<p style="text-align:justify"><span style="font-size:14px">A typical, single robot cell is ?30,00,000 plus or minus 50%.&nbsp; This is an order of magnitude estimate and will vary depending on the complexity of the process, but generally, most single-robot systems will fall into this cost range.</span></p>

<p style="text-align:justify"><strong><span style="font-size:14px">This will include:</span></strong></p>

<ul>
	<li style="text-align:justify"><span style="font-size:14px">Mid-sized robot</span></li>
	<li style="text-align:justify"><span style="font-size:14px">Robot end-of-arm-tooling or gripper</span></li>
	<li style="text-align:justify"><span style="font-size:14px">Control panel including PLC, operator interface screen (HMI), safety circuits, motor starters, and the like</span></li>
	<li style="text-align:justify"><span style="font-size:14px">Cell guarding</span></li>
	<li style="text-align:justify"><span style="font-size:14px">Customized engineering for the system to complete the desired process</span></li>
	<li style="text-align:justify"><span style="font-size:14px">Some auxiliary equipment, such as conveyors or deburring equipment</span></li>
	<li style="text-align:justify"><span style="font-size:14px">Fabrication, assembly, setup, and runoff at the system integrator&rsquo;s facility</span></li>
	<li style="text-align:justify"><span style="font-size:14px">Shipping to the site</span></li>
	<li style="text-align:justify"><span style="font-size:14px">Rigging and installation</span></li>
	<li style="text-align:justify"><span style="font-size:14px">Integration with your existing equipment, and</span></li>
	<li style="text-align:justify"><span style="font-size:14px">System-specific operator and maintenance training.</span></li>
</ul>

<p style="text-align:justify">&nbsp;</p>

<p style="text-align:justify"><span style="font-size:14px">Any ROI between 12 months and 36 months is a no-brainer. At a minimum, if you have more than two shifts of operation and all-in labour costs of ?2,45,000($35,000) per person, there&rsquo;s a strong business case to look at automation.</span></p>

<p style="text-align:justify"><span style="font-size:14px">Here is a detailed calculation template to determine how long it will take to pay off your robotic investment. Please recognize that this should be considered as an estimation and not a precise calculation. To increase comprehension, an example will be used for each step of the analysis:</span></p>

<p style="text-align:justify"><strong><span style="font-size:14px">Baselines:</span></strong></p>

<p style="text-align:justify"><span style="font-size:14px">Baselines are actual data from the production process. In this case, the costs are related to the employee operating the machine or implementing the current or potential robotic application. In addition, all the costs related to using the machine are included.&nbsp;</span></p>

<ul>
	<li style="text-align:justify"><span style="font-size:14px">Yearly Cost = Employee [unit] * Shift [unit] * Salary [?] + Downtime [?] + Scrap [?] + Jig [?]</span></li>
	<li style="text-align:justify"><span style="font-size:14px">Number of employees on a shift [Unit]</span></li>
	<li style="text-align:justify"><span style="font-size:14px">Number of shifts per day [Unit]</span></li>
	<li style="text-align:justify"><span style="font-size:14px">Employee yearly salary and benefits [?]</span></li>
	<li style="text-align:justify"><span style="font-size:14px">Cost related to downtime [?]</span></li>
	<li style="text-align:justify"><span style="font-size:14px">Cost related to scrap parts [?]</span></li>
	<li style="text-align:justify"><span style="font-size:14px">Cost related to jig or process enhancements [?]</span></li>
</ul>

<p style="text-align:justify"><span style="font-size:14px">Example: If you want to analyze the situation of a single machine being fed by a robot, you will look at the data for this very machine. So there is 1 operator, working 40 hours per week at a cost of about ?3,50,000($50,000) yearly. The machine is fed on two different shifts. In this case, the process cost ?52,500($7,500) in downtime, ?35,000($5,000) in scrap parts and ?52,500($7,500) in jig and process improvement.&nbsp;</span></p>

