Getting the best out of Total Cost of Ownership

It’s an unfortunate fact that UK manufacturers – particularly within the food industry – stall on investing in robotics and automation. Investing in equipment – which for some high-spec, fully automatic turnkey lines can cost almost as much as the UK’s average house price – can bring out the fear of the unknown in many manufacturers.

While many don’t look past the initial price tag it is evaluating and taking a more proactive approach to total cost of ownership (TCO) which can help manufacturers unlock hidden savings, minimise downtime and boost productivity.

“The truth is we expect our systems to last for up to 20 years,” explains Richard Yates, customer and service manager at Endoline Machinery. “However many companies are unclear of the total cost of ownership throughout the lifespan of a system – and the direct and in-direct costs this might represent. It is often this lack of knowledge which deters manufacturers from making the initial investment.”

Part of TCO is maintenance, which is seen as a necessary cost of business but it should be a part of the overall business strategy to ensure systems remaining running at their optimum. With a proactive approach maintaining systems can become a key contributor to a company’s bottom line.

Yates outlines tips to ensure manufacturers get the most out of the equipment and how to bring the TCO to a minimum:

• It is imperative that you have a good relationship with your machinery supplier who can ‘hold your hand’ through the installation process and beyond. We offer 6 monthly servicing at Endoline throughout the lifespan of the system to ensure that the machine consistently runs at its peak
• Service agreements should be considered with the supplier as if a system needs a service it could end up costing you in the long run by bringing in a less-expensive local engineer who has no experience in the machine you are operating
• Ensure your machinery supplier has their own in-house team of engineers who specialise in their equipment. Not only can they diagnose problems but, with their knowledge of the machinery, they should be able to pre-empt any issues and modify the machine to make production more efficient – for example changing the air pressure and recognising if bearings are wearing
• They should offer you regular on the job training for engineers. It has been reported that manufactures believe their in-house engineers won’t have the know-how to implement and maintain the systems. However your machinery supplier should, if they have designed and manufactured the machines themselves, have an in-depth knowledge of the system and can take you through it step by step. Most larger manufacturers have their own team of engineers however they still need educating on a new system so Endoline, for example offer regular training workshops with exams and training certificates!
• Work with a machinery supplier who has their ‘finger on the pulse’ of current trends with the ability to modify software to suit your changing needs or a new product run. While Endoline have supplied case sealers for many years we have progressed over the years to create systems which can run at higher speed and offer more flexibility – keeping ahead of our customers’ expectations as their demands change
• Remote Diagnostics is quickly becoming a requirement from customers and a competitive necessity. The growth in this service, and its rapid troubleshooting capabilities, is escalating as it gives companies the assurances that their downtime, should problems occur, be kept to a minimum
• Does your machinery supplier hold enough spares? While we recommend that customers keep an amount of spares, such as tape heads, it is inevitable that machinery suppliers will receive an urgent call for a part! Therefore ensure that your supplier has the ability to turn around your order within 48 hours at most. At Endoline we keep a supply of unique stock, such as servo motor drives, to ensure that if our customers need it we can deliver to minimise downtime
• Finally – Quality over quantity. Investing in quality machines from the outset can ultimately save you ££’s in the long term. A poorly built system could end up being replaced several times over during the lifetime of a high quality system. So don’t overlook a more expensive system, look at the build quality, get customer testimonials and find out what their service plan is. Purchasing several cheaper machines over a longer period will eventually outweigh the initial investment of a more quality built product.

Investing in end of line equipment may be one of the most costly exercises your business does, however to avoid falling behind competitors, missing critical business opportunities or losing industry influence it is imperative that you seize the opportunity to automate. With careful planning you can keep TCO to a minimum and, by ‘getting into bed’ with a reputable machinery supplier, you can make your business more productive and efficient.

The Government is currently making all the right noises to help manufacturers make the initial investment in much needed automation to bring us up to date with our European counterparts. This includes an increase in the annual investment allowance (AIA) to £500,000 for investment in plant, machinery and equipment. So what’s holding you back?

Visit the Endoline Machinery website for more information.

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