ROI Tool Data Entry Work Sheet

ROI Tool Data Entry Work Sheet

To use the Rockwell Automation ROITool you will need to insert your information into the fields provided on the RA Safety Portal web page. You will be adequately prompted for your company specific data needed for the background ROI calculations. Information buttons will be provided as needed for additional background information throughout. You may use this form as a work sheet to gather your information for the ROI calculation.

The RASafety Portal (

Safety Solutions.aspx)

Item Description

WholeWs annualized

A) Cost estimate

1

? Total project cost estimate (controls, software, installation, training, etc.)

B) OEE cost savings analysis (3 Elements)

? Availability increase:

2

a Unscheduled Downtime per Week in minutes

3

a Operations Cost of Downtime per minute (not including lost production)

4

a Weeks of Unscheduled Downtime per year

5

a Reduction Factor (RF%) of all unscheduled downtime attributable to the proposed RA

4

Safety System. A "Best-in-Class" default value of 4% is provided. Enter another

number as needed.

6

a Unscheduled Downtime Savings (first year)

Tool Calculated

automatic

? Performance increase:

7

a Increased Units Produced per Week

8

a Scheduled Production Weeks per year

9

a Profit Contribution dollars per unit

10

a Increased Profit (first year)

Tool Calculated

automatic

? Quality improvement (Nj A at release)

N/A

C) Increased capital asset depreciation

11

? Total project cost (see line #1 above)

12

? Residual value

13

? Depreciation term (10 Years is the default value) Enter another number as needed

10

14

? Depreciation (first year)

Tool Calculated

automatic

D) Direct injury costs

15

? Direct injury cost (12 months - associated with the existing system)

E) Indirect injury costs (12 months)

16

? Direct injury cost (see line 15 above)

17

? Ratio - 2:1 is the default ratio. Enter any number from 1 to 14 as needed

18

? Indirect injury cost (first year)

Tool Calculated

2 automatic

ROI (% first year return on investment)

Tool Calculated

automatic

ROI Tool- Definitions of Terms for Data Entry

A. Cost 1. Total Project Cost -Total project $ cost estimate for the system incl. controls, software, cabinets, installation, training, ete.

B. OEE (Overall Equipment Effectiveness) Availability - reduces the cost of unscheduled downtime

2. Unscheduled Downtime - Total unscheduled downtime/week in minutes. 3. Operations Cost of Downtime - Downtime $/minute (not including lost production). 4. Weeks of Unscheduled Downtime - Total number of weeks/yr in which unscheduled downtime

occurred. 5. Reduction Factor - Multiplier for reduction in unscheduled downtime attributable to the

proposed new system compared to the existing system. "Best-in-Class" default value is .04 (4%) improvement. You may enter your own expected value. The RF should not include; mechanical and "other" breakdowns, material shortages, scheduling issues, intermittent connections, missfeeds, jams, operator or maintenance mistakes, ete. 6. Unscheduled Downtime Savings (first year) - automatically calculated

Performance - generates more uptime and increases production volume 7. Increased Units Produced - The average units produced/week times the entered RF (in # 5)

above. 8. Scheduled Production - The number of scheduled production weeks/year. 9. Profit Contribution - The profit $/unit. 10. Increased Profit (first year) - automatically calculated

C. Increased capital asset depreciation 11. Total Project Cost - The same as item #1 above. 12. Residual Value - The book value of the integrated safety system at the end of its depreciation schedule. 13. Depreciation Term - Years for asset depreciation. 14. Depreciation (first year) - automatically calculated

D. Direct injury cost - Includes; medical expenses, rehab expenses, wages, & increased worker's comp, 15. Direct Injury Cost (12 months) - automatically calculated

E. Indirect injury cost (12 months) - Indirect injury costs include; lost productivity and downtime, OSHA fines, repairs to property, temporary employees, cost of other response employees, insurance/legal expenses, training, etc. 16. Direct Injury Cost Dollars - Automatically populated from item tt15 above. 17. Ratio - The ratio of indirect to direct injury costs ranges from 1:1 to 17:1. A ratio of 2:1 is a conservative default value. You~ own value may be entered. Indirect injury costs include; lost productivity and downtime, OSHA fines, repairs to property, temporary employees, cost of other response employees, insulrance/legal expenses, training, etc. 18. Indirect Injury Cost Dollars - automatically calculated

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