| 1 | Match throughput to the production line | Confirm bags, cases, cartons, or trays per minute; product dimensions; pallet pattern; stacking height; and planned production growth. | 20–60 cases per minute for many conventional robotic or layer-palletizing applications, depending on payload and pattern. | Oversizing equipment by 30% may add approximately $20,000–$80,000 to the purchase price without improving current output. | Require a documented acceptance test at the agreed production rate using representative products and pallets. | Calculate annual recovered capacity: additional units per hour × operating hours × contribution margin. |
| 2 | Compare total ownership cost, not only purchase price | Request a five-year cost model including equipment, tooling, freight, installation, training, utilities, preventive maintenance, spare parts, and downtime. | Five-year operating and service costs commonly represent 25%–60% of the initial equipment investment, depending on complexity and utilization. | For a $180,000 system, a reasonable five-year ownership estimate may be $270,000–$390,000. | Separate one-time costs from recurring costs and identify which items are excluded from the quotation. | TCO per pallet = total five-year ownership cost ÷ pallets produced during five years. |
| 3 | Evaluate labor savings realistically | Count current palletizing staff, shifts, overtime, injury-related absence, supervision, and the number of employees required after automation. | A semi-automatic or robotic solution may reduce direct palletizing labor by approximately 1–3 full-time positions per shift, subject to local workflow. | At a fully burdened labor cost of $22 per hour, removing one position from two shifts may save about $91,500 per year before redeployment costs. | Confirm whether employees can be reassigned to loading, quality inspection, or material handling rather than eliminated. | Annual labor benefit = avoided labor hours × fully burdened hourly rate. |
| 4 | Check payload, reach, and pallet-pattern flexibility | Verify maximum product weight, end-of-arm tooling capacity, reach, pallet size, layer count, mixed-SKU requirements, and changeover procedure. | Allow a minimum 10%–15% payload margin above the heaviest product and confirm every required SKU during factory testing. | Additional tooling or pattern hardware may cost $5,000–$25,000 per configuration. | Ask for changeover time; a target of 15 minutes or less is useful for frequent product changes. | Measure increased line flexibility through reduced changeover minutes and higher available production hours. |
| 5 | Use realistic availability and downtime assumptions | Review guaranteed availability, mean time between failures, mean time to repair, planned maintenance hours, and jam recovery procedures. | For a properly integrated system, target technical availability of approximately 95%–98%, excluding upstream material shortages. | A 1% availability loss on a line producing 40 cases per minute for 4,000 hours annually equals about 9,600 cases of lost capacity. | Require alarm history, remote diagnostic capability, spare-parts response times, and a defined escalation process. | Downtime cost = lost production units × contribution margin per unit + recovery labor and logistics costs. |
| 6 | Assess integration and safety requirements | Confirm interfaces with conveyors, stretch wrappers, pallet dispensers, warehouse systems, barcode readers, guarding, interlocks, and emergency stops. | Budget approximately 10%–25% of machine purchase price for integration, guarding, site preparation, and commissioning. | For a $180,000 machine, integration may add approximately $18,000–$45,000. | Obtain risk assessment documentation and verify compliance with applicable local machinery, electrical, and workplace safety requirements. | Include avoided manual-handling incidents, lower rework, and reduced line interruptions in the benefit model. |
| 7 | Compare energy and consumable usage | Request connected load, average operating load, compressed-air consumption, lubricant requirements, stretch-film usage, and standby consumption. | Many electrically driven systems operate within approximately 3–15 kW average demand, excluding auxiliary equipment. | At $0.12 per kWh and 4,000 operating hours per year, a 10 kW average load costs about $4,800 annually. | Check whether air quality, pressure, filtration, and electrical supply requirements are compatible with the site. | Annual utility cost = average kW × operating hours × local electricity rate, plus compressed-air cost where applicable. |
| 8 | Verify local service and spare-parts support | Ask where technicians are located, typical response time, critical spare-parts stock, remote support hours, and training availability. | For production-critical equipment, target remote response within 4–8 hours and on-site support within 24–72 hours, depending on region. | An annual preventive-maintenance contract may cost approximately $6,000–$18,000, excluding major repairs and travel. | Define service-level agreements, parts-obsolescence notification, travel charges, labor rates, and warranty exclusions in writing. | Compare the expected annual service cost with the financial impact of one additional day of unplanned downtime. |
| 9 | Calculate installation, training, and ramp-up time | Confirm delivery terms, import duties, foundation work, factory acceptance testing, site acceptance testing, operator training, and production ramp-up. | Typical installation and commissioning may require 3–10 working days, depending on line complexity and site readiness. | Lost production during a five-day shutdown at a contribution margin of $2,000 per hour could exceed $80,000. | Use a detailed project schedule with responsibilities for utilities, drawings, permits, product samples, operators, and maintenance personnel. | Ramp-up loss = planned downtime hours × normal contribution margin per hour. |
| 10 | Set a measurable payback and ROI threshold | Model labor savings, increased throughput, quality improvement, reduced damage, lower injuries, maintenance, energy, financing, and residual value. | Many buyers target a simple payback period of approximately 2–4 years, subject to capital policy and production stability. | Example: $115,000 annual operating benefit minus $25,000 annual ownership cost equals $90,000 net annual benefit. | Use conservative, expected, and optimistic scenarios; do not base approval solely on the supplier’s best-case output claim. | Simple ROI = (annual net benefit ÷ total initial investment) × 100%; payback = initial investment ÷ annual net benefit. |