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.