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The decision to invest in machinery is often made based on intuition, whether it's necessary or not. However, calculating the return on investment in glass processing machinery is relatively easy because the profit items are measurable.
Where does the income come from?
There are four components. If you don't factor them all in, the investment will seem unnecessarily expensive.
1. Elimination of subcontracting costs.
If you're providing a calculation, that's a directly measurable item.
Bill: Monthly outsourced linear meters (or units) × unit subcontracting price = monthly subcontracting cost.
This is the clearest part of the story — it's already written on your bills.
2. Fire reduction
This is often overlooked, but it's frequently the biggest factor. Fire comes from two places:
- Fracture due to transportation: Sending the glass out and bringing it back in means two extra handling operations each time.
- Waste due to processing: Uncontrolled process parameters (see. cracking in glass drilling) And insufficient edge preparation.
Bill: (Current waste rate - target waste rate) × monthly processed m² × glass cost per m².
Caution: Waste is not just the cost of the glass material. The cutting, processing, and labor involved in producing that sheet are also wasted. The true cost of waste is significantly higher than the price of the raw glass.
3. Labor and handling
Outsourcing work requires shipment preparation, tracking, and acceptance testing. In-house production eliminates these invisible tasks.
Bill: Monthly hours spent × hourly labor cost.
4. Deadline and missed work.
The most difficult to measure, but strategically the most important item. Outsourcing reliance extends your delivery times; orders lost due to long delivery times directly translate into lost revenue.
Even if you can't fully digitize this item, you can still take it into account. as a note Add it — it carries weight when making decisions.
Sample spreadsheet
Fill in the table below with your own data:
| Pen | Monthly amount |
|---|---|
| Subcontracting costs (eliminated) | — |
| Fire reduction gain | — |
| Labor/handling savings | — |
| Total monthly earnings (A) | — |
| Electricity + water consumption | — |
| Sarf (diamond set/stone) | — |
| Operator cost | — |
| In exchange for maintenance | — |
| Total monthly operating expenses (B) | — |
| Net monthly earnings (A − B) | — |
Payback period (months) = Total investment ÷ Net monthly earnings
The total investment includes not only the cost of the machinery, transportation, installation, electrical/water infrastructure and training Add your pens too.
Other factors to consider
Capacity increase: If the machine solves your existing bottleneck, the gain is not just savings. additional turnoverWait. But first, confirm if the bottleneck is really there. Our article on line balancing It provides guidance on this matter.
Spare parts and service: Waiting times for parts on an imported machine can be weeks. factor in the daily cost of the downtime.
Machine lifespan: Glass processing machines can operate for many years with proper maintenance. Compare this lifespan to their payback period.
Decision threshold
The common practice in the sector is that an investment is considered logical if the payback period falls within a reasonable range. However, the real question is not the time period itself, but this: What jobs will you be unable to get in the coming years without this machine?
To calculate using your own data Contact us; Let's evaluate this together, taking into account your monthly capacity and subcontracting costs.
