What is “Total Cost of Ownership” (TCO) and what does it have to do with implementing automated processes into your production lines? How will considering the concept of TCO in the procurement of your next production line or machine lead to increased productivity and profitability?
No one could have seen it coming. On an early morning in January, a fire ripped through a manufacturing plant in the outskirts of London, destroying the industrial space and along with it 7 converting machines and production lines. A blaze so large it could be seen for miles, it took fifteen fire engines and 97 firefighters to extinguish the flames. A leading manufacturer of canister wipes, the company knew they must respond swiftly and with resolve in order to keep the business going. Their immediate move to an old factory space, coupled with great partnerships to facilitate new warehouse space and custom automation machinery allowed them to barely skip a beat.
There are a number of automated manufacturing technologies that make a true difference in boosting productivity. The use of ultrasonic welding is on the rise at ELSNER as we help our customers further automate labor intensive operations.
Do you want to integrate automation into your manufacturing process but you're unsure where to start? Maybe your biggest hurdle is selling the idea to leadership. Effectively communicating the reason why and the ROI for any major shift is necessary. We're here to help.
Boosting productivity is something Elsner Engineering knows a little something about. Not only do we run a tight manufacturing ship in our own operation, keeping a strong focus on lean processes and efficiencies; we manufacture fully automatic converting machines that are key to our customers improving their processes. We recently worked with a company who moved to an Elsner fully automated wet wipe production line and found an up to 90% increase in production. Yes, that’s 90. So, it’s no surprise they have begun the process to purchase another line. Have you considered integrating automation to boost your productivity?
Top Line Efficiencies, Bottom Line Gains
We know that purchasing a production line, or even one piece of machinery, is a major capital expense for most companies, and many people look at the cost of the machine solely as the bottom line price. However, a Total Cost of Ownership (TCO) approach is far more comprehensive approach to procuring machinery by taking into consideration all the facets of what makes an operation efficient and, more importantly, profitable. Saving time, labor costs, space on your floor—what are the pain points you’re experiencing that automated machinery could help you solve? When considering the boost in output and efficiencies you stand to gain by incorporating automation into your process, maybe you should ask yourself what’s the cost to your bottom line of NOT automating?