ABSTRACT
In this chapter, a method by which to calculate and determine the return on investment of a purchased item will be explained. To understand the concept, several topics will have to be understood. •e goal is for readers to:
1. Understand performance and quality 2. Understand original equipment manufacturer (OEM) concerns such as war-
ranties, recalls, and false claims 3. Define operation and time costs 4. Understand the basis of profit return from a purchase 5. Define cost and value 6. Understand the cost of failure 7. Understand how to calculate return on investment (ROI)
When a purchase is made, it is done with a specific intent-to replace an item or to improve upon a process with a new technology. •e process can be complex, such as an integrated manufacturing line complete with vision sensors and eight-axis articulated robotic arms that position, weld, paint, and move large parts, or more simple such as repair of a pipe valve requiring a stainless steel bolt.
