AI & Digital Manufacturing Analytics worked example

Automated Root Cause Savings at 81% automated root-cause capture share: a worked example

Push automated root-cause capture share up to 81% and the picture changes. This example computes every intermediate figure at that operating point. a process or quality manager needs to estimate savings from faster root-cause investigations

The inputs for this scenario

  • Root-cause investigation hours avoided: 1,550 hr / yr (unchanged)
  • Loaded engineering or quality rate: 78 $ / hr (unchanged)
  • Automated root-cause capture share: 81 % (raised for this scenario; the documented default is 70)
  • Fixed RCA analytics cost: -18,000 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Captured investigation labor savings = investigation hours avoided × loaded rate × capture share) to the inputs above produces each figure below.
  • At this operating point the engine returns 97,929 $ savings for net automated root-cause savings, the number this scenario is built around.
  • At this operating point the engine returns 63.18 $ / piece for loaded investigation labor rate.
  • At this operating point the engine returns 97,929 $ for captured investigation labor savings.
  • At this operating point the engine returns 0 $ for fixed rca analytics cost.

How this compares with the baseline

  • Against the tool's baseline example, where automated root-cause capture share sits at 70% and the headline result is 84,630 $ savings, this scenario comes in 15.71% above the baseline at 97,929 $ savings.
  • It computes net annual savings from automated root-cause analysis by valuing avoided investigation hours at a loaded rate, scaled by capture share, minus fixed analytics cost. The value of this scenario is the size of the gap it exposes: that gap, priced out over a year, is the budget you can justify spending to close it.

Results at a glance

  • Net automated root-cause savings: 97,929 $ savings (headline result)
  • Loaded investigation labor rate: 63.18 $ / piece
  • Captured investigation labor savings: 97,929 $
  • Fixed RCA analytics cost: 0 $

Run it with your numbers

  • Every input above is editable in the live Automated Root Cause Savings calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.