<p style="text-align:justify"><span style="font-size:14px">Yearly Cost = 1 (employee) * 2 (shift) * ?3,50,000($50,000) (salary) +&nbsp; ?52,500($7,500) (downtime) + ?70,000($10,000) (scrap) + ?52,500($7,500) (jig)</span></p>

<p style="text-align:justify"><span style="font-size:14px">Yearly Cost =?8,75,000 ($125,000)&nbsp;</span></p>

<p style="text-align:justify"><strong><span style="font-size:14px">Investment:</span></strong></p>

<p style="text-align:justify"><span style="font-size:14px">All the different peripherals for the robotic cell are included in the investment. In addition to the basic investment, there are costs related to transportation, taxes, and integration. A low starting investment is desirable, but so is a high degree of quality. The general rule is that a high-quality robotic cell is more reliable and requires less maintenance.</span></p>

<ul>
	<li style="text-align:justify"><span style="font-size:14px">Robot [?]</span></li>
	<li style="text-align:justify"><span style="font-size:14px">Gripper [?]</span></li>
	<li style="text-align:justify"><span style="font-size:14px">Parts presentation fixture [?]</span></li>
	<li style="text-align:justify"><span style="font-size:14px">Vision system [?]</span></li>
	<li style="text-align:justify"><span style="font-size:14px">Monitoring system [?]</span></li>
	<li style="text-align:justify"><span style="font-size:14px">Other peripherals (Force-torque sensor, automatic measurement system, automatic door, automatic chuck, etc.) [?]</span></li>
	<li style="text-align:justify"><span style="font-size:14px">Cleaning system [?]</span></li>
	<li style="text-align:justify"><span style="font-size:14px">Physical barriers [?]</span></li>
	<li style="text-align:justify"><span style="font-size:14px">Robot to machine interface [?]</span></li>
	<li style="text-align:justify"><span style="font-size:14px">Integration [?]</span></li>
	<li style="text-align:justify"><span style="font-size:14px">Taxes, transportation fees [?]</span></li>
</ul>

<p style="text-align:justify"><span style="font-size:14px">Starting Investment = Robot [?] + Gripper [?] + Vision system [?] + ...</span></p>

<p style="text-align:justify"><span style="font-size:14px">* Make sure to do a proper risk assessment when integrating a robot into a workshop. The analysis should be done in accordance with ISO-10218. In the case of an industrial robot, it will require fencing, external safety devices and it will occupy more space.&nbsp;</span></p>

<p style="text-align:justify"><span style="font-size:14px">Example: This case will be using a demo Robot that costs about ?2,45,000($35,000), a Gripper worth ?33,600($4,800) with a simple part presentation fixture of ?7000($1,000). A cleaning device ?5,600($800) some visual safety devices to prevent contact with the robot ?3,500($500). Interfacing the robot to the machine will require an extra ?7000($1,000) and the integration price will be about ?14,000($2,000) plus the applicable taxes and transportation fees which will ramp up to about ?28,000($4,000).&nbsp;</span></p>

<p style="text-align:justify"><span style="font-size:14px">Starting Investment = ?3,43,700 ($49,100)</span></p>

<p style="text-align:justify"><strong><span style="font-size:14px">Potential Scenario:</span></strong></p>

<p style="text-align:justify"><span style="font-size:14px">An estimation of the future is always possible. A professional who has never dealt with robotic integration might find it hard to evaluate this scenario if they haven&#39;t experienced it before. There are some guidelines, however, that can help you figure out this situation using the same data as the baselines.</span></p>

<p style="text-align:justify"><span style="font-size:14px">According to this rule of thumb, an employee who was operating a machine or a working post will not be fully removed. Robots are there to perform redundant tasks so that workers can do more important work or to focus on more value-added tasks, such as quality control. As a result, one employee can run several machines at the same time, instead of only one. The number of shifts and salary of employees will remain the same. Depending on the process improvements, different costs can apply.&nbsp;</span></p>

