What is automation worth? Do the maths yourself

Automation is rarely about technology for its own sake. It is about getting more out of the plant you already have: fewer stops, less that has to be scrapped, and more hours where the machines actually produce.

But what does that mean in money? It depends on the plant. That is why we made a simple calculator, so you can do the maths yourself.

What does an hour of downtime cost?

The simplest way to see the value of automation is to ask what it costs when the plant stops. The cost is rarely just the lost production. Overtime to catch up, delayed deliveries, raw materials that have to be discarded and people waiting often come on top.

Many plants have no overview of how many hours they actually lose over a year. Each stop is short – ten minutes here, half an hour there – but the total quickly adds up. That is why the first step is almost always to start measuring.

Where does the gain come from?

More uptime

Good alarms, fast troubleshooting and preventive maintenance make stops shorter and rarer. Every hour a machine stands still is an hour without production.

Less scrap

Steady control and real-time monitoring keep the process within limits, so fewer products have to be scrapped or reworked.

More operating hours

Automating start-up, changeovers and monitoring makes it possible to run longer – also outside working hours – without someone standing at the machine.

Data to steer by

Key figures (KPIs) such as availability, performance and quality – combined in OEE – show where the losses are, so improvements go where they matter most.

Calculate your own plant

Enter figures for your plant – or use the example figures. The calculator shows how much more you can produce per year when stops get shorter and scrap goes down.

If you run one shift today, automation can make it possible to let the plant run unmanned in the evening and at night. Enter how many unmanned hours per week you have in mind – the calculator assumes the same stop and scrap rate as in manned time.

Gains the calculator does not show

The calculator only looks at production. In practice, automation often brings gains that are harder to put a figure on, but count just as much:

• Energy. Pumps, fans and compressors controlled by demand instead of running at full speed use less electricity.
• Quality and traceability. When the process is logged, you can document what was produced, when and under which conditions – useful for customers and authorities alike.
• Safety. Good alarms and automatic shutdown reduce the risk of harm to people and equipment.
• Less manual work. Routine tasks such as reading, recording and manual adjustment can be automated, so people can spend their time on what requires experience.
• Less vulnerability. When knowledge of the plant lives in the system and the documentation, you depend less on individuals.

How to get started

1. Measure what you have today. Log stops, causes and scrap for a few weeks. It is often enough to tap into signals that already exist in the control system.
2. Find the biggest losses. A few causes usually account for most of the stops.
3. Choose the measures with the greatest effect. That might be better alarms, an upgraded control system, new sensors or remote monitoring – not necessarily a large project.
4. Measure the effect. With the same key figures before and after, you can see in black and white what the improvement delivered.

We are happy to help with the mapping. We can set up logging of stops and scrap, find the biggest losses together with you and suggest the measures that pay off most – before you commit to anything bigger.

From example to real figures

The best basis is data from your own plant. By logging operating time, stops and quality – in Ignition, for example – OEE and other key figures become visible, and it is easy to see what an improvement has actually delivered.

Want help calculating for your plant? See our services or contact us for a no-obligation chat.

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