Adaptive Systems Return on Investments Calculator

return on investment

Adaptive Systems Return on Investments Calculator

Return on Investment Analysis

Summary: The Return on Investment Calculator is provided to assist you in discovering the potential cost savings of adding automation to your system. This calculator has a comprehensive list to help trigger your thought process, but does not require all fields to be filled out in order to provide you with a Return on Investment calculation.

Instructions: Fill in the appropriate fields with the appropriate cost figures. Once all fields have been entered, press the "Calculate" button at the bottom of the page. All costs and savings numbers will be automatically totaled and a final payback number will be generated. The final Payback number represents the number of months for the automation improvements to pay for itself.

Capital Investment:
List price of robot and control
System hardware
System design and build
Shipping costs
Measurements can include:
IRR
ROI
Simple payback
Taxable depreciation
Tax incentives
Total capital investment $

Savings (based on annual amounts)
Regular wages ($xx.xx/hr x 2000 x people (at 100%)
Overtime wages
Supervisory wages
Employee benefits rate
Hand held tools and safety equipment
Measurements can include:
Interviewing
Hiring
Training
Managing
Reviewing
Terminating
Legal suits
Employee turnover (job satisfaction level for production overview position vs. manual labor as measured by the rate of employee turnover into other position within and outside of the company)
Total personnel savings $

Productivity (based on annual amounts)
Increase in unit output:
Old production level (no formal cycle calculated)
Difference
Percent change
Increase in units (quality yield)
Decrease in rejects (units)
Cost per reject (part only)
Decrease in rejects x cost per reject
Measurements can include:
Piece part labor and materials if repaired
Total cost of investment if scrapped
Total productivity savings $

Ergonomic Savings
Measurements include costs and reduced production time due to employee:
CTD (cumulative trauma disorders) related illnesses
Tendonitis
Tenosynovitis
De Quervian's disease
Ganglion cist
Carpal tunnel syndrome
Cubital tunnel syndrome
Horacic outlet syndrome
MSD (Musculoskeletal Disorders)
Hands and wrists
Elbows
Forearms
Shoulders
Neck
Back
Legs
Feet and toes
Supervisor time
Management time
Human resources group time
Legal claims
Consumer perception
Total ergonomic savings $

Time Savings
Changeover time
Measured by the time that elapses from when the last good part is produced until the first new part is produced following the changeover
Ramp time to volume production
Measured by the time from the first good part produced to the time of full production capability
Total time savings $

Throughput Savings
Throughput increase
Measured by the incremental production potential vs. other production methods
Total throughput improvement $

Productivity increase
Measured by the total revenue produced from shipped parts per hour of labor required to produce
Total productivity increase $

Production consistency
Measured by the total number of parts produced per shift vs. production schedule
Total production improvement $

Warranty Savings
Improved warranty cost
Replacement cost
Customer service cost
Shipping/repair cost
Customer satisfaction (future purchasing reduction cost)
Total improved warranty cost $


Payback = Total Costs / Total Savings		months

Adaptive Systems, L.L.C.

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