<ul>
	<li style="text-align:justify"><span style="font-size:14px">Number of employees on a shift [Unit]</span></li>
	<li style="text-align:justify"><span style="font-size:14px">Number of shifts per day [Unit]</span></li>
	<li style="text-align:justify"><span style="font-size:14px">Employee yearly salary [?]</span></li>
	<li style="text-align:justify"><span style="font-size:14px">Cost related to downtime [?]</span></li>
	<li style="text-align:justify"><span style="font-size:14px">Cost related to scrap parts [?]</span></li>
	<li style="text-align:justify"><span style="font-size:14px">Cost related to jig or process enhancements [?]</span></li>
</ul>

<p style="text-align:justify"><span style="font-size:14px">Potential Scenario = Employee [Unit] * Shift [Unit] * Salary [?] + Downtime [?] + Scrap [?] + Jig [?]</span></p>

<p style="text-align:justify"><span style="font-size:14px">Production enhancement refers to forecasts of greater production over the next several years. As you introduce a robot to your plant, you may soon raise production. To accelerate the calculation process, you should measure the enhancement in INR instead of the number of parts.&nbsp;</span></p>

<p style="text-align:justify"><span style="font-size:14px">Example: The same operator will be using 2 different machines. So there is 0.5 an operator, working 40 hours per week at a cost of about ?3,50,000($50,000) yearly. The machine is fed on two different shifts. In the potential scenario, the process costs ?7,000($1,000) in downtime, ?14,000($2,000) in scrap parts and ?70,000($10,000) in jig and process improvements.</span></p>

<p style="text-align:justify"><span style="font-size:14px">Yearly Cost = 0.5 (employee) * 2 (shift) * ?3,50,000($50,000)(salary) + ?7,000($1,000)(downtime) + ?14,000($2,000) (scrap) +?70,000($10,000) (jig)</span></p>

<p style="text-align:justify"><span style="font-size:14px">Yearly Cost = ?4,41,000($63,000)&nbsp;</span></p>

<p style="text-align:justify"><span style="font-size:14px">In this situation we want to analyze the ROI without any production enhancement, so the price related to it would be ?0 ($0).&nbsp;</span></p>

<p style="text-align:justify"><strong><span style="font-size:14px">Savings:</span></strong></p>

<p style="text-align:justify"><span style="font-size:14px">The savings are the difference between your actual situation and your potential situation. This is calculated by the (current yearly cost - the potential cost + the production enhancement). This gives you the amount of money that you are saving per year. In a classic ROI calculation, your production income would be considered the calculation. Since introducing a robot cell does not generate increased income, but rather savings, this is the data that will be used.&nbsp;</span></p>

<p style="text-align:justify"><span style="font-size:14px">Savings= Yearly Cost [?] - Potential Scenario [?] + Production Enhancements [?]</span></p>

<p style="text-align:justify"><span style="font-size:14px">Example: Savings = ?8,75,000($125,000) &nbsp;- ?4,41,000($63,000) +?0 ($0)</span></p>

<p style="text-align:justify"><span style="font-size:14px">Savings = ?4,34,000($62,000)</span></p>

<p style="text-align:justify"><strong><span style="font-size:14px">R.O.I. :</span></strong></p>

<p style="text-align:justify"><span style="font-size:14px">Finally, to know how long it&#39;s going to take for your investment to pay back, you only need to divide the investment by the savings.&nbsp;</span></p>

<p style="text-align:justify"><span style="font-size:14px">ROI = Investment [?] / Savings [?] = Moment the investment is repaid [years]</span></p>

<p style="text-align:justify"><span style="font-size:14px">Example: ROI= ?3,43,700 ($49,100) / ?4,34,000($62,000) = 0.79 i.e 0.8 years</span></p>

<p style="text-align:justify"><span style="font-size:14px">Since the return on investment is done within a year, you can calculate this into months (0.8 years * 12 months/years) = 9.6 months. After 9.6 months your return for the robot investment can be added to your bottom line as profit. Now, this is why investing in robots is crucial, increasing profits and keeping employment at home.&nbsp;</span></p>

<p>&nbsp;</p>