{"id":162,"date":"2021-07-20T09:23:48","date_gmt":"2021-07-20T09:23:48","guid":{"rendered":"https:\/\/robotics24.net\/blog\/?p=162"},"modified":"2023-06-22T09:06:33","modified_gmt":"2023-06-22T09:06:33","slug":"calculate-cost-of-robotic-cell","status":"publish","type":"post","link":"https:\/\/robotics24.net\/blog\/calculate-cost-of-robotic-cell\/","title":{"rendered":"\ud83d\udcb0 How to calculate cost of a robotic cell? The real ROI + Tools"},"content":{"rendered":"\n<p>The basic <strong>formula <\/strong>for calculating the ROI percentage = (Net Profit \/ Invested Capital) x 100.<br>In practice, however, it is more complex than a mathematical formula: <strong>many factors<\/strong> have to be taken into consideration.<br>Thus determining the <strong>real gains<\/strong> in both the short and long term.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>The calculation of the <strong>return on investment<\/strong> (ROI) of robots is generally related to several criteria:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Initial robot cost<\/li>\n\n\n\n<li>Ongoing costs<\/li>\n\n\n\n<li>Labor cost savings<\/li>\n\n\n\n<li>Increased productivity<\/li>\n\n\n\n<li>Tax incentives<\/li>\n\n\n\n<li>Robot lifetime<\/li>\n<\/ol>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Find all values for automation ROI<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Determine current costs<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Cost of <strong>employees <\/strong>to be replaced (per year)<\/li>\n\n\n\n<li>Cost of <strong>hiring<\/strong>, training, holidays and strikes of employees (per year)<\/li>\n\n\n\n<li>Cost of production <strong>errors <\/strong>or rejects (per year)<\/li>\n\n\n\n<li>Cost of <strong>quality <\/strong>control and rework (per year)<\/li>\n\n\n\n<li>Cost of keeping <strong>safety <\/strong>high (per year)<\/li>\n\n\n\n<li>Cost of <strong>accidents <\/strong>and workers&#8217; compensation (probable)<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Determining the costs of a robotic workstation<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Cost of one or more<strong> robotics cell <\/strong>(one-off)<\/li>\n\n\n\n<li>Cost of service and <strong>maintenance <\/strong>(per year)<\/li>\n\n\n\n<li>Cost of <strong>wearing <\/strong>parts (per year)<\/li>\n\n\n\n<li>Cost of <strong>electricity <\/strong>used by machines (per year)<\/li>\n\n\n\n<li>Cost of <strong>personnel <\/strong>to operate the systems (per year)<\/li>\n\n\n\n<li>Cost of unplanned <strong>failures <\/strong>(probable)<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Determine additional earnings<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Increase in <strong>production <\/strong>(per year)<\/li>\n\n\n\n<li>Increase in customer <strong>loyalty <\/strong>and retention (probable)<\/li>\n\n\n\n<li>Increased <strong>safety <\/strong>for staff, fewer accidents (probable)<\/li>\n\n\n\n<li>Increased products <strong>quality <\/strong>(probable)<\/li>\n\n\n\n<li>Increase in <strong>types <\/strong>of processing, such as extreme temperatures (possible)<\/li>\n\n\n\n<li><strong>Tax benefits<\/strong> e.g. for Industry 4.0 (one-off)<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<p>Usually the initial cost of a robot implementation is <strong>amortised <\/strong>in about <strong>1 year<\/strong>.<\/p>\n\n\n\n<p>To get a fair estimate of <strong>profitability<\/strong>, it should be calculated over a horizon of 5 to 10 years, as an industrial robot works on average for 15 years, but with routine and predictive <strong>maintenance <\/strong>it can be up to <strong>30 years<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Online tools ROI Robot Calculator<\/h2>\n\n\n\n<p>If you want to quickly calculate the Return On Investment of a robotized cells, you can use these online tools:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Quick Robotics ROI Calculator:<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.automate.org\/robotics-roi-calculator\" target=\"_blank\" rel=\"noreferrer noopener\">A3 Robotics<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/phoenixrobotic.com\/roi-robotic-system\" target=\"_blank\" rel=\"noreferrer noopener\">Phoenix Robotic<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/unchainedrobotics.de\/en\/roi-calculator\/\" target=\"_blank\" rel=\"noreferrer noopener\">Unchained Robotics<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.robots.com\/roi\" target=\"_blank\" rel=\"noreferrer noopener\">RobotWorx<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/yaskawapartners.com\/robotic-system-savings-calculator\/\" target=\"_blank\" rel=\"noreferrer