Cost Justification for a Sensor ProgramDecember 1, 2010
I have been asked, again and again—especially in this difficult economy—to explain the cost justification and payback for the implementation of a serious sensor program. The following is derived from a handout that I give to metalforming-company executives wishing to better understand how to justify the implementation of electronic sensors via a serious program.
First, some actual benefits as reported by metalformers that have such a program:
- Automatic presses running from 35 to 150 percent faster.
- Multiple automatic presses per one operator (from two to six per operator).
- Minimization of die crashes for all active dies, with some shops having zero die crashes in a given year
- Drastic reduction in routine die maintenance (by as much as one third).
- Elimination of scrap, double hits and die damage in single-stroke dies.
- Elimination of part sorting and rework through automated in-die part measurement.
- Blending of stamping and assembly into one die (example: in-die welding of hardware).
- Pressroom efficiencies (actual part run time) of 85 percent plus.
- Detection of assembly errors at the assembly process, prior to shipping.
- A culture of electronic sensor-based error-proofing permeates the entire plant with consistency.
- The freeing-up of the toolroom to be more proactive and build error-proofing into the process.
- Hundreds of thousands of dollars in annual cost savings due to the implementation of a serious sensor program in pressrooms and assembly areas.
Some typical questions regarding what it costs not to have the program?
- What is your annual cost of die repair?
- What is the annual cost of die maintenance?
- What is the cost of quality, sorting and rework?
- What is the cost of press and die downtime?
- What are the speeds of the presses, and convert this to dollars/min.?
- How many operators per press in dollars/yr.?
- What is the cost of express shipments and overtime labor to make up the schedules?
- What is the cost of nasty surprises such as canceled orders?
Using the above statements and guidelines, it is possible to broaden the understanding of why electronic sensors, when properly applied, pay for themselves hundreds of times over. Take a deep breath and then calmly grasp the full extent of the costs of not having a serious die-protection and in-die part quality measuring program. MF