Venkannah new tooling and machines faster output from

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Unformatted text preview: RS Cost Avoidance - S. Venkannah new tooling and machines faster output from automation lower operating expenses robot has higher capital investment but lower operating costs safety requirements - manual operations usually require expensive safety systems October 2006 MECH 4041 Robotics Technology COST REDUCTION AND SAVINGS Payback period or return on investment is a guide to amount saved Payback , P = I L-E P in years I = total investment of robot system L = total annual labour savings E – expense of robot upkeep. RETURN ON INVESTMENT (ROI): Plot ROI against hours worked per day for a range of likely hourly rates Consider a robot replacing one manual operator. S. Venkannah October 2006 MECH 4041 Robotics Technology ROBOT IMPLEMENTATION AND COST ANALYSIS. ITEM NO. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17a 17b 18 19 20 21 30a 30b 30c 40a 40b 40c 40d 40e 50 60 70 80 ITEM EXPENDITURE Robot and accessories cost Installation costs Re-arrangement , space costs Sub total Special tooling costs (jigs and fixtures) Total expenditure COST OPERATING SAVINGS (COSTS) Assume 10 years lifetime Direct labour – man hour Hr Direct labour costs Indirect labour – man hours Hr Indirect labour costs Operating supplies Maintenance and repair Launching costs Taxes and insurance, etc…. Special tool requirements in future Depreciation Other savings Other costs Profit before taxes (item 8 –( items 10-16) + item 17a – item 17b) Profit after taxes (say 60% of item 18) Investment of base (100% of item 6 or x% of item 6) Return on investment ( (item 19 / item 20) * 100) RETURN ON INVESTMENT Annual labour savings (item 8) Other savings (item 17a) Total annual savings (items 30a + 30b) Annual operating costs Maintenance (item 12) Launching (item 13) Taxes and insurance (item 14) Total annual costs (items 40b + 40c + 40d) Net annual savings (item30c – 40e) Net annual savings after taxes (x% of item 50) Depreciation tax allowance (x% of item 16) Total annual net future savings (items 60 + 70) S. Venkannah October 2006 MECH 4041 Robotics Technology CASE STUDY OF AN ACTUAL ROBOT INSTALLATION Automatic assembly of pneumatic cylinders and valves Planning Introduction o company details – who is it? o What it manufactures and for whom o Range of products o Introduction of automation or not o Why automation being considered o Which product might be considered and briefly explain why o Cost, quality, integration with computer scheduling Investigation, feasibility study and justification Investigation o Why it’s possible to consider product for automation o Describe features o Which product is chosen o Changes of design for assembly o Long or short term production o Can it be done o Rate of production – throughput o Would other assemblies in same category be chosen o Describe sequence of assembly o Programme of work, timescale for ma...
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This document was uploaded on 03/12/2014 for the course MECHANICAL 214 at University of Manchester.

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