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AUTOMATION & ROBOTICS W
hen looking to invest in a high-value piece of automation equipment, a key question of any potential purchaser is: what is the payback period? In
the UK, the typical expectation is that this will be under two years. Yet the value that the right automation solution can deliver to a manufacturing business will last far longer than that. This focus on short-term return is hindering our productivity as a nation. Our neighbours in the EU typically expect payback in three to five years, which goes some way towards accounting for their higher levels of both automation and productivity (a German worker produces around one-sixth more per hour than their UK counterpart ). Despite our relative reluctance to automate, the UK recently overtook France to become the eighth largest manufacturing nation. If we are to continue competing on the global stage, however, then it is imperative that we increase our level of industrial automation – we currently languish in 25th position in the IFR global robot league table – not least because of the ongoing labour shortages across all areas of manufacturing. We are the only G7 nation to sit outside the top 10 robot adopters; that alone should inspire us to increase our levels of automation in order to drive higher productivity, greater efficiency and increased output.
PRIORITISING TCO:
DELVING BEYOND PURCHASE PRICE
supplier about how their solution can help to control these costs, to ensure you’re getting real value from your investment…
1. PURCHASE PRICE While much of the focus of any negotiation is concerned with purchase price, it actually only accounts for between 15-25 per cent of the total cost of ownership. Solely focusing on this as the deal-breaker can lead manufacturers to invest in an automation solution which may not be fit for purpose. While FANUC strives to make our products extremely cost competitive when it comes to the initial purchase price, with as much as 85 per cent of the ‘hidden’ costs of ownership coming via other factors, it is counter intuitive for manufacturers to base their sole automation investment decision on this point.
To do that, we need to get realistic about
return on investment. Focusing on a sub-two year payback can lead to businesses making compromises when developing their manufacturing strategy, and thereafter their capital equipment and automation purchasing strategy, and forces decisions to be made that do not offer long-term value. By contrast, determining the value of
automation using total cost of ownership (TCO) is a far more accurate measure. Any investment in capital or automation equipment should form part of a business’ long-term strategy, and not simply because the purchase price fits into an arbitrary short-term payback period. By calculating the lifetime costs – and more importantly, the lifetime savings – associated with automation, manufacturers can ensure that the sums add up in the long term and not just at the point of purchase, resulting in the right solution for their business both now and in the future. Here are the nine factors that make up TCO
lifetime costs. Before considering any automation purchase, make sure to talk to your
2. TRAINING Whether your workforce is used to dealing with smart, connected automated solutions or is unfamiliar with modern robotics, some element of training will be required to ensure the full value of your equipment can be realised. We offer an array of upskilling resources from our dedicated training facility in Coventry, from basic operating courses to full programming and maintenance courses. Ensure your business can keep up with the pace of change in today’s digital world by making sure any automation
By Oliver Selby, head of Sales, FANUC UK
supplier you choose offers full training for the lifetime of your purchase. It is also important to focus on multiple
stakeholder levels in the business. When adopting automation, different stakeholders will require different levels of understanding. For example, at shop floor level a technical level of comprehension will be needed; meanwhile, the C-Suite will need to understand the business case for automation.
3. MAINTENANCE Keeping your equipment running at optimal levels will ensure it delivers day after day, week after week, year after year. Our products are extremely reliable, so much of what we offer from a servicing perspective falls under
10 JULY/AUGUST 2024 | FACTORY&HANDLINGSOLUTIONS
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