You see a demonstration of equipment that you believe should be part of your company’s automated manufacturing strategy to achieve high throughput with greater quality. The value seems obvious and you believe the long-term benefits far outweigh the initial costs to purchase, install, and train.
But you’re not the one who writes the purchase checks and there are other needs around the plant. You know the arguments that will surface. What if the technology becomes obsolete in a few years? Isn’t the current equipment we have doing well? Sales might slip.
These four points can help you formulate a decision-making framework to understand the Total Cost of Acquisition (TCA) versus the Total Cost of Ownership (TCO):
1. Present the Savings
2. Project the Return on Investment (ROI)
3. Align Decision Makers
4. Dig into the Value