How to use the result
Count redeployed labour honestly
Automation may remove repetitive handling without reducing payroll immediately. State whether people are eliminated, redeployed to constrained operations or used to create extra shifts. The value of released capacity can still be real, but it should be described separately.
Include the installed project scope
A useful investment figure includes conveyors, controls, guarding, change parts, utilities, product feed, installation, training, trials and acceptance work. Excluding essential integration makes the payback look better but weakens the approval.
Model benefits beyond labour separately
Reduced giveaway, fewer rejects, higher output, improved consistency, traceability and safer handling may be important. Quantify each benefit with evidence and avoid counting the same gain twice.
Common questions
How is automation payback calculated?
Simple payback divides installed investment by annual net saving.
Should maintenance be included?
Yes. Include recurring costs that are additional to the present process.
How should increased capacity be valued?
Use contribution from realistic additional sales or avoided overtime, and document the assumption separately from labour saving.
Is the shortest payback always the best project?
No. Safety, quality, resilience, compliance, serviceability and strategic capacity may justify a project with a longer simple payback.