[xls]value analysis / cost justifcation spreadsheet files/automation_justification.xls · web...

Go Through The Entire Workbook, Sheet By Sheet and Enter Data Using The Following Rules:

If You Don't Know An Exact Value For A Field Put In Your BestEstimate, Then Let The Customer Update It If Necessary

- You Must Enter Data In The Light Green Boxes

- You Can Enter Data (or Replace Data) In The Light Yellow Boxes

- The Fields With No Shading Are Automatically Calculated - DO NOT ENTER DATA!

Select Boxes with a Triangle in the corner to read comments describing the contents to be entered into the box, or describing the meaning of the box.

D10

Select Boxes with a Triangle in the corner to read comments describing the contents to be entered into the box, or describing the meaning of the box.

Application Description

Proposal 10xxxx

Page 1 of 9The information contained herein is proprietary and confidential, and should not be shared outside "nickname" 05/06/2023 - 18:28:23

Insert Customer LogoIn This Area

Financial Inputs

Robotic System Investment $160,000

Installation $5,000 Robotic Systems Training $0 Internal Labor for Startup and Debug $2,500 Production Support/Service Contracts $0

Combined State and Federal Income Tax Rate 35.0%

Corporate Hurdle Rate for Investment Decisions 33.0%

Capital Evaluation Duration In Years (Enter "5" or "7") 5

Corporate Discount Factor / Weighted Average Cost of Capital 6.0%

Corporate Payback Period (Months) for this Application 24

(Total system price including all robots, peripheral equipment, controls, engineering, build, set-up & run-off at FANUC Robotics, and installation supervision at end users)

Plant Startup Expenses (if not included in Robotic System Investment)

F8

This is the Base Bid Systems Price Without Options

F17

Use 40% if Actual Rate Is Not Known

F19

This is the Customers Minimum Required Rate of Return For Projects

F21

Enter "5" or "7" for the duration in years of the evaluation

F23

This is the Interest Rate The Customer Pays For Funds

F25

This is The Maximum Amount of Time The Customer is Willing to Wait For Their Payback


Proposal 10xxxx

Page 2 of 9The information contained herein is proprietary and confidential, and should not be shared outside "nickname"

05/06/2023 - 18:28:23


Labor Savings

Current Number of Laborers per Shift: 2 Operators 1

Maintenance 0 Technicians 0 Material Handlers 1

Robotic System Number of Laborers per Shift: 1 Operators 0

Maintenance 0 Technicians 0 Material Handlers 1

Number of Shifts: 2

Annual Hours Per Laborer 2,000 Production Hours Per Day 8

Production Days Per Week 5 Production Weeks Per Year 50

Current Annual Labor Hours: 8,000 Robotic System Annual Labor Hours: 4,000 Annual Labor Savings (Hours): 4,000

Operators $20.00 Maintenance $0.00 Technicians $0.00 Material Handlers $20.00

Current Annual Labor Cost: $160,000 Robotic System Annual Labor Cost: $80,000 Annual Labor Savings (Dollars): $80,000

Annual Lost Time and Disability Savings: $4,000 Annual Average Percentage Rate: 5%

Burdened Hourly Rate for Laborers:

F32

Burdened Rates. Includes Benefits, Overhead, Etc...

F42

Use 5% if Actual Rate is Not Known


Proposal 10xxxx



Preventive Maintenance (PM) Labor Cost

Total Additional Number of PM Personnel Assigned: 0

Burdened Hourly Rate for PM: $0.00

Number of proposed FANUC Robots In System: 0

Proposed PM Man-Hours per Year 0 Number of Robots * 4 Hrs. per Quarter * 4-Quarters 0

Yearly Peripheral Equipment Estimate 0

Annual PM Labor Savings: $0

H10

Burdened Rate Includes Benefits, Overhead, Etc...


