Cost of Automation:
Here is an example of a production line scenario:
1 Product Line
8 Hour Shift
2 Shifts
5 Days Per Week
Here is an estimated quote for one of our print and apply label systems:
System Cost: $25,000
Annual Maintenance: $1,500
Downtime: 7% (includes unexpected repairs and routine maintenance of reloading labels, tapes, etc.)
Depreciation: 5 years
With an initial system purchase cost of $25,000, given all other variables, your per hour system cost is:
$25,000 (system purchase price) / 5 (depreciation) = $5,000 (annual system cost) + $1,500 (annual maintenance) = $6,500 (total cost per year)
1 (product line) x 2 (8 hour shifts) = 16 (hours per day) x 5 (days per week) = 80 (total weekly hours) x 52 weeks = 4,160 (total annual hours) – 7% (291) = 3,869 (actual working hours)
$6,500 (total cost per year) / 3,869 (actual working hours) = $1.68 system cost per hour
Cost of Manual Labor:
Let’s assume your employee is working at the federal minimum wage of $7.25 per hour. Your payroll taxes are 10%. As part of the employee compensation package, you also give them:
5 sick days /year
10 vacation days /year
5 paid holidays / year
1 hour paid lunch
Here is the breakdown:
Hourly rate: $7.25
Fringe: 10%
Hourly rate with fringe: $7.98
Sick or Personal Days: 7 (56 hours)
Vacation: 10 (80 hours)
Holidays: 5 (40 hours)
Paid Breaks: 5 hours per week (240)
Total annual paid hours: 40 hours per week x 52 weeks = 2,080
Total annual actual working hours: 1,664
Annual cost of labor (10% fringe): $16,598
Actual working time: 80%
Actual cost per working hour: $9.96
Given the initial production line scenario of 1 product line, two 8-hour shifts 5 days per week:
Manual Labor Cost:
$9.96 x 16 = $159.36 (daily) x 5 = $796.80 (weekly) x 52 = $41,433.60 (annually)
Automation System Cost:
$1.68 x 18 = $30.24 (daily) x 5 = $151.20 (weekly) x 52 = $7,862.40 (annually)
Annual Cost Savings with an Accuplace Automated System:
$129.12 per day
$645.60 per week
$33,571.20 per year
In the long term, an initial investment of $25,000 can save you a significant amount of $33,571 per year over time.