Automating Your Data Collection

Benefits of automating your data collection

1. Improves the quality of the data you collect
   1. Incorrect data is expensive
   2. Incomplete data can defeat the purpose of collecting it in the first place
2. Reduces the cost of acquiring the data
   1. Saves money – Pay employees to perform the job you hired them for, not to gather data
   2. Saves time – Less time collecting data is more time to produce = greater output per shift
3. Increases the amount of data available to you
   1. You need data to make good decisions – make sure you have it
4. Leverages the software you already own
   1. Has your substantial investment in an ERP system turned into a really expensive accounting package because it is too hard to get data into it to use all the features available?

The following examples and models are designed to help you calculate the expected benefits from an automated data collection project. We focus on the reduced cost in acquiring data only.

Also note that this only captures of the benefit of automated collection over manual collection (pen and paper). If you are not already collecting data, the benefits are significantly higher. See “Data Drives Better Decisions Leading to Higher Profitability and Sales” here.

Automated Data Collection Benefits Analysis for Manufacturers

The following are examples representative of projects we’ve worked on with our customers. Downloadable Excel spreadsheets follow to allow you to customize the calculations to your business. Please contact us if you would like assistance modifying the analysis.

Material and Throughput Tracking:

In this example, we are looking at the benefits of automating work in process (WIP) and finished goods (FG) tracking during the production process (often called work order tracking). Automating also creates the opportunity to get full serialization and traceability on your products.

Typical equipment used includes ERP Data Entry Appliances, RFID read stations, RFID portals, handheld barcode/RFID scanners, fixed barcode readers, scales, and dimensioners.

Get the Excel Model! Material Tracking Automation Project ROI and Payback Model

Material and Throughput Tracking
Workcells Processing Capacity	10 x 50 bins / day
Transactions Manual Data Collection Time	500 bins / day x 3 minutes / bin
Transaction TimeWorker Wage	1500 minutes / day = 25 hours / day x $15 / hour
Labor Savings Yearly Operating Period	$375 / day x 250 days
Annual Labor Savings:	$93,750.00

Automated System Payback Analysis
Cost of Project Daily Benefit	< $50,000 ÷ $375
Payback Period:	134 Business Days

Automated System ROI Analysis
Years After Project Interest Rate	1 3.00
Return on Investment:	185%

Labor Tracking

In this example, we are looking at the benefits of automating labor tracking. These systems link the hours of each employee to a specific job and get that data directly into your existing ERP system. The same system is often used to collect WIP and/or FG.

Note: There are many time card and time management solutions out there to choose from. The advantage of the Element ID solution is cost. Data goes directly from the input terminal to your existing ERP software with no middleware or ongoing license fees. Additionally, the labor system is often combined with a Work Order tracking solution running on the same appliance.

Get the Excel Model! Labor Tracking Automation Project ROI and Payback Model

Labor Tracking
Manufacturing Employees Typical Jobs per Day (each)	50 x 5 jobs / day
Transactions Manual Data Collection Time	250 jobs / day x 3 minutes / job
Transaction TimeWorker Wage	500 minutes / day = 8.3 hours / day x $15 / hour
Labor Savings Yearly Operating Period	$175 / day x 250 days
Annual Labor Savings:	$31,250.00

Automated System Payback Analysis
Cost of Project Daily Benefit	< $20,000 ÷ $125
Payback Period:	160 Business Days

Automated System ROI Analysis
Years After Project Interest Rate	1 3.00
Return on Investment:	155%