Economic Considerations in Using Robots

Economic Considerations in Using Robots

Economic Considerations in Using Robot - Robots have been manufactured by Unimation, Inc., since 1961, but only in the late 1970s did the demand for robots start to accelerate. The reason for this change to robotics is simple economic investigation which depends upon the following factors:

(i) Availability of other methods including suitable special purpose automation.

(ii) Number of shifts.

(iii) Duration of job.

(iv)Labor cost.

(v) Installation cost.

(vi) Cost of auxiliary equipment such as other parts orienters, conveyors or inspection equipment.

(vii) Cost of service and operation v/s special purpose automation, and

(viii) Availability of funds for, investment in equipment.

A basic equation for determing the payback period for a robot installation is:

P= I/L-M

P= Pay back period in years,

I-Total investment for robot and accessories,

L== Annual labor savings,

M == Annual maintenance expense.