noopener\">Yaskawa<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.quantumrobotics.com.au\/roi-calculator\/\" target=\"_blank\" rel=\"noreferrer noopener\">Quantum Robotics<\/a><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Advanced Robotics ROI Calculator:<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/robotiq.com\/why-robots\/roi-calculator\" target=\"_blank\" rel=\"noreferrer noopener\">Robotiq<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.geku.co.uk\/return-of-investment-calculator\/\" target=\"_blank\" rel=\"noreferrer noopener\">Geku Automation<\/a><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Cobot ROI Calculator:<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/robotics.omron.com\/collaborativerobots\/roi-calculator\/\" target=\"_blank\" rel=\"noreferrer noopener\">Omron<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/cobotnation.com\/roi-calculator\/\" target=\"_blank\" rel=\"noreferrer noopener\">Cobot Nation<\/a><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Brand Robotics ROI Calculator:<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/roi-calculator.fanuc.eu\/landing\" target=\"_blank\" rel=\"noreferrer noopener\">Fanuc ROI Calculator<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.mobile-industrial-robots.com\/roi-calculator-configuration\/\" target=\"_blank\" rel=\"noreferrer noopener\">MIR &#8211; Mobile Industrial Robots<\/a> <\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Excel Download Robotics ROI Calculator:<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/blog.robotiq.com\/lean-robotics-roi-calculator\" target=\"_blank\" rel=\"noreferrer noopener\">Robotiq<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.wmh-robotics.co.uk\/why-cobots\/calculate-your-roi\/\" target=\"_blank\" rel=\"noreferrer noopener\">WMH Robotics<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/info.msitec.com\/robot-roi-calculator\" target=\"_blank\" rel=\"noopener\">MSI Tec<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.balyo.com\/success\/your-savings\" target=\"_blank\" rel=\"noreferrer noopener\">Balyo<\/a><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">A big problem<\/h2>\n\n\n\n<p>The high initial cost <strong>seems<\/strong> to be a disadvantage, but the real problem is that robotic automation, even though it has been used in industry for more than 40 years, is still seen as an uncertain investment.<\/p>\n\n\n\n<p>However, when all the <strong>risks and benefits<\/strong> are weighed up, as described above, there is no doubt about the effectiveness of robots.<\/p>\n\n\n\n<p>Thanks to the increasing demand for automation and improved hardware, the <strong>average ROI<\/strong> for robotising a process is <strong>increasingly high<\/strong>.<\/p>\n\n\n\n<p>In addition, to reduce the initial investment, one can opt for <a href=\"https:\/\/robotics24.net\/\" target=\"_blank\" rel=\"noreferrer noopener\">used or reconditioned robots<\/a>, which can have a good life expectancy.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Still in doubt?<\/h2>\n\n\n\n<p>Contact a system integrator who can answer your <strong>questions <\/strong>and provide you with a more accurate quote.<\/p>\n\n\n\n<p>Or ask our <a href=\"https:\/\/community.robotics24.net\/\" target=\"_blank\" rel=\"noreferrer noopener\">robotics and automation community<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Finding the true gain of a robotic system even with easy and free tools<\/p>\n","protected":false},"author":2,"featured_media":617,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"off","_et_pb_old_content":"<!-- wp:paragraph -->\n<p>The basic formula for calculating the ROI percentage = (Net Profit \/ Invested Capital) x 100.<br>In practice, however, it is more complex than a mathematical formula: many factors have to be taken into consideration.<br>Thus determining the real gains in both the short and long term.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading -->\n<h2><strong>Find all values for automation ROI<\/strong><\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Determine current costs<\/h3>\n<!-- \/wp:heading -->\n\n<!-- wp:list -->\n<ul><li>Cost of employees to be replaced (per year)<\/li><li>Cost of hiring, training, holidays and strikes of employees (per year)<\/li><li>Cost of production errors or rejects (per year)<\/li><li>Cost of quality control and rework (per year)<\/li><li>Cost of keeping safety high (per year)<\/li><li>Cost of accidents and workers' compensation (probable)<\/li><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Determining the costs of a robotic workstation<\/h3>\n<!