Robotics Roundup: ROI Calculators

The question of whether to automate faces more organizations today than ever before. As the number of business processes for which robots are a viable alternative to human labor increases, decision-makers are being forced to weigh the costs and benefits of mechanization. The dynamics of such a decision can be complex. In business terms, estimating the return on investment (ROI) a robotic system might bring is the most important step management can take before making the switch. Fortunately, there are various free tools available that can deliver some analytical clarity. The ROI calculators outlined below can help reduce automation to its most important components—dollars and cents.

Yaskawa Motoman developed a calculator to help potential clients considering a switch to its robotic welding system estimate ROI. With that said, its features have the potential to help managers making a decision about various automated processes. A broad spectrum of inputs—including current annualized labor costs, efficiency increases and scrap savings—allows for an individualized ROI estimate that companies can use to decide what’s right for them.

Another well-rounded tool for calculating ROI has been made available on Robotics.org. This system was not built with any one industry or process in mind, so users have a high level of autonomy in manipulating variables to suit their needs. One important benefit of this tool is that it has an input for total system cost, which allows users easy access to a crucial figure in this type of analysis: the breakeven point.

Perhaps the most user-friendly of all the calculators on this list, ABB’s tool is built with specific applications in mind. What separates it from other options is the diversity of applications for which it will calculate ROI. Users can select processes across a spectrum of business needs, from arc welding and injection molding to picking and packing. Once an application is chosen, the calculator funnels users to the required inputs.

This option is likely the most robust of the group. To that point, it requires a download. However, potential clients who want to look at automation from different angles will find it a helpful tool for ROI analysis. Not only does it emphasize breakeven points in years, months or even days, it also boosts the accuracy of that calculation by weighing complete situations—including the detailed costs of robotic installations.

RobotWorx has designed an ROI calculator that is both intuitive to use and clean to look at. All the inputs are on a single page. The drawback of this model is that it’s somewhat less customizable than the other options on this list. It also plugs in some calculations specific to RobotWorx systems whether the user likes it or not. However, it does boast one significant advantage: an input for financing. Given the high up-front cost of automation, calculating the breakeven point, including interest, is useful and realistic.

Another option requiring a download, this tool is less nuanced than Robotiq’s. It emphasizes breakeven point more heavily than others—that metric is the calculator’s primary target. If more specificity is desired, users can contact UR’s engineers through the platform in order to pin down the costs associated with specific systems.

The final resource we’ll list here is the only one that is not a true calculator. Instead, it is an invaluable article that outlines the steps managers need to take in order to determine whether taking a process robotic is the right move. It lays out a basic ROI calculation that covers a broad spectrum of scenarios and verbally introduces the reader to key factors that influence overall return. The ROI formula itself is relatively basic, but the information laid out is illuminating. If your organization is considering making its first investment in robotics, read this article. It puts into concrete, easily digestible terms what an ROI analysis of automating should look like—and forces the reader to consider the costs and benefits.

ROI Critical for Successful Automation Projects

It’s no secret that robotic systems are reshaping the way manufacturers produce, distribute and compete. As the costs associated with implementation continue to fall, these systems will become more accessible to companies of all sizes and budgets. With that said, automation is not a decision that can be made lightly. It’s a high-leverage proposition in virtually every case. Calculating the true savings these systems are likely to offer and sizing those numbers up against the bottom line is a necessary step to guarantee responsible growth. ROI calculators are a valuable tool for any decision-maker looking to bring innovation to their processes without compromising their near-term solvency.

For more on integrating industrual robots, check out Integrating Industrial Automation: What You Need to Know.