1. Project justification.
- Author
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Kaiwen Cheng
- Subjects
- *
INDUSTRIAL management , *JUSTIFICATION (Theory of knowledge) , *MANUFACTURING processes , *MANUFACTURING industries , *PRODUCTION (Economic theory) , *INDUSTRIAL efficiency , *RATE of return , *FINANCIAL performance , *INDUSTRIAL productivity - Abstract
The article discusses how to handle project justification to avoid the dispproval of a manufacturing project. According to the author, detailing the justification requires a lot of homework because it is the return on investment (ROI) of the project and project leaders must determine the ROI on the efficiency and effectiveness between current and future processes. It is said that it is important to keep track of running time, down time, cycle time, scrap and failure mode and to quantify the control in order to calculate the potential benefit of the project.
- Published
- 2008