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Return on Investment - ROI

ROI Series Part Two: Realizing Your Robotic Automation ROI

If you’re planning to make the leap to robotics, you’re going to find out very quickly that automation isn’t inexpensive. 

You wouldn’t want it to be. You need a high-quality process that’s reliable and safe. However, that initial investment can be overwhelming at first glance. 

That’s why we’re focusing on your return on investment, or what’s known as your robotic automation ROI. We’re here to show you that your ROI on automation will be sizable—and you’ll see your ROI soon after you invest. There’s an industry-proven average ROI of 24 months for robotic systems—and you’ll see other benefits much sooner than that. 

In order to figure out what your automation ROI might be, it’s crucial to consider what your higher profit potential with a robotic system could reasonably be. There are three different considerations that, together, could indicate your potential profit.

Calculating Your Automation ROI Involves These Three Things

It’s easy to hope that you might make more with an automated process. Wondering what information you should plug into your robotic automation ROI calculator? These three factors can help you conceptualize the time and money you’ll save—and the higher output you’ll enjoy. 

1. Higher productive time

A robot works continuously, never getting tired and slowing down or taking breaks. It will consistently hit the same cycle time as it works throughout the day. It does not stop for lunch, it does not talk about the basketball game last night, or the latest show on Netflix. The robot will simply produce more parts than a human can—day in and day out. 

2. Better quality and less scrap

The inherent repeatability of a robotic system allows for less scrap and waste than a person can achieve. It is common for robots to perform between 90%-99% efficiency. Compare this with your efficiency today, and you’ll start to realize what type of ROI may be achievable for you. 

Case Study: Tier 1 automotive drive train manufacturer realized their ROI through quality

One of our customers, a Tier 1 automotive manufacturer, was having significant quality issues with the parts and welds coming off of an old piece of hard automation equipment. The quality problem was so bad that the Nameplate OEM sent their own engineering and quality people to oversee the production of these components and make sure every part was inspected and correct prior to moving to the next process. 

KC Robotics developed a robotics welding system utilizing 2 FANUC Arc Mate 100iC robots with Fronius TPSi 4000 welding systems and a laser seam tracker to find the joint and track any variation in the part and feed it back to the robot in real time. The part is picked up, and manipulated in place by a larger material handling robot. 

This solution not only corrected the initial quality issue of missing the weld joint frequently but fixed other issues they didn’t know they were fighting. These issues included overwelding, joint blowout and minor part warpage due to uneven heat distribution.  Within 2 months of implementing the system there were so few rejected or rework parts being produced that  the Nameplate OEM pulled their people from overseeing and managing the line, and our customer was able to resume a normal part inspection protocol.

3. Higher capacity

Robotic systems have the potential to provide additional revenue from increased production and capacity. Our customers have seen additional capacity and throughput on their equipment from the implementation of robotic automation. They have been able to utilize the freed-up capacity on their machines to secure new work. Utilized properly, the extra capacity can drive your RPA ROI up significantly.

Wondering what you can learn about your ROI—and whether your potential profit margins would make an automation investment pay off? At KC Robotics, we’re happy to do all we can to answer these questions; we’ll run your unique information through our automation ROI calculator and get you the answers you need. Give us a call to speak with a qualified integrator today! 

This is the second piece in a series where we’re discussing Robotics ROI. Last time, we talked about the hidden costs that could be obscuring your current cost of operations. Click here for part 1 of this series.