Simply put, ROI is the ratio of what savings/additional revenue streams were realized because of the initiative divided by what was invested in that initiative over the same time period. If done correctly, a reasonable best case and a reasonable worst case ROI will be constructed to justify the initiative. The calculation will factor in inflation and it will be constructed over an anticipated life of the initiative (7 years is typical calculation period). It basically boils down to a Net Present Value (NPV) calculation from your days in Engineering Economics. 

In a 1997 benchmark survey Top Quartile Paper Mills claimed an average ROI of 19:1, while Chemical Processing came in at 16:1, and Steel at 18:1 for their maintenance and reliability initiatives. 

The purpose of doing a best and a worst case is that the worst case begins to explain that the initiative is at least a viable investment, the best case shows the potential if all the benefits are reaped. Is it possible for a plant to show a negative ROI? The answer is absolutely YES. 

We will hold the explanation for after the discussions of the successful elements, costs and benefits.

ELEMENTS OF TEAM: There are many required elements in a complete TEAM initiative. (See Attachment I for TEAM MAP)  Every one of these elements must be deployed and functioning well at the facility to reap a significant ROI.  Each of these elements can be grouped into what we call the  Diamond Approach to Reliability^™.  

The 4 quadrants of the diamond are: