Calculate ROI Net Present Value

Explanation

Use this function to calculate return on investment with the Net Present Value method for the defined Kaizen activity in page Part Cost tab Kaizen Cost.

Prerequisites

This activity has the following prerequisites:

• A kaizen cost plan needs to be defined.
• The NPV return on investment method has to be selected.

System Effects

This activity will calculate the return on investment for the selected line item and evaluate whether it will be approved or not according to the required NPV ratio.

Pages

Part Cost

Activity Diagrams

Kaizen Costing