Five sources of return
- Direct time savings on automated tasks.
- Error reduction: less scrap, rework and field fixes.
- Faster quotes: higher win rates and earlier revenue.
- Capacity: more orders without new hires.
- Knowledge retention: lower risk when key people leave.
Worked example
A machinery company with 8 design engineers automates drawing creation, BOMs and exports for its main product family.
| Item | Calculation | Annual value |
|---|---|---|
| Time saved | 6 h/week × 8 engineers × 46 weeks × ₹900/h | ₹19,87,200 |
| Fewer errors | 10 fewer rework incidents × ₹40,000 | ₹4,00,000 |
| Faster quotes | 2 extra orders won × ₹2,00,000 margin | ₹4,00,000 |
| Total annual benefit | ₹27,87,200 | |
| Project cost | Development + deployment | ₹6,00,000 |
| Annual maintenance | Updates for new CAD versions | ₹1,00,000 |
First-year ROI = (27,87,200 − 6,00,000 − 1,00,000) ÷ 7,00,000 ≈ 298%
Payback ≈ 7,00,000 ÷ (27,87,200 ÷ 12) ≈ 3 monthsThis is an illustrative example. Use your own rates and conservative estimates for your business case.
Savings business cases often forget
- Senior engineers freed for new product development.
- Shorter onboarding for new engineers.
- Avoided overtime and outsourcing during peaks.
- Better customer experience from faster, more accurate responses.
Costs to include honestly
- Development, testing and deployment.
- Engineer time for specification and testing.
- Template and data clean-up.
- Yearly maintenance for CAD version updates.
- Training and change management.
A conservative business case that is achieved builds trust for the next automation project.
Reducing investment risk
Start with a small, measurable project. Track actual results against the business case, then reinvest part of the savings into the next phase.
Build your business case with ENGIMANDI
We help clients estimate ROI before development, then deliver CAD automation in measurable phases. Contact us for a free assessment.