What’s the cost of an automated surface inspection system, and when is it worth the investment?
First of all, the benefits of automated quality control in order to detect and categorize surface defects will, in most cases, be obvious:
Improved quality. Advanced surface inspection systems can identify surface defects that are difficult to detect manually, ensuring that only products that meet quality standards get through production.
Enhanced efficiency. Automated inspections operate continuously at high speeds, reducing downtime and eliminating the need for labor-intensive manual inspections.
But still, you will need to have a solid business case in place to make the case for a significant change in your production process. In this article, we will discuss the costs involved in implementing such a system and how to calculate the potential return on investment (ROI) to determine whether this investment makes sense for your production line.
The cost of implementing an automated surface inspection system
Investing in a surface inspection system involves several cost elements:
The surface inspection system
The primary cost driver will, of course, be the vision system itself. The price of this can vary greatly depending on the degree of customization you will require.
Using JLI vision’s standard surface inspection system, Surface Control AI, as a benchmark, the cost will start at €98.000, including implementation and training.
Time for training
Internal time and resources for system setup and operator training should also be factored in, along with the potential downtime during installation.
Ongoing costs
Service agreements and maintenance will not be a significant cost driver for a system like Surface Control AI, but should still be taken into consideration.
Calculating ROI for surface inspection systems
Determining the true value of an automated surface inspection involves evaluating both tangible and intangible benefits like brand reputation, but for the sake of the ROI calculation, let’s stick to the more tangible ones.
Reduction in labor costs
Calculate how many manual inspection roles can be redeployed or reduced. For example, if a system reduces inspection staff from 10 to 2 operators, the cost savings in salaries are significant.
Improved throughput
Automated quality control systems operate at high speeds (up to 100m/min for some systems), significantly increasing production capacity and reducing bottlenecks. We’ve also seen examples of automated inspection allowing the production line to continue running during breaks - significantly increasing efficiency.
Minimizing false rejects
Measure the current percentage of false rejects and calculate the associated costs. For instance, if false rejects account for 2% of production and an advanced inspection system can reduce this to 0.5%, the savings can be substantial on a large-scale production line.
Avoiding defects slipping through to customers
Factor in the cost of handling customer complaints, including shipping and administrative expenses. Reducing complaints by even a small percentage can improve the bottom line.
Example of simple ROI calculation for surface inspection system
Here’s a simplified ROI example, only factoring in a decrease in false rejects and a cost saving from a reduction of manual labor.
Scenario:
- Annual production: 100,000 items.
- Current false reject rate: 2%.
- Cost per rejected item: €100.
- Reduction in false rejects: 1.5% (down to 0.5%).
Savings from false rejects:
€100 × 1,500 fewer rejects = €150,000/year.
Labor savings:
4 fewer inspectors × €50,000 annual salary = €200,000/year.
Total annual savings:
€350,000.
Total investment, including internal costs:
€150.000.
This results in a payback period of less than 6 months.
Looking beyond the numbers
As mentioned above, there are also other benefits to take into account that are more difficult to put an exact number in terms of value but are equally valuable nonetheless.
This could be things like:
Improved brand reputation. Delivering consistently high-quality products will benefit customer satisfaction and loyalty.
Production process insights. Automated inspection systems can provide analytics on production trends, enabling better decision-making and process optimization.
These benefits should also be a part of the equation when you are making your own evaluation of the ROi of an automated surface inspection system.
