Man vs. Machine? Compare Your Costs
By Jeff Melville
National Sales Director
Man vs. Machine. It’s a story that has been engrained, at least in my mind, since the release of the original Terminator movie. It provided a scenario where the human race was being replaced by machines that did tasks better and more efficiently than their human counterparts. In a way, that has become a reality, but it has allowed for the human aspect to be placed into roles that allow for better use of their intelligence. This has, in turn, allowed manufacturing to become more efficient, cost effective (I understand that rising material costs are fluctuating), and competitive in the world.
What may be the kicker in your decision is the labor shortage in the United States. The stories seen on the news do not match with what I hear from our customers daily, and I speak to a lot of them. Employers are willing to hire anyone with a heartbeat, but cannot fill positions. I’m never surprised when I hear that our customers can’t even get scheduled interviewees to show up for an interview let alone be hired and then subjected to being told when to be at work, what to do, and for how long (for some really great pay BTW).
In fact a recent study by Deloitte and the Manufacturing Institute) estimates that 53 out of 100 vacant jobs will remain so by 2028. This has all led for the need to step into the realm of automation just to have their business survive. Although it seems intimidating to dip your toes into the water of this not so relatively new way of manufacturing, playing the long-term bet and implementing small changes where you can, can show a relatively quick ROI.
A determination of cost of manual-only labor vs Mini-Mover Conveyors in a chart form can visually bring the pros and cons both a manual and more automated approach. We decided the compare one of the the most common, time-consuming and boring (but essential) task in a manufacturing area: Machine unloading. Let’s face it, having to tend a machine just to unload it? It’s considered in many shops to be “grunt” work, especially when the one tasked with unloading has higher-level skills. And it’s no surprise that there’s high turnover among workers tasked with this job.
Costs of Human Labor:
- Operator wages & inflation
- Workers compensation insurance
- Safety equipment and training
- Job training
- Payroll tax, benefits, other costs (per worker)
- Product loss due to human error and pace of work.
- Ergonomic risks
- Overtime cost
Costs of Automation Processes
- Up front capital investment
- Special operator training
- Maintenance
- Stoppages due to parts or program replacement
Mini-Mover conveyors with their small, portable, integrated ready options are a great way to begin or infill your automation needs. Moving parts from a machine with a small conveyor, rotary table, or both is an economical way many have infused automation into their shops, laboratories, and factories with very little effort.
| Work Station – Unloading Function | Manual Method | With Mini-Mover Conveyor | |
| Year 1 | Capital Investment | $0 | $10,000 (No special training needed) |
| Operator Shifts | 3 | 1 | |
| Wages per Operator | $50,000 | $50,000 | |
| Total Wages | $150,000 | $50,000 * | |
| Worker’s Comp Insurance | $4,500 | $1,500 | |
| Total Expense | $154,500 | $61,500 | |
| * Second-year savings is even greater | |||
A full automation setup does not make sense for every business. But even adding just a few small conveyors or rotary table accumulators to existing machines can allow one operator to attend to several machines. This reduces wasted time and effort for all operators in the shop. Maintaining high quality standards, while keeping costs under control, is what makes even small increments of automation a proven solution.