We have built a simple excel file to easily evaluate the ROI of ShareMat clients.
We often identify the following 2 areas for improvement:
- Improving the idle rate of your equipment.
- Improving the availability rate of your fleet.
We are going to take a fake client, Mr Equipment, to explain how simply calculate his ROI thanks to ShareMat.
- Improving the idle rate
Mr Equipment owns:
- 100 equipments, with an average operating time of 1300 h/year.
- The average idle rate on its fleet: 38%.
- The average consumption is 20 l / h in operation (price of fuel: 1.30€), and 4 l / h in idle.
- The cost of maintenance is 3€/h.
Mr. Equipment defines the idle rate improvement he wants to achieve for his equipment.
He can reduce it from 38% to 25% by monitoring the use of equipment in real time and encouraging its drivers on fuel consumption.
What does it represent on the 100 materials of Mr Equipment?
– A saving on fuel of €87,880
>> 1300 h * 13% = 169 h reduction in idle hours per year / equipment
>> 169 x 4 l / h x 1.30 € / l = 878.80 € / year / equipment
>> €878.80 x 100 equipment = €87,880
– A saving on maintenance of €50,700 (since the equipment idle hour decrease)
>> 169 hrs x €3 / hr = €507
>> €507 x 100 materials = €50,700
That is a total potential gain of €138,580 / year for a reduction in the idle rate on these assumptions.
Bluffing, isn’t it ?!
And if Mr Equipment only achieves half of his objectives: reduction of 38 to 30% on 80% of his fleet, it is a total gain (fuel and maintenance) of 70,000 € / year !
- Improving the availability of your fleet.
Mr Equipment owns:
- 100 equipment.
- The daily turnover invoices per equipment is : €450/day.
- The unavailability rate of its materials, like most companies in the sector, is around 8% = 20 days a year (maintenance and controls scheduled at the last minute and unavailability of parts, for example)
Mr. Equipment decides how much he wants to improve the unavailability rate of his equipment.
He can achieve a decrease from 8% to 6% of unavailability thanks to a maintenance and control solution that allows better planning and a reduction in equipment downtime.
What does it represent on the 100 equipments of Mr Equipment ?
A gain in production turnover of €225,000
>> 5 days x €450 / day = €2,250 / equipment
>> €2,250 x 100 equipment = €225,000
And if Mr Equipment only achieves half of his objectives: reduction of 8% to 7% on 80% of his fleet, his total gain is still 90,000 € / year.