Case study: considering whether to invest in automating the production of a given part

Model example

We want to produce 60,000 parts per year, first machined on an SP 430 turning centre and then finished on an MCV 1000 milling centre. We are considering whether the investment is worthwhile.

Without a robot
With robot
Required production capacity per year
60 000 pcs
60 000 pcs
Working hours per year (350 days, 4 shifts)
8 400 h
8 400 h
Production efficiency
62%
91%

The introduction of automation eliminates operator downtime. The robot always has a semi-finished product ready for the fastest possible changeover, thus increasing production efficiency. Production efficiency is dependent on machining times, handling times (robot or operator) and machine adjustments (tool changes, etc.).

Production time of the SP 430
12 min
12 min
Calculated number of SP 430 machines
2.5
1.7
Required number of machines SP 430
3
2
Production time of MCV 1000
5.8 min / piece
5.8 min / piece
Calculated number of MCV 1000 machines
1.2
0.8
Required number of machines MCV 1000
2
1
Required number of operators / shift
3
1
Annual salary (400 000 CZK / operator)
4 800 000 CZK
2 544 192 CZK

Due to the higher production efficiency, the number of machines needed is lower and the number of operators per shift is also lower.

Investments in robotics
4 250 000 CZK
Investment in SP 430 machines
13 590 000 CZK
9 060 000 CZK
Investment in MCV 1000 machines
7 446 000 CZK
3 723 000 CZK
Total investment
21 036 000 CZK
17 033 000 CZK
Cost of materials
31 CZK / pcs
31 CZK / pcs
Tools + energy for one piece
15 CZK / pcs
15 CZK / pcs
Required return on investment in years
3
3
Price / part
243 CZK
167 CZK
Cost difference per workpiece
31,1 %

Economic effects of automation: