Because it’s a larger (and often longer-term investment) you might meet some resistance to the costs of modernization. And you’re not alone. Those who manage the numbers can fall on the side of upgrading because they have not quantified the benefits of modernization.
There’s a three-step strategy for determining what’s right for your operations that also helps you justify the investment:
- Collect information and assess your current state. Inspect the application, machine, line or plant through an installed base evaluation (IBE), which is a cost effective way to identify obsolesce risks
- Analyze. Determine where you can make the biggest impact. Identify your most critical equipment, biggest risks and options
- Plan. Define your scope based the application requirements, opportunities for productivity improvements, schedule, budget and ROI based on long-term business objectives. A Front End Engineering Design (FEED) can help define answers to these questions and plays a critical role in preparing for a successful project
In fact, benchmark studies show benefits up to 30 percent reduced cost and shorter project execution time when a FEED study is performed. If capital investments budgets are limited, a FEED can be used to plan your modernization project into phases to reduce initial cash flow, maximize productivity and minimize risk.