Convince Your Leadership to Buy an Automated Assembly System (A Cheat Sheet)
Purchasing an automated assembly system can be a big step, and may seem intimidating for an organization. If you see the benefits of automation for your company but need help getting management buy-in, read on for rationale you can share with leadership.
Drive Efficiency With Automated Assembly Systems
Mature markets can be especially price-sensitive. There are a slew of consumer products, like power tools and appliances, that have been around for so long that we take them for granted. These daily conveniences have practically become commodities. There is a great deal of price pressure on these markets. Manufacturing automation, including automated welding systems, can help achieve manufacturing efficiencies and drive down production costs. Typical cost savings achieved by automated welding systems include increased throughput, reduced downtime and improved weld integrity.
Pivot Quickly to Capture New Opportunities
Evolving market trends create new opportunities; sometimes from completely unexpected sources. For example, when the pandemic took hold in the U.S., demand for PPE, including masks and face shields, skyrocketed. Positioning your company for agile manufacturing enables you to jump on opportunities.
Reduce Labor Costs
Automated systems contribute to labor cost reductions. Take advantage of decreased wages resulting from fewer workers, less labor overhead including reduced benefits costs, and lower training costs.
Adapt to Changes
Automated welding systems can easily be adapted to accommodate new product production, changes in batch or lot sizes and new raw material sources. Reconfiguring automation equipment, to make it more adaptable to third-party integrations, also enhances manufacturing agility.
Eliminate Unexpected Downtime
Freshly installed automated welding systems have lower maintenance costs than aging equipment. This new equipment can count cycle times and alert you when maintenance is required. Planned maintenance is always less expensive than unexpected breakdowns that can damage equipment and cause disruptions in production cycles.
Increase Energy Efficiency
Automated assembly systems are typically more energy-efficient than their older counterparts.
Leverage Data With IoT
Production data shared across your manufacturing floor enables you to optimize the manufacturing process. Troubleshooting, including analyzing the root cause of bottlenecks, is one way your automated welding system can help you leverage data. For more sophisticated installations, modeling with predictive analytics can eliminate the need for quality control sampling.
Focus on Sustainability
More efficient processes, including precise application of raw materials to a part, lower raw material consumption.
Payback Periods and Other Motivators
Payback periods for an automated assembly system vary across industries and companies. It is important to think through your management’s priorities when presenting the case for investing in automation. At AMS, we work with each customer to determine an appropriate payback period for their investment.
Each industry, and each company within an industry, has its own set of values and goals. Some will be motivated by “hard” justification factors like return on investment (ROI), cashflow, cost reduction and quality improvement. Your management might want to focus on staying ahead of the competition and having state-of-the-art equipment. Or does your management pride themselves on leveraging existing equipment?
You should also think about “soft” justification factors like increased flexibility, additional capacity or throughput and enhancement of corporate values. Be savvy as you think through pain points and aspirations at your company. Then decide how to package your pitch to your management in a way that is most likely to motivate them.
Management Buy-In “Pitch” Template
Thorough preparation and a targeted, persuasive approach is your best bet in convincing management that buying an automation system is a great investment. Here’s a template to get you started. It contains four sample corporate values and reasons why automation supports those values. You can add your own company values and pitches.
|Company Value||Automation “Pitch”|
|Maintain manufacturing competitiveness||Cost-containment and increased throughput|
|Sustainability||Energy efficiencyReduced raw material consumption|
|Lower labor costs||Labor force reductionDecreased salary costsFewer benefit costs Vacation/PTO (paid time off)Health insurance401(k)|
|Improve national security (for medical markets)||Enhance U.S. ability to be self-sufficientReduced reliance on other countries for critical healthcare equipment including PPE|
|Your company’s value||A description of how automation addresses your company’s value|
Ready for an Automated Assembly System?
Looking for help addressing your company’s automation needs? We are happy to help. Just book a complimentary application review with us today.