Robotic Automation ROI Analysis: Wet-Wipe Lidding Applications

Like many manufacturers, the wet-wipes industry faces labor shortages, efficiency demands, and competition in a crowded market. Another major challenge is adapting to numerous SKUs and changing product designs coming down their production lines.

Robotic automation helps overcome these challenges, streamlining operations and delivering measurable returns on investment (ROI). However, calculating ROI isn’t always straightforward. 

In this article, we’ll explore the key factors influencing ROI for wet-wipe lidding automation and high-speed pick and place applications, share a real-world success story of using robotics, and provide actionable steps to help you assess the potential value of automation for your operations. Let’s dive in.

RELATED VIDEO: How Customized Automation Delivers High ROI

How to Determine ROI of an Automation Solution

Before we get into the specifics, let’s review how to calculate ROI. If you look up a calculation for determining ROI, you’ll get a pretty clear-cut answer. 

Divide the profit earned on an investment by the cost of that investment.

In the real world, however, it’s not that simple. 

While there is hard and fast data that can be measured like improved throughput, reduced scrap, or reduced production costs, there are many factors that make it difficult to determine an investment’s true value. 

For example, employee satisfaction, safety improvements, and reduced churn have a significant impact on profitability. Likewise, the maintenance costs and longevity of a solution need to be considered, which can add or detract value over time — the longer a robotic solution stays up and running, the greater ROI it will deliver.

Assigning a "one-size-fits-all" ROI is challenging due to the customization of solutions for each manufacturer, varying business models, and regulatory requirements. ROI ultimately depends on how well a robotic solution fits the specific needs of a manufacturer.

Real-World Wet-Wipe Automation Results

A positive return on investment often results from reduced expenses and not necessarily increased revenue. When you can achieve both, the gains can be significant.

Wet-wipe lid application traditionally requires at least one operator to manage sleeved lids. While sleeved lids require less handling, they come at a higher cost. If lids are simply stacked in a box, two operators are often required to manually pick the lids and load them into the dispenser where glue is applied prior to affixing the lids onto individual packages being sent down a conveyor. 

QComp recently implemented a robotic solution for a wet-wipes manufacturer that automated the lid dispensing and application process, operating at an impressive rate of 150 pouches per minute. The custom programming for the solution allows for quick and easy adjustments to adapt to new SKUs and product configurations.

By automating the lid-loading process, the manufacturer was able to reallocate employees from this ergonomically demanding task to other areas of their operations, significantly improving workplace conditions and employee satisfaction.

RELATED: How It Works: Automated Lidding for Wet Wipes

The Bottom Line

The financial impact of automating the lidding process was substantial. The company operated three shifts per day and was able to eliminate the need for one manual position during each shift. If each position costs approximately $50,000 annually, that’s a labor cost savings of $150,000 per year. Add to that any benefits and the impact is even greater.

ROI Snapshot:

• Labor cost savings: $150,000+ annually
• Increased uptime and production gains: $200 per day additional revenue = $52,000 annually
• Intangible benefits: Improved employee satisfaction, reduced turnover rates, and fewer ergonomic injuries

Another consideration is the longevity of a solution. Multiplying these results over several years will extend the savings and ROI. At QComp, many of our robotic solutions have been in place for more than a decade with minimal maintenance requirements. 

As you can see, determining the ROI of an automation investment requires more than a simple formula. Factors like employee well-being, system adaptability, and long-term reliability significantly influence the true value of automation over time. 

If you’re considering automation for your wet-wipe production line but aren’t sure where to start, we’re here to help. Our team can provide a personalized consultation to assess your current processes, identify areas for improvement, and calculate the potential ROI of a custom robotic solution tailored to your unique needs. Contact the QComp team today.