Measuring the ROI
Within the context of corporate environment, continuous improvement initiatives are integral to of organizational success. Organizations embrace various improvement strategies such as lean manufacturing, to boost efficiency. However, measuring the return on investment of these initiatives continues to be a substantial challenge.
Return on investment is a crucial metric used to assess the effectiveness of any investment. It denotes the gain yielded by an investment versus its cost. For these initiatives, assessing ROI helps organizations assess whether the cost of these initiatives yields notable returns. A effective ROI calculation will provide valuable insights into the cost-effectiveness of these initiatives, allowing organizations to allocate means productively.
Options for ROI measures that an organization employ, depending on the objectives of the continuous improvement initiative.
