Calculating ROI is the best method to determine the financial advantage of automation. The return on investment (ROI) is a comparison of the money earned on the investment of a robotic system to the amount of money invested in the robotic system.
Automating a function on the factory floor can reduce the costs of production significantly. A robotic welding system typically produces the same output as four welders. Purchasing a reconditioned robot system can increase your return on investment. The high productivity of a robotic system and the lower cost of a reconditioned system will decrease the time required to recoup the robot's cost.
The annual savings of a typical robotic system can be calculated as follows: