The cost of labor can account for up to 85% of the cleaning costs for your facility.
If you want to learn more, please visit our website Autonomous Factory Cleaning Robot.
Since the process of cleaning can be time-consuming, optimizing each cleaning shift is essential to keeping labor expenses in check.
The right cleaning equipment can help ensure that your staff maximizes efficiency. Autonomous cleaning equipment is the most innovative and effective solution to boost productivity during cleaning shifts.
Autonomous cleaning machines are battery-powered janitorial equipment that can operate without a human operator.
These machines save time on repetitive tasks, allowing staff to focus on more critical cleaning duties. They offer consistent cleaning results and enhance worker safety.
Now that you understand the benefits of autonomous cleaning equipment, you might be wondering, "How much does this technology cost?" and "Can I afford this investment?"
While autonomous equipment can seem expensive upfront, it offers significant savings on labor, chemical, and water costs over time.
This article and accompanying video will help you determine the return on investment (ROI) of this equipment.
What is ROI?
ROI, or return on investment, measures the profitability of a purchase.
When you buy new equipment, the ROI is the money generated or saved by that investment over time.
ROI can be expressed as a percentage or dollar amount over a specific period.
Why is ROI important?
Understanding ROI helps decide if autonomous cleaning equipment is beneficial for your facility. It aids in making informed purchasing decisions.
By calculating ROI, you'll know how long it will take for your investment to pay for itself.
Once an investment has paid for itself, any additional savings contribute to ROI.
A positive ROI means your investment is earning or saving you money.
How Do I Calculate The ROI Of An Equipment Purchase?
Calculating the exact ROI can be challenging due to various factors.
We’ll break it down into 7 simple steps.
To calculate ROI, you'll need to quantify the following factors:
- Total Square Footage to be Cleaned
- Frequency of Cleaning
- Average Time to Complete a Cleaning Task In Your Current Process
- Average Time to Complete a Cleaning Task with the Automated Equipment
- Payback Period
- Loaded Cost of Labor (Hourly Rate, Benefits, Liability Insurance)
- Average Chemical & Water Usage
- Average Lifespan of the Automated Equipment
- Initial Cost of the Automated Equipment
Below are the steps to calculate the ROI for an autonomous floor scrubber.
Step 1: Identify Total Square Footage & Frequency of Cleaning
The first step is identifying how much floor space your staff typically cleans in a shift.
This measurement should exclude obstacles like desks and file cabinets.
For example, a 50,000 square foot facility might have only 35,000 square feet of cleanable space due to furniture and other fixtures.
Next, account for how often the floor is cleaned. Frequency depends on factors like traffic and soil levels. Some facilities clean once a day, others more often.
In our example, our staff cleans the floors twice daily. Using 360 days as the frequency of floor cleaning, given occasional holidays or days off.
Step 2: Identify the Loaded Cost of Labor for an Employee
The loaded labor cost includes all employer expenses for an employee to complete an hour of work. This goes beyond hourly salary to include taxes, benefits, and liability insurance.
For our example, we’ll use the loaded labor rate of $32.50/hr.
Step 3: Identify the Yearly Labor Costs of Your Current Cleaning Method vs. Autonomous Machine
Knowing your current yearly labor costs helps calculate potential savings with new equipment.
Calculating Yearly Labor Cost of Current Cleaning Method:
You need the loaded cost of labor and the time to complete cleaning tasks.
Comparing a 20-inch walk-behind floor scrubber to an equivalent autonomous scrubber: A 20-inch walk-behind scrubber can clean around 20,000 square feet an hour. In our facility, it would take 1.75 hours to clean 35,000 square feet, so twice daily would be 3.5 hours.
Maintenance tasks like preparing the machine, dumping and refilling tanks, and end-of-day cleaning take about half an hour per session. Doing this twice adds an hour.
Thus, it takes 4.5 hours daily for our cleaning staff (3.5 hours cleaning + 1 hour maintenance).
Daily loaded labor cost: $32.50 x 4.5 = $146.25
Yearly labor cost: $146.25 x 360 = $52,650
So, using a 20-inch walk-behind scrubber costs about $52,650 in labor per year.
Calculating Yearly Labor Cost of Autonomous Cleaning Machine:
An autonomous floor scrubber requires staff only for daily maintenance, about an hour daily.
Daily loaded labor cost: $32.50 x 1 = $32.50
Yearly labor cost: $32.50 x 360 = $11,700
Yearly Labor Savings:
Subtract yearly cost of using current machine from autonomous machine:
$52,650 - $11,700 = $40,950
Using an automatic floor scrubber minimizes errors and reworks. Autonomous machines achieve 98-99.5% cleaning coverage due to pre-programmed paths. Standard floor care equipment operators may miss about 15% of space, leading to costly reworks.
Reworks could cost up to $500 annually, avoidable with an autonomous cleaner.
Step 4: Calculate Approximate Chemical & Water Savings (if possible)
Cleaning costs include chemicals and water. These costs vary with the cleaning method and machine. In our example, water costs $7.00 per 1,000 gallons. Autonomous scrubbers use 40-70% less water, saving around $7-10 annually.
This reduction also lowers chemical usage, estimating annual savings of about $840 from reduced chemical use.
Total annual savings on chemicals and water: approximately $850.
Step 5: Calculate the Payback Period
The payback period is the time it takes to recoup your initial investment. After this period, savings contribute to your ROI.
First, total your yearly savings (labor, rework, chemical, and water):
$40,950 + $850 + $500 = $42,300
Calculate monthly savings by dividing yearly savings by 12:
$42,300 / 12 = $3,525
Divide the equipment cost by monthly savings to get payback period:
$58,000 / $3,525 = 16.5 months
If a new autonomous scrubber costs $58,000, it will take about 16 months to pay off in labor savings—just over a year.
Step 6: Calculate the Savings over the Lifespan of Your Equipment
To calculate lifetime savings, multiply yearly savings by the equipment's lifespan. For a scrubber lasting 7 years:
$42,300 x 7 = $296,100
In this example, you save approximately $296,100 over the equipment's lifespan.
Step 7: Determine ROI
To find ROI, subtract equipment cost from lifetime savings:
$296,100 - $58,000 = $238,100
The ROI in this example is approximately $238,100.
Final Thoughts
Knowing your equipment's ROI helps determine its worth to your business.
ROI depends on factors like task time, labor costs, equipment cost, lifespan, and maintenance costs.
Need help calculating the ROI of autonomous equipment for your facility? Contact Imperial Dade for an onsite evaluation.
If you’re based in the United States, Puerto Rico, the Caribbean, or Canada, Imperial Dade can assist with all your janitorial equipment needs, including finding the right autonomous machines for your facility.
Check Out These Related Articles:
Exploring Autonomous Mobile Robots (AMRs) for your warehouse? You're not alone. AMRs are revolutionizing automation, from carrying goods to inventory management. But what about the cost? We’re here to help you understand if an AMR fits your budget.
Let's get started.
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What Types of Mobile Robots are Available on the Market?
AMRs: Autonomous Mobile Robots
AMRs navigate independently, avoiding obstacles and optimizing routes. Ideal for transporting goods in warehouses or factories without predefined paths.
AGVs: Automated Guided Vehicles
AGVs follow fixed routes, perfect for repetitive tasks like material transport along set paths.
IMRs: Industrial Mobile Robots
IMRs handle heavy loads and tough environments, commonly used in manufacturing for moving large items or materials.
ACRs: Autonomous Cleaning Robots
ACRs clean floors autonomously, ideal for large spaces like warehouses, shopping centers, or airports.
Each type of mobile robot has its specialty. Choose the one that best fits your needs.
In this article, we will focus primarily on AMRs.
