ROI Modeling

Estimate robotic welding value with a practical production model.

Adjust every assumption, compare planning scenarios, and keep optional capacity value separate from operating savings.

Quick assumptions

Choose a starting point, then tune the numbers.

Current production

Use one representative repeat-part family or a blended weekly average.

Parts per weekNumber of weldments or repeat parts processed in a typical week.

Manual weld and positioning time (hours per part)Current direct labor time spent welding, repositioning, and handling each part. Decimals are supported.

Loaded labor rate ($ per hour)Hourly wage plus benefits, payroll burden, and applicable overhead.

Automation performance

Start conservatively, then refine these assumptions with an RAS application review.

Expected welding time reduction (%)

Reduction in welding and positioning time on work that runs through the robotic cell.

Planned productive utilization (%)

Realization factor applied to time and quality gains. Allow for uptime, changeovers, part mix, and work that remains manual.

Quality and operating cost

Include only costs and improvements that can be supported by current production records.

Current weekly rework cost ($)Average weekly repair, inspection, rework, and defect-related labor and material cost.

Expected rework reduction (%)

Planning assumption for quality improvement on production covered by the utilization factor.

Added monthly automation operating cost ($)Optional allowance for incremental service, consumables, utilities, or financing costs. Leave at $0 for a gross-savings view.

Investment and capacity

Capacity value stays separate from operating savings so payback is not overstated.

Estimated system investment ($)Budgetary system, integration, installation, and training estimate used for payback.

Contribution margin per recovered hour ($, optional)Use only when recovered hours will support additional profitable production. This value does not reduce the payback period.

Planning output

Your adjusted estimate

$930,010estimated annual savings

5.2 monthsplanning payback

1,733.3manual hours / month

936recovered hours / month

$70,200labor value / month

$7,301rework savings / month

$77,501gross savings / month

$0added operating cost / month

$77,501net savings / month

232.5%annual savings / investment

Optional capacity opportunity$0 / year

Combined annual opportunity: $930,010. Capacity is excluded from payback and has value only when recovered hours support additional profitable work.

How the estimate is calculated

Manual hours = weekly parts × hours per part × 52 ÷ 12.
Recovered hours = manual hours × time reduction × productive utilization.
Rework savings = weekly rework cost × 52 ÷ 12 × expected reduction × productive utilization.
Net savings = labor value + rework savings − added automation operating cost.
Payback = system investment ÷ net monthly savings. Optional capacity value is excluded.

Illustrative planning estimate, not a guarantee. RAS should validate parts, fixtures, uptime, staffing, quality records, operating costs, and production demand before an investment decision.

ROI report

Receive a professional ROI summary.

The emailed report captures the adjusted assumptions and recalculates the results securely before it is saved.

FAQ

ROI Planning Questions

FAQ

What does the ROI calculator estimate?

The ROI calculator helps frame labor savings, throughput improvement, rework reduction, and payback assumptions for early robotic welding planning.