This is basic guidance to know How much do Industrial Robots Cost? and when the investment payback?    Our robot calculator tool can help you to have an idea of all the costs involved.  It is not an easy task because every project is unique and it is based on the company’s needs.

Current Cost

Robots are predictable and produce high-quality work. They offer peace-of-mind to the business’s owner.  But, there are concerns about robot cost and the question that always people ask is How much do Industrial Robots cost?

First, you need to know the current labour costs related to manual tasks.  At this stage, the company must have a clear understanding of the robotic system scope they want to carry out by the robots.

The current costs are:

  • Number of employees per shift
  • Number of shifts per day
  • Employee(s) yearly cost
  • Downtime costs
  • Scrap Parts Costs

Robot Cost Saving

The production income is an essential part of the robot ROI calculation value. The cost savings are the difference between your current situation and your potential situation.

Besides, a robot cell investment does not increase income, but rather savings.  Also, remember to find a reliable robot integrator and request a formal quotation. However, before proceeding with the investment, you need to do a risk analysis and ask the robotic integration company to help you with the Robotic ROI.

Formulas to calculate Robotic System ROI

On the calculation formulas, we intend to provide an example to give an idea of the robotic investment vs when the robot will payback.  Therefore, these numbers vary according to equipment required, commissioning & robot installation or current costs.

Current Cost

  • Yearly Cost = 1 (employee) * 2 (shift) * 60,000 (salary & benefits) + 9,000 (downtime) + 10,000 (scrap) = 130,000

Robot Investment

  • Potential Investment = Industrial Robot Cost + EOAT + Turntable + Control Panel + Robot Training + Programming + Commissioning & project management + Cell Guarding + All equipment (if needed) = 65,000

Future Scenario

  • Yearly Cost = 0.5 (employee) * 2 (shift) * 60,000 (salary) + 1,000 (downtime) + 2,000 (scrap) = 63,000

Cost Savings

  • Savings= Yearly Cost (80,000) – Potential Costs + Production Improvements (63,000) = 67,000

Robot Payback

  • ROI = Robot Investment (65,000) / Savings amount (67,000) = Payback [years] = 0.97 years

Robotic System Investment

Second, it’s time to get at least three quotations from robot integration company. Also, the scope document must be handled to the integrator to ensure the quotation is accurate and it is exactly what the company require.

The investment of the robotic system cell must comply with safety elements, and it includes any additional equipment required for the robot application. As an integrator, we recommend investing in good quality components and equipment because they are more reliable.

Element Robotic Investment

  • Industrial Robot – New industrial arm or refurbished robots.  Depend on the company budget.  A reconditioned robot is very reliable, and they can last up to 20 years with a good maintenance routine.
  • Integrated turntable
  • End of arm tooling (gripper, spindles, etc)
  • Robot Control Panel (electrical design, control panel build and testing)
  • Mechanical installation
  • Trajectory robot programming, if needed
  • Robot training, if needed
  • Integration and commissioning costs Cost
  • Cell guarding (including safety devices)

Basic robot systems usually do not include advanced technology, for example, vision systems or complex or multiple control panels.  However, if the company require these or other automated equipment must consult with a robot integrator.

When Robot Investment Payback?

Finally, to know when the investment payback, do simple math, for example, divide the investment by the savings. Usually, the return on investment is within a year (results * 12 months/years), it means after this period, the robot investment will be a profit to the company.

It is all about the calculation of the return on investment for a single robot cell.  If you’re concern about how to make the best use of robots, you may want to consult with an integrator— an integration company that understands how to maximise robot performance, capable of designing the robot cell and selecting the right equipment to optimises the robot tasks.

Now, if you follow the robot calculation correctly, the ROI should be predictable. However, if you want to know more details of the ROI analysis, try our robot calculator.  This useful is helping the manufacturer to analyse all parameters.

Therefore, remember that those who hesitate could fall behind their competitors.

Industrial Automation Turnkey Solutions

Phoenix offers turnkey industrial automation solutions to our customers.  Our vision is full customer satisfaction because we believe in long term relationship, it means we provide customer support during the sale process, during the commissioning and after the sale.

Advantages of Robotic Systems

robot welding system

Future Scenario

It is not necessary to remove the staffs that do the manual operation. The robot performs repetitive tasks and the employees can learn new robotic skills as follows:

  • Operate the industrial robot arm.
  • Programming the robot
  • Employees can concentrate on other value-added tasks like quality control.
  • Maintenance of the robot

Most of the time, the employees are afraid to lose their jobs, but soon they realise the advantages of robotics.  Therefore, our suggestion is to encourage the staffs to keep learning new skills because it opens opportunities for more quality jobs.

Advantages of Robotic Systems

One operator can supervise from 2 to 3 industrial robots depends on tasks of the operator.  Besides, the employee salary and a number of shifts may remain the same.

  • Better quality product
  • Improve delivery time
  • Reduce Scraps
  • Cost Savings
  • Happy customers, employees and employer

Now, is the time to invest in industrial robot because the price had declined in the last years.  Additionally, reconditioned robots have become very popular for those companies with a limited budget

Phoenix provides robotic turnkey solutions to our customers.  We had installed and built a robot cell globally for any types of robotic applications. For example, welding robots, milling robots, painting robots, assembly robots just to mention some of them. Also, we help customers reduce their costs by providing support from the start of the automation and after the commissioning period.

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