How Industrial Robots Capture their ROI

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Return on Investment (ROI) is a metric that is commonly used to justify investing in robotic automation. If you are considering purchasing a FANUC Arcmate 120ic, you will want to know beforehand how valuable of an investment it will be. Calculating the ROI allows buyers to determine if they will be able to see a return on the robot, how long it will take to break even, and the expected cost savings. Most industrial robots deliver their ROI within two years. There are also ways in which robot ROI can be maximized in order to see a faster and larger return.

You may be wondering how it is possible for robotic users to see a return in a relatively short amount of time. Robots are able to capture their ROI through the following ways.

Reduced Costs

The first way robotic users are able to realize their ROI is through reduced costs. Industrial robots can reduce costs in three main areas, which are labor, materials, and utilities. Automating production lines with the ABB 6640 reduces the amount of manual labor needed for manufacturing. Companies reduce costs related to salaries, benefits, workers comp, and overtime. The main cost associated with robots is their initial purchase, after that they are relatively inexpensive to maintain. With workers they may initially seem less expensive than automation, but they will cost more in the long run with continuous expenses that tend to rise every year.

Industrial robots are able to reduce material costs through error mitigation, the elimination of rework, and the conservation of consumables. Robots are highly accurate and programmed for applications. This ensures mistakes are avoided preventing the scrapping and overuse of materials and consumables.

Utility costs can be reduced with the energy efficiency of robots. Newer robots are designed with energy efficient features which has reduced the amount electricity they consume. In addition, all articulated robots whether new or used can operate in dim lighting in the heat or cold, reducing factory utility costs.

Expanded Profit Potential

Industrial robots can expand a company’s profit potential which is another way they deliver their ROI. Profits can be expanded through reduced costs which we just discussed. They can also grow through higher productivity, shorter cycle times, and better product quality. Robots can operate for long hours and without breaks. They also operate at fast speeds. This allows for greater throughput which increases productivity and shortens cycle times. The less time it takes to complete a product, the less it will cost to manufacture. More products can reach more consumers sooner. Better product quality eliminates defects which can inhibit profit growth. Customer satisfaction will increase helping to retain and expand your consumer base.

Multi-Application Capabilities

Robots also capture their ROI through their multi-application capabilities. The FANUC M-20ia can automate several material handling and material removal tasks. This streamlines operations by reducing the amount of labor and equipment needed. It also gives companies greater flexibility with their manufacturing since one robot can be used for multiple tasks. Product changeovers are quicker as equipment changes and employee training are avoided. Robots can be used for multiple projects.

Robots Done Right is the place to start when it comes to used robots. Contact us if you are interested in buying or selling a used robot.