In the ever-evolving landscape of the manufacturing sector, businesses are grappling with the imperative to adapt swiftly to innovative technological changes. The key to staying competitive and meeting escalating demands lies in embracing automation and maximising your ROI with automation. Regardless of your industry, automation is reshaping businesses, driving productivity, and elevating the bottom line. But did you know there are tangible costs associated with neglecting automation?
Let’s delve into your unresolved business challenges that might be undermining your bottom line. It’s time to raise awareness about the transformative potential of six-axis collaborative robots, heralding the next industrial revolution.
What is automation?
Automation isn’t just a technological upgrade; it’s a solution to a myriad of business problems. Increased productivity translates to doing more, doing it better, faster, and with reduced resource utilization. Whether it’s labour, floor space, turnover, or workers’ comp claims, automation addresses these issues, ultimately reducing costs and improving top-line revenue. In essence, automation is the key to solving business problems, maximising your ROI with automation and enhancing your bottom line, leading to increased profitability.
Common business challenges
Now, let’s address common business challenges that you may encounter, perhaps even within your own facility.
The first challenge involves ramping up production to meet burgeoning demand. You face several options, each with its own set of consequences. Doing nothing risks turnover to competitors, adding overtime impacts profitability, a second shift strains resources, and scaling up through expansion may outweigh benefits. The alternative? Automation.
Automating existing lines, equipment, and processes not only increases production throughout the day but also during unmanned production hours.
Another challenge is maintaining profitability in the face of competitors offering reduced prices. Your options include maintaining the status quo, adding more resources at the cost of profitability, outsourcing overflow production, or embracing the fourth option: automation of existing lines.
Automation here ensures sustained volume, controlled costs, and better competitive positioning.
One of the most common and pressing challenges is the shortage of skilled labour. The implications are diverse – from underutilized machines to high training costs and reduced margins due to overtime. Automation offers a strategic solution by mitigating reliance on a volatile labour market.
The impact of automation
The impact of automation goes beyond labour considerations.
Historically, Maximising your ROI with automation was primarily associated with labour reduction, but the trend has shifted towards increasing production efficiency. Looking ahead, collaborative robot (cobot) investments are becoming crucial. With data-backed ROI, cobot investments affect various factors, not just labour, with an average return in less than a year.
Our mission is to equip you with the tools to address your business challenges effectively and achieve swift returns on investment. To embark on this transformative journey, start by understanding the metrics of your business – from parts production to annual volumes, margins, and growth projections. Book your FREE consultation HERE
Armed with this insight, explore the categories of savings with crucial numerical parameters in mind.
Numbers you need to know to make informed decisions:
- Annual unit production volume
- Standard unit cost
- Average unit sell price
- Standard unit labour hours
- Standard labour cost, burdened
- Average workers’ comp claim cost
- Floor operating cost per ft²
- Warranty cost (% of annual sales)
- Warranty cost per unit
- Annual inventory carrying cost (% of standard costs)
By embracing automation and understanding the holistic impact on your business, you pave the way for enhanced competitiveness, sustained profitability, and long-term success.