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Design Automation

The ROI of Design Automation for Manufacturers

September 5, 2024ยท6 min readยทTDM Engineering

Design automation has a measurable return on investment. Here is how to calculate it and what to expect from an iLogic implementation.

Design automation is not a cost โ€” it is an investment. And like any investment, you should be able to calculate the return before you commit. Here is a simple framework for evaluating the ROI of an iLogic implementation.

Step 1 โ€” Measure the Current Cost

Start by counting how many design variants you produce per month and how long each one takes. Multiply by your engineer's hourly cost. This is your current monthly spend on repetitive design work.

Step 2 โ€” Estimate the Automated Time

A well-built iLogic configurator typically reduces design time by 70โ€“90%. Use 80% as a conservative estimate. Apply this to your current monthly spend to calculate the monthly saving.

Step 3 โ€” Calculate Payback Period

Divide the implementation cost by the monthly saving. This gives you the payback period in months. For most manufacturers, payback is achieved within 3โ€“6 months. After that, the saving is pure return.

Beyond the Numbers

The financial ROI is only part of the story. Design automation also reduces errors, improves consistency, frees your engineers for higher-value work, and enables your sales team to generate accurate technical documentation while the client is still on the phone. These benefits are harder to quantify but just as real.

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