-- \/wp:heading -->\n\n<!-- wp:list -->\n<ul><li>Cost of one or more robotics cell (one-off)<\/li><li>Cost of service and maintenance (per year)<\/li><li>Cost of wearing parts (per year)<\/li><li>Cost of electricity used by machines (per year)<\/li><li>Cost of personnel to operate the systems (per year)<\/li><li>Cost of unplanned failures (probable)<\/li><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Determine additional earnings<\/h3>\n<!-- \/wp:heading -->\n\n<!-- wp:list -->\n<ul><li>Increase in production (per year)<\/li><li>Increase in customer loyalty and retention (probable)<\/li><li>Increased safety for staff, fewer accidents (probable)<\/li><li>Increase in types of processing, such as extreme temperatures (per year)<\/li><li>Tax benefits, e.g. for Industry 4.0 (one-off)<\/li><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:paragraph -->\n<p>Usually the initial cost of a robot implementation is amortised in about 1 year.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>To get a fair estimate of profitability, it should be calculated over a horizon of 5 to 10 years, as an industrial robot works on average for 12 years.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Online tools ROI Robot Calculator<\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>If you want to quickly calculate the ROI of a robotized cells, you can use these online tools:<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:list -->\n<ul><li><a href=\"https:\/\/phoenixrobotic.com\/roi-robotic-system\" target=\"_blank\" rel=\"noreferrer noopener\">Phoenix Robotic ROI Calculator Robotics System<\/a><\/li><li><a href=\"https:\/\/www.automate.org\/robotics-roi-calculator\" rel=\"noreferrer noopener\" target=\"_blank\">Automate Robotics ROI Calculator<\/a><\/li><li><a href=\"https:\/\/roi-calculator.fanuc.eu\/landing\" rel=\"noreferrer noopener\" target=\"_blank\">Fanuc ROI Calculator<\/a><\/li><li><a href=\"https:\/\/blog.robotiq.com\/roi-calculator\" rel=\"noreferrer noopener\" target=\"_blank\">Robotiq ROI Calculator<\/a><\/li><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:heading -->\n<h2>A big problem<\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The high initial cost seems to be a disadvantage, but the real problem is that robotic automation, even though it has been used in industry for more than 40 years, is still seen as an uncertain investment.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>However, when all the risks and benefits are weighed up, as described above, there is no doubt about the effectiveness of robots.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Thanks to the increasing demand for automation and improved hardware, the average ROI for robotising a process is increasingly high.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>In addition, to reduce the initial investment, one can opt for used or reconditioned robots, which can have a good life expectancy.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Still in doubt?<\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Contact a system integrator who can answer your questions and provide you with a more accurate quote.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>or ask our <a href=\"https:\/\/community.robotics24.net\/\" target=\"_blank\" rel=\"noreferrer noopener\">robotics and automation community<\/a><\/p>\n<!-- \/wp:paragraph -->","_et_gb_content_width":"","footnotes":""},"categories":[9],"tags":[],"class_list":["post-162","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-guides"],"_links":{"self":[{"href":"https:\/\/robotics24.net\/blog\/wp-json\/wp\/v2\/posts\/162","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/robotics24.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/robotics24.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/robotics24.net\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/robotics24.net\/blog\/wp-json\/wp\/v2\/comments?post=162"}],"version-history":[{"count":24,"href":"https:\/\/robotics24.net\/blog\/wp-json\/wp\/v2\/posts\/162\/revisions"}],"predecessor-version":[{"id":1583,"href":"https:\/\/robotics24.net\/blog\/wp-json\/wp\/v2\/posts\/162\/revisions\/1583"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/robotics24.net\/blog\/wp-json\/wp\/v2\/media\/617"}],"wp:attachment":[{"href":"https:\/\/robotics24.net\/blog\/wp-json\/wp\/v2\/media?parent=162"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/robotics24.net\/blog\/wp-json\/wp\/v2\/categories?post=162"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/robotics24.net\/blog\/wp-json\/wp\/v2\/tags?post=162"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}