Automation investment decisions are usually reduced to one number: the payback period. A realistic calculation protects you from over-optimistic output assumptions.
The basic formula
Payback period equals total investment divided by annual net saving. Annual net saving equals labor cost avoided, plus quality gain, minus new operating cost.
Cost items buyers often forget
- Foundation work and floor loading reinforcement
- Power supply upgrade and cable routing
- Compressed air system capacity
- Safety fencing, light curtains and validation
- Freight, import duty and customs clearance
- Installation travel cost for supplier engineers
- Operator training and spare parts stock for the first year
Use a conservative output assumption
Rate the line at 80 percent of the simulated cycle time for the first three months. Changeover, minor stoppages and material variation reduce the practical output. A payback calculation based on peak speed will disappoint you in the first quarter.
A typical range
For a single robot palletizing cell replacing two to three operators per shift, the payback period commonly falls between 9 and 18 months depending on local labor cost and the number of shifts. High speed delta sorting lines in food plants often reach a shorter period because they replace more positions per line.
Send us your current headcount, shift pattern and output. We will return an investment estimate with the cost items listed above included, so you can compare quotations on the same basis.
