A Robot process is being considered as an alternative option for an existing man

Question

A Robot process is being considered as an alternative option for an existing manufacturing process which operating and cost parameters as shown below. What is the ROI in 96 for the Robot option? Manufacturiong Process Options Option 1 - Robot Process Option 2 - Hunman Operator Process parameter units alue parameter units alue Robot price robot life Robot productivity Operator working days Op[erator working hours 145000 Single Operator costA Number of operators per process All Operators productivity Operators working days Operators working hours S/ year 35000 years parts/hour 30 days/year 250 hrs/day parthour8 days/year 250 hrs/day 6 50.71

Explanation / Answer

Operator cost/year = 35000

No of operator = 2

Total cost = 35000 x 2 = 70000

Robot cost = 145000

ROI = 145000-70000 = 75000

percentage ROI = 75000/145000

                        = 50.71

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