What are the Main Applications of an Autonomous Mobile Robot?
Based on our study of over 62 AMRs, we’ve identified three main applications used by businesses.
1. Material Handling
Material handling is the most popular use for AMRs, with 56 out of 62 models designed for this purpose. AMRs can efficiently move materials within your facility, enhancing operational efficiency and easing worker tasks.
2. Transportation
The second most common application is transportation, found in 49 AMRs. This involves relocating goods throughout your facility, from shipping docks to inventory shelves. AMRs navigate complex routes swiftly and safely.
3. Picking and Packing
Lastly, picking and packing is another significant role for AMRs, with 38 models dedicated to these tasks. In fast-paced order fulfillment environments, AMRs reduce errors and increase throughput, crucial for e-commerce and retail distribution centers.
What Affects the Price of an AMR?
The cost of an AMR depends on several factors. Here's a breakdown:
Size & Complexity
Larger and more complex AMRs are more expensive. Advanced sensors and software for challenging tasks add to the cost.
Capabilities
Specific tasks like picking and packing or outdoor operation increase costs due to sophisticated technology and programming.
Brand & Compatibility
Brand reputation and integration with existing systems impact the price. Well-known brands may offer advanced features at a higher cost, but seamless integration can save money long-term.
Setup & Maintenance
Consider installation, team training, and ongoing maintenance costs. Some AMRs are designed for easy setup and low maintenance, which can help manage costs.
Understanding the Full Cost of an AMR
Consider the total cost beyond the initial purchase. Here are the factors:
Initial Purchase Price
AMRs range from $10,000 to $100,000 based on size and technology. Choose based on the tasks needed, like picking a car: more features mean higher costs.
Operational Costs
Post-purchase, factor in maintenance, software updates, and staff training.
Hidden Costs
Unexpected costs like system reconfiguration, additional robots for growing businesses, or workspace changes can add up.
Calculating AMR's Total Cost of Ownership (TCO)
TCO includes the full story of costs over the AMR’s lifetime, helping make informed decisions.
How to Calculate TCO
Use this formula: TCO = Initial Purchase Price + Operational Expenses + Hidden Costs
- Initial Purchase Price: The cost to buy the AMR.
- Operational Expenses: Costs for maintenance, updates, and training.
- Hidden Costs: Reconfigurations, additional equipment, and workspace adjustments.
Add these to understand the total cost, plan your budget better, and avoid surprises.
TCO Example: Breaking Down the Numbers
Using an example AMR with a $50,000 initial cost:
Operational Expenses over 5 years:
- Maintenance: $2,000/year
- Software Updates: $1,000/year
- Staff Training: $3,000 (one-time)
Total Operational Expenses: $25,000
Hidden Costs over 5 years:
- System Reconfiguration: $5,000
- Additional Equipment: $4,000
Total Hidden Costs: $9,000
Calculating TCO:
TCO = $50,000 + $25,000 + $9,000 = $84,000
Over 5 years, the TCO for your AMR is $84,000, considering ongoing and unexpected costs.
Getting the Most Out of Your AMR Investment
Maximize your AMR investment with these tips:
Pick the Perfect Match
Choose an AMR that fits your needs. Select one that aligns with your specific tasks to avoid unnecessary features and costs, enhancing efficiency.
Grow Smartly with Scalable Solutions
Opt for AMRs that can scale with your growth. Scalable solutions ensure long-term benefits, preventing costly overhauls.
Tap into Financial Support
Explore grants and incentives from governments or industry organizations to reduce initial costs. Research or consult experts for financial aids, easing the transition to automation.
Conclusion:
Ready to enhance your operations with AMRs and automation technologies? Explore Qviro.com for all the information you need. Need personalized advice? Contact our experts for a custom assessment and quote to fit your specific needs. Let's work together to upgrade your operations.
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For more information, please visit Autonomous Floor Scrubber Company.
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