ROI of INDUSTRY 5.0 projects
INDUSTRY 5.0 is based on the principles of systematic waste prevention, INDUSTRIAL UPCYCLING. The calculation of ROI is part of every single project. It is usually not the length of ROI which decides about the realization of the project, but the fact, that no capital investment delivers higher profitability.
In any of the realized projects was the ROI longer than 6 months
75% have it shorter than 3 months
40% apply ZERO ROI
5% reach REVERSE ROI
According to WIKIPEDIA, ROI is defined as:
“ Return on investment (ROI) is a ratio between net profit (over a period) and cost of investment (resulting from an investment of some resources at a point in time)”
This is clear and understandable. I have to invest to get money (investment) back to generate profit after.
How ZERO ROI and REVERSE ROI works?
INDUSTRY 5.0 is based on systematic waste prevention, which means in other words that INDUSTRY 5.0 is entering the wasteful environment where waste is equal to regular growing expenses.
ZERO ROI means, not investment needed to achieve net profit
REVERSE ROI means, investment has been already done in the past, the solution exists, but it is not utilized the right way
The success of INDUSTRY 5.0 is based on the fact that it is sustainable in the material so as economical level.
It utilizes the ON-THE-GROUND-MINES to gain the material sustainability
It changes COST center into a PROFIT center
We call this the prevention of process waste
The big advantage is, that the WASTE MANAGEMENT consumes more being hungry for never-ending profit which makes the change much more simpler for already the BLACK ZERO means in many projects (hospital hazardous waste, EPS, and other) means savings worth millions a month.
In the end, I would like to pint out that it is not true that companies generating for example only ferrous and non-ferrous waste out of own production can not benefit from the introduction and implementation of INDUSTRY 5.0 principles. Despite the fact they “produce” valuable commodity, many waste companies prioritize only one's own profit and let their client suffer from the lack of knowledge and information that the company can through modification of the system generate much more valuable material and profit more.
Additionally, there is a possibility not to treat many items as waste, but production surplus, which delivers profitability that can boost up profit 5–10 times
There are many similar examples so if you like the way, consider to become part of INDUSTRY 5.0 because the next who benefits from ZERO ROI can be your company.