How do you effectively
measure these returns?
Return On Asset Reliability (ROAR™) is an innovative method of reliably measuring
return on capital investment in
asset management. Utilizing Life Cycle Costing methodology, ROAR™ gives insights on how capital investments impact overall returns. In doing so, ROAR™ substantiates tangible returns obtained from reallocating new asset investment capital and redirecting it into a total reliability offering (an effective asset reliability system).
The application of ROAR™ modeling can be utilized on many levels: Enterprise, Business Unit, Plant, Process, System, Asset, Component, and Failure Mode. At the Enterprise level, ROAR™ allows us to compare a strategy of historical capital investment and its impact on Return on Assets (ROA) versus a strategy that includes investing a percentage of the earmarked non-base capital dollars on asset reliability.
The ROAR™ modeling process has shown that virtually any company can substantially improve their (ROA) by investing in the reliability of their existing assets.
- Low-End ROAR™ (1:1) shows 34% NPV improvement over Capital Alone
- Average ROAR™ (4:1) shows 202% NPV improvement over Capital Alone
What methods and tools are available
to support the ROAR™ model?
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