ROI (in months) is the point of equilibrium between the cash flow out for capital equipment
and cash flow in of positive gains produced by that capital equipment.

As a standard practice, most companies wish to have a return on their investment (ROI)
of no more than 24 months.  URI solutions routinely delivery 12 months or less ROI !!!

(Getting the BALL PARK Numbers)

First calculate the Manual Labor Burden Rate for the task which is being considered for
automation.  The Labor Burden Rate consists of, but is not limited to the following costs:


       Hourly wage
       The State and Federal Taxes paid by the employer
       Unemployment insurance.
       Workmen's Compensation & Commercial insurance
       Overtime & Shift Premiums
       Paid Breaks (1 paid 15 min break each day (M-F) = approximately 65 hours a year!)
       Health Care Benefits
       Sick Days & Personal Days
       Holidays & Vacations
       Retirement Plans/401 K
       Human Resource Management Cost


To simplify for the purpose of this example an employee earning an $8.50 per hour wage would
conservatively average approximately $15.00 of Burden Labor Cost.

The following is an example of that single person manual operation running 3 shifts, 5 days per
week for one year and does not take into account for any shift premiums:

	                             	      $15.00    Burden Rate per Employee
Multiply by hours per shift	       x   8
			      $120.00  Burden of 1 person for 1 shift
Multiply by number of shifts             x   3
			      $360.00  Burden of 1 person 3 shifts per day
Multiply by workdays per week       x   5
                                                	  $1,800.00  Burden of 1 person, 3 shifts, 5 days
Multiply by weeks per year                x  52
                                              	$93,600.00  Burden of 1 person, 3 shifts, 1 year


To calculate the months of return on investment divide the capital equipment cost by 1/12 of the
Annual Burdened Labor Cost.

		Months ROI = $ Cap. Equip. / (Annual Burden/12)

Example: An $80,000 Robotic Work Cell performing the function of above Burden calculation would
look like this:

		$80,000.00 / ($93,600.00/12) = 10.25 Month ROI !!!

Note: This is a general calculation and does not take into account improved quality, increased
performance, power consumption, maintenance, depreciation and other minor factors.

While the ROI will vary from application to application one thing will remain constant;
URI has the ability to improve you process and profitability at a price you can afford!