Case Study - The best way to measure a ROI from a beam assembly machine for your business

Case Study - The best way to measure a ROI from a beam assembly machine for your business

The best way to measure a ROI from a beam assembly machine for your business

By international standards, Australia is the most expensive country in the world to fabricate steel. Australia’s structural steel industry has to aggressively compete with imported fabricated steel from low cost countries in Asia. Australian fabricators are faced with the option of relocating to Asia or automating their structural steel fabrication to survive.

When was the last time your business did not bid because you knew you could not win against imported fabricated steel from Asia?

When fabricators accept that their current assets are not performing (due to capacity, availability or reliability), they know they need to supplement or replace them. Many fabricators do not understand the ROI from a beam assembly machine (to automate the fabrication of cleats to beams) simply because they do not know how to measure it.

What every fabricator wants is an easy way to measure the efficiency savings, capacity increases and delivery improvement from a beam assembly machine.

Businesses can no longer accept anecdotal information or make emotionally driven decisions without tangible or measurable evidence to support a ROI.

Specialist Machinery Australia recognises our clients’ desire for a beam assembly solution that has measurable and identifiable benefits that will enable their business to be profitable when competing against natural competitors and imported fabricated steel from Asia.

How can ROI be measured?

1) Time Study

Fabricators know how many boilermaker-hours are typically required for welding cleats to beams from previous jobs that have been fabricated in their workshops.  The most accurate method to identify the timing of a ROI is for a fabricator to supply drawings of the parts fabricated so a time study can be arranged from Zeman.  When this is done, fabricators discover that the Zeman beam assembly machine is >65% faster than Australian workshops can manually fabricate.

Fabricators need to know the cost of automation when comparisons are made against boilermakers.  Fabricators expect a robot beam assembly machine will be faster than boilermakers’ capacity and output. Most agree the arc on time is more efficient with a robot-welding cell. The time study Zeman provide will demonstrate ton/hour so an average capacity per shift / month / year can be determined.  Fabricators can then compare how many boilermaker hours would be required to produce the same part so efficiencies can be measured and understood.

2) Capacity Comparison

How many ton of structural steel would your business be able to fabricate through a robotic beam assembly machine?

Capacity averages of how many ton the business can produce in a year and the number of boilermakers it takes to produce that capacity can be calculated from past project history.

Businesses that are fabricating >1500 ton of structural steel a year will have several boilermakers employed at a cost of up to $9000 per month, per boilermaker. Once skilled labour costs are established, fabricators can compare cost/ton from manual fabrication against the monthly lease repayments of a beam assembly machine (that will produce the parts up to >65% faster).

After completing this comparison, fabricators have found that a beam assembly machine can have the capacity of up to 20 boilermakers (as determined in the time study) but cost as little as four boilermakers per month in repayments.  This provides an auditable and measurable metric to provide a fabricator confidence of the timing of the ROI, which is what you want, isn’t it?

3) See the Machine in Operation!

Once a fabricator perceives a ROI is practical from a beam assembly machine they want to see the machine in operation.  During a recent trip to visit European clients who operate Zeman beam assembly machines, a group of Australian fabricators were shown a 5-year old machine that successfully passed QA/QC and met capacity per ton production targets.  Following the demonstration, the Australian fabricators expressed confidence that the Zeman beam assembly machine would assist them to win more work through improved delivery schedules and quality of product, which would in turn provides a faster ROI.  Ask us today when the next schedule visit is planned!

4) Complete a 3-way Projection

CFOs & finance lenders may require a 3-way projection of how the investment will affect key business drivers of cash flow, profit and loss and the balance sheet.   Using existing company figures as evidence, fabricators can ask if they can afford NOT to have a beam assembly machine.

5) Specification Matching Business Performance Outcomes

Partnering with a machine tool supplier who has knowledge and expertise to match your business’ performance outcomes to a machine tool specification will maximise value and a ROI.  Contact Specialist Machinery Sales today for proprietary gap analysis and SWOT business-modeling tools that will help your business identify what performance outcomes are required to win more and do more.

By measuring the ROI and implementing a specification-driven selection your business will be in a position to deliver increased capability, reduced deliveries, and improved efficiencies (from floor space, complimentary machinery, skilled labor).  Investment in a beam assembly machine can be demonstrated to provide a more competitive, efficient and productive product offering that increases positive cash flow outcomes into your business.

Contact Specialist Machinery Sales today to discuss how we can help improve your fabrication process and methods.

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Contact Specialist Machinery Sales today to discuss a superior machinery strategy for your business.

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