More on What's Inside the LPKF CapEx Justification Kit for a PCB Milling Machine
If after reading our blog, “How to write an effective business case for purchasing a rapid PCB prototyping machine", you’re ready to start preparing a business case for the acquisition of an LPKF machine for your lab, here is some additional information on what you'll get by downloading our CapEx Justification Kit.
Situational Analysis Section: Alternatives and Risks to Purchasing an LPKF Machine
Alternatives: The main alternative to PCB prototyping in-house with an LPKF machine is to continue outsourcing to your current board house, or find another. You already know the technical advantages of prototyping in-house, but be sure to speak in verifiable financial terms in this section.
If your workload is such that prototyping in-house would financially trounce outsourced prototyping, then you have already won this argument in the best way possible. High custom-design prices, expediting fees, and multiple board revisions can all make prototyping with a board house a costly habit.
Beyond numbers, if time is a big issue for your department, with deadlines frequently pushed back and progress stymied waiting on the board house, mention the speed advantage of prototyping in-house over any board house (should the suggestion be to try a more responsive vendor).
Another alternative to prototyping with an LPKF machine is to fabricate prototypes on another make of PCB prototying machine. If decision makers inquire about this, what follows is some useful information to know about LPKF’s proven expertise in the field of Rapid PCB Prototyping Machines.
LPKF is the world leader in PCB prototying machines, having pioneered the concept and the technology. LPKF machines are German-engineered and offer unmatched performance and ease of use. They’ve been intuitively and specifically designed for the PCB designer. In addition, LPKF is the only company to offer a complete line of complementary prototyping equipment that can help you quickly build an even more robust lab and allow you to go from bare board to fully assembled PCB in just one day if needed. LPKF’s 90 percent retention rate also reflects our unparalleled customer satisfaction.
Risks: The number one concern for management is, essentially, “When will the equipment pay for itself?” If your two to three year ROI is a high number, 100 percent or above, then you can confidently ease management’s concerns about the financial investment by quoting that number here.
Because capital equipment is intended to be a long-term investment, product life is another of management’s concerns, so mentioning that LPKF prototyping machines are noted for their longevity, and citing that many LPKF customers have used their machines for 15 to 20 years will help.
Additionally, LPKF machines require minimal upkeep. Many LPKF users perform their own maintenance, and LPKF’s lifetime product support quells any usage concerns.
Financial Justification Using Sample Value Tables:
The following tables represent sample financial scenarios for shifting outsourced prototyping in-house on an LPKF machine. The figures, which represent the cost to produce 100 double-sided boards over the course of one year, are considered typical and are estimated based on routine customer surveys.
Small Workload
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
| Capital expense | -9000 | |||||
| Operating Costs | -1000 | -1000 | -1000 | -1000 | -1000 | |
| Return | 5000 | 5000 | 5000 | 5000 | 5000 | |
| Net Savings | 4000 | 4000 | 4000 | 4000 | 4000 | |
| Cumulative Total | -9000 | -5000 | -1000 | 3000 | 7000 | 11000 |
Large Workload
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
| Capital expense | -30000 | |||||
| Operating Costs | -12000 | -12000 | -12000 | -12000 | -12000 | |
| Return | 25000 | 25000 | 25000 | 25000 | 25000 | |
| Net Savings | 13000 | 13000 | 13000 | 13000 | 13000 | |
| Cumulative Total | -30000 | -17000 | -4000 | 9000 | 22000 | 35000 |
Get the Customer Survey Infograhic on ROI
Download the CapEx kit and you'll alos get a handy infographic that shows how in a recent survey distributed among LPKF machine owners, 86.5 percent stated their LPKF machine saves them four days or more per project. Of these, 58 percent reported one week or more saved per project. From the same survey, 55 percent of LPKF customers reported increased productivity as a benefit of their LPKF PCB prototyping machine, and 59 percent stated greater project momentum resulted from owning an LPKF machine. These numbers speak volumes, as they ground the aspect of speed in real-world applications. They show how an obvious technical advantage for your department is an undeniable tactical advantage for your company.
Also worthy of note, 41 percent of LPKF customers reported quicker time-to-market results as one of the peripheral benefits of their LPKF machine.
Next steps:
1. Download your copy of our justification kit.
2. Need a little extra support? Our technical sales team is here to help you to quantify your business case with additional real-life case studies and sample formulas, and to answer any of your instrument performance-related questions. Use this form or call us at 1-800-345-LPKF (5753) to get assistance today.
