7. Elements of ROI ROI = (Total benefits – Total Cost) / Total Cost Benefits : Estimated benefits measured in dollars Cost : Estimated cost measured in dollars
11. ROI Example ROI = (235,000-210,000)/210,000 = 11.90% Net benefit = $25,000 235,000 Total 210,000 Total 100,000 Work Effort 95,000 Improved cycle time 25,000 Training 35,000 Vendor 140,000 Reduced defect and rework 50,000 Infrastructure Amount in $ Category Amount in $ Category Benefits Cost
18. Future & Present Value At 10% interest per annum, Value of $1000 after 5 years will be $1611, OR $1000 is present value of $1611 earned in 5th year from now.
ISO 9004 : 2000 To be published. ISO 9000 : To be published. Revision of ISO 8402 : 1994 and ISO 9000-1 : 1994 ISO 19011 : Guidelines for Auditing. ( At present ISO 10011-1 :1990)