Calculate Return of investment (ROI) and Payback Period (PBP) are among the first thing to do to justify the investment on any automation project. When the ROI show encouraging result, it's the time to dive deeper into it and test the robot to know whether it's working well on your production line. This blog will show you how this ROI calculator works.
The formula use to calculate ROI and PBP are unique for every plant and equipment to purchase. In this case, we take the following assumptions;
Investment Cost
This calculator take consideration of the total cost to implement a Hench Cobot Palletizer. The cost involved include
- Robot cost,
- Installation cost
- Yearly maintainences
- Utility cost.
- Financial cost are not included
Net saving and expenses for FMCG and F&B manufacturers
There are saving as well as new operating expenses will inccured when implement robots. For example, Hench Cobot Palletizer able to reduce unskilled labour headcount up to 3 persons. Meanwhile it needs at least one machine operator to handle the robot and pallet during changeover. However, this machine operator will have plenty of time and should be able to handled multiple robots.
The benefit includes;
- Saving from hiring unskilled workers
- Increased productivity due to faster cycle time of cobot palletizer that meet the speed of existing machine.
- Increased output due to no rest time and break
- Doesn't required backup labour
- Saving indirect cost such as accomodation, transport cost, medical fee per year
The losses includes;
- Hired machine operators.
- Increased utility bills due to usage of electricity and compressed air
- Maintainence cost
All the factors above have been taken consideration on this calculator.
Data Required
Number of labour per shift - Input how many workers are need doing the palletizing process for one shift.
Labour Annual Salary (RM) - Average workers salary per person per year
Labout Annual Benefit (RM) - Benefit such as bonus, food, accomodation, transport cost per year
Number of shift per day - Daily shift
Number of Backup labour - This labour is hired as backup due to inconsistent attendent of other workers. If your production did not have back up labour, input the value as zero.
Total hours for rest time and break (hours/day) - Total hours production in a day that need to stop for prayer, lunch, dinner etc. If production stop only on Friday prayers, then divided the time with working days per weeks.
Machine operator annual salary (RM) - Average workers salary per person per year for person have enough skills to operate palletizing robot. Salary for operator is usually higher than unskilled labour.
Machine operator annual benefits (RM) - Benefit such as bonus, food, accomodation, medication, transport cost per year
Current packages produces annually - Total number of carton boxes produces for a year.
Profit per carton (RM) - Estimated average profit obtained from a box of product that produced on this process.
Maximum speed of the machine (cartons/ minutes) - The maximum speed of the machine that being used before the boxes being stack on a pallet. Usually this machine is the packaging machine or case packing machine.
Production hours per day (hours) - The hours your production will run in a day
Production days per year (days) - The days your production will run in a year
How to interpret your ROI results
Return on Investment (ROI) figure output from the calculation indicate the percentage of investment you earn back from using the cobot palletizer in one year.
Payback Period (PBP) figure indicate how many years it takes to completely earn back the money you invested on this cobot palletizer.
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