Understanding ROI of RPA Implementation in Manufacturing 

July 21, 2021

The return on investment (ROI) of robotic process automation (RPA) in the manufacturing industry is difficult to measure and depends on various factors. The first step in calculating the ROI is figuring out how much you are planning to spend on your automation solution, and what savings you will receive by implementing that solution. Next, understand what increased efficiency means for your business – this includes not only reduced costs but also increased revenue-generating opportunities.

A company must have a clear understanding of their business needs so that they can choose a relevant automation solution. At the time of considering whether RPA in manufacturing can deliver ROI  many companies consider not only the cost of implementing automation but also what increased efficiency means for their business.

Based on calculations, a company’s initial costs may be recouped within two to three years if they are able to gain more than $100,000 in savings, annually.

With the help of RPA experts at PureSoftware and your team’s input on company needs, we can work together to develop a solution to meet your business-specific needs  – one which may be able to deliver an ROI within two or three years after implementation based on initial costs being recouped.

robotWhat is RPA and how does it work?

As the volume of data in manufacturing grows, it becomes increasingly difficult for companies to keep up. To get a grip on their environments—and increase flexibility and agility–many companies are turning to RPA. RPA is a software technology that enables you to automate manual tasks through computer programming or scripts. It can speed up the repetitive tasks associated with carrying out your day-to-day operations and is particularly useful when you need to process large quantities of information.

industrial robotBenefits of RPA in manufacturing

  • Increased efficiency in day-to-day operations with less time spent on processing repetitive tasks.
  • Greater flexibility as you can automate processes quickly without programming.
  • Increased accuracy as automation removes the risk of manual error.
  • Cost savings through optimization and better scalability to meet changing business needs, with faster deployment times that allow you to get a return on your investment more quickly.

laptopWhy would a company want to implement RPA in manufacturing?

Manufacturing companies are increasingly turning to automation because it enables them to streamline their processes, cut costs and remain competitive. This is especially the case when considering RPA as an option for your factory floor operations. With increased efficiency in day-to-day tasks—from accessing important information more quickly to automating repetitive data entry tasks—it is not difficult to see how automation could be a valuable investment for your company.

RPA is highly scalable and enables you to  respond quickly to changing customer demands.  In addition, RPA deployments are fast – often taking as little as two weeks – and you can see the ROI more quickly, with savings of up to $100K annually.

money bagHow much does it cost to implement an RPA project? What about the ROI?

Upfront costs for a project are minimal and can range from $0 to hundreds of thousands US dollars. The savings will come on the backend with significantly reduced manual efforts that need to be done every year.

One of the most important metrics that can be used to measure a company’s ROI for an automation project is labor hours saved. In one example, a typical employee performed tasks such as data entry and reporting in manual fashion – performing 20 small tasks per day with each task taking five minutes but adding up quickly. With an automation project, the same employee can perform five tasks in one minute. By implementing RPA technology to streamline their data entry processes, they were able to save 14 hours of work per day which translates into a savings of $600,000 annually with only three employees using this system across all shifts and locations.

rpa body

In another example, a client implemented RPA to analyze the results of raw materials arriving at their facility from suppliers, which helped them identify potential quality control issues before they started producing products. They were able to reduce inbound inspection defects by 25%, as well as increase production throughput and margins driven by better inventory management.

By investing both time and money into an automation project, these companies were able to increase their customer satisfaction and bottom line.

testHow do I know if RPA is the right solution for me?

Implementing new technology into a business can be challenging because it is not always easy for people who are already in place and used to doing things their way. The best way to determine whether RPA is appropriate for your business growth or not is to  discuss your company needs and challenges in detail with our experts at PureSoftware. We will work together with you to analyze your requirements and deliver a solution tailored to meet your business needs. .

If you would like to continue the conversation about our RPA value propositions for the manufacturing industry,  please write to us at  info@puresoftware.com or contact us.

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