How to Calculate ROI to Justify a Collaborative Robot from Absolute Machine Tools
“Math — nope, not my thing,” says Courtney Ortner, Director of Marketing for Absolute Machine Tools’ A+ Automation Team. “That’s why I’m in marketing! But I’ve got a great automation engineering team that has a to calculate ROI when it comes to a collaborative robot.”
Ortner and Dave Zunis, director of service and applications engineering at Absolute Machine Tools, recently discussed calculating ROI in an SME Media article, “When Work Cells Work for Machine Tools.”
“Customers often ask what a typical ROI for collaborative robots, such as our OB7 cobots from Productive Robotics, and I say that’s easy — it’s typically 6 months,” Ortner said. “But that isn’t necessarily accurate because every shops’ costs are different, depending on the parts they run and geographic location. Six months is typically a good gauge, but when spending hard earned dollars, it’s best to be certain.”
Questions Our A+ Automation Team Asks
So how can the A+ Automation Team help each individual shops understand their particular ROI? It’s easy, by asking a few initial questions such as:
- How are you currently executing the job you want to automate?
- What are the current ergonomics you’re looking to improve?
- Do you have adequate Cap X money for the project or are you running on a budget, and if so, what is it?
- How much do your operator(s) earn?
- What is the cost per employee for any benefits?
- What is the cost per employee for Workers’ Compensation?
- What is your current throughput and what are you ultimately aiming for?
- What is the current cycle time?
- What is the current tack time it takes to complete the job?
Now we can get to work!
Writing the Scope of the Project
Together with the customer, we estimate a solid ROI, take their budget into consideration, and write a “scope” of the project. If these steps are implemented immediately at the beginning of the conversation, then the balance of the project will be a success. This process helps both the customer and Absolute determine the best equipment to meet their ROI and expectations. An accurate scope of the project allows us all to understand the necessary components to make the project a success, otherwise it could be a total disservice to all involved.
“Our goal is to help the customer understand the real true scope so there are no surprises. We deal with customers using automation every day, so it’s our job to ensure the customer is comfortable with all the steps that will encompass a successful automation installation,” said Zunis.
Get Help Determining Potential ROI with a Collaborative Robot
If you are thinking about taking that initial step to introduce automation to your manufacturing processes, contact the experts at Absolute Machine Tools at firstname.lastname@example.org. For more information on collaborative robots and where they have been successful, click here.Click Here to Download the Book “Robot Integration for Machine Shops”