider range of employees can successfully set up jobs, reducing machine downtime and waiting time.
Including robust machining modules: We've built ProShop with industry-specialized tools other ERPs and legacy systems lack. Features like our cutting tool management specifically reduce the setup time of machining operations.
Integrating custom workflow checklists: Built-in tools to ensure that all preparatory work is completed before jobs hit the machines. Customizable process checklists result in dramatic reductions in setup time and downtime between jobs.
Providing quality management tools: In-line inspection capabilities allow shop personnel to monitor production quality and make rapid adjustments to meet standards and customer expectations. As a result, you reduce quality problems and fix issues much more quickly, reducing scrap, rework and remakes.
Creating documentation packages automatically: ProShop contains unique features that lessen manual documentation with information exchanged between modules. Automation of generating quality paperwork dramatically reduces the labor time involved with inspection and document package creation.
EXAMPLES
Nezkot
Nezkot Precision Tooling & Engineering was able to bill 30% more revenue within a year of Implementing ProShop as a result of several of these factors, with the same exact staff.
East Branch Engineering was able to increase revenue by 18% in the first year with the same exact staff, primarily due to eliminating downtime, increasing spindle utilization and enabling faster setups.
With ProShop, you'll see a major reduction in expediting fees, less need for overnight shipping charges, better purchasing oversight and improved purchasing efficiency. Achieve additional savings with:
Improved visibility of jobs won, purchasing demand and tools to consolidate purchasing activity. These result in more strategic purchasing and lower unit costs with volume discounts.
Much better visibility and forecasting of tools, gauges and materials. You'll reduce the need to expedite items at the last minute.
Better oversight of required shipping dates to outside processes and visibility of the schedule. Together, these factors reduce expediting fees for outside processes.
EXAMPLES
Hill Manufacturing
Hill Manufacturing & Fabrication was able to save over 40 hours per week in their management team, giving the team capacity to manage 50% quarter-over-quarter growth for the last three quarters since implementing ProShop.
East Branch Engineering was able to increase revenue by 18% in the first year with the same exact staff, primarily due to eliminating downtime, increasing spindle utilization and enabling faster setups.
ProShop is a platform created by manufacturing professionals for manufacturing professionals — we know it delivers real-life results because we developed it based on our experience owning a computer numerical control (CNC) machining shop. There's no better time than now to see what ProShop can do for you. Try our manufacturing ROI calculator, then book an appointment with our specialists for a more in-depth look.