Proposal 10xxxx



Production Increase

Current Systems Annual Production 228,000 Production Rate Per Hour 60.0 Total Available Production Hours Per Year 4,000 Less Daily Scheduled Downtime (lunches, breaks, etc. - hrs) 0 Less Annual Unscheduled Downtime (avg. percentage) 5.0% (200)Less Annual Change-Over (hours) 0 Net Annual Production Hours 3,800

FANUC Robotics Proposed Systems Annual Production 280,000 Production Rate Per Hour 70.0 Total Available Production Hours Per Year 4,000 Less Daily Scheduled Downtime (lunches, breaks, etc. - hrs) 0.00 0 Less Annual Unscheduled Downtime (avg. percentage) 0.0% 0 Less Annual Change-Over (hours) 0 Net Annual Production Hours 4,000

Increased Annual Production 52,000 Price Per Unit $25.00

Increased Annual Revenue $1,300,000


Proposal 10xxxx



Scrap Reduction Savings

Current Systems Annual Scrap 38 Scrap Rate 1.0%Net Annual Production Hours (Current System) 3,800

FANUC Robotics Proposed Systems Annual Production 20 Scrap Rate 0.5%Net Annual Production Hours (FANUC Robotics System) 4,000

Increased Annual Production 18 Price Per Unit $25.00

Scrap Reduction Savings $450


Proposal 10xxxx



Miscellaneous SavingThis Sheet To Be Used For Unique Savings Opportunities Specific To Your Application (Modify As Required)

Miscellaneous Saving #1 $0



Total Miscellaneous Savings $0


Proposal 10xxxx Page 7 of 9The information contained herein is proprietary and confidential, and should not be shared outside "nickname"

05/06/2023 - 18:28:23


Annual Savings Summary

Operator Labor Savings : $80,000

Lost Time and Disability Savings : $4,000

$1,040

System Preventive Maintenance: $0

Production Increase Value: $1,300,000

Scrap Reduction Savings: $450

Miscellaneous Savings: $0

Total Annual Profit Increase: $1,385,490

Workers Compensation Premiums ($1.3 per $100 of payroll)


Proposal #10xxxx

Page 8 of 9The information contained herein is proprietary and confidential, and should not be shared outside "nickname"

05/06/2023 - 18:28:23


Investment Summary

Total Initial Investment: $167,500

Total Annual Profit Increase (Before Income Taxes): $1,385,490

Weighted Average Cost of Capital / Discount Factor: 6.0%

Corporate Hurdle Rate: 33.0%

5 Year IRR Generated From Project: 544.6% (True Interest Return Generated by the Project)(If IRR > Hurdle Rate, Accept the Project)(If IRR < Hurdle Rate, Reject the Project)

5 Year NPV: $3,675,412 (Present Value of Net Annual Cash Flows)(IF NPV > $0, Accept the Project)(IF NPV < $0, Reject the Project)

Payback In Months (Before Income Taxes): 1.5


Proposal 10xxx



Today (Year 0) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 5 Year (-) (167,500) 0 7 Year (-) 0 0 Total Equipment Investment (167,500) 0 0 0 0 0 0 0 Cash Flow Data: Operator Labor Savings 80,000 80,000 80,000 80,000 80,000 80,000 80,000 Annual lost time and disability savings 4,000 4,000 4,000 4,000 4,000 4,000 4,000 Workers Comp Premiums 1,040 1,040 1,040 1,040 1,040 1,040 1,040 System Preventive Maintenance 0 0 0 0 0 0 0 Increased Annual Revenue (Production Increase) 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 Scrap Savings 450 450 450 450 450 450 450 Miscellaneous Savings 0 0 0 0 0 0 0 Equipment Depreciation (-) (33,500) (33,500) (33,500) (33,500) (33,500) 0 0 Net Pre-Tax Profit: 1,351,990 1,351,990 1,351,990 1,351,990 1,351,990 1,385,490 1,385,490

Income Taxes @ 35.0% (473,196) (473,196) (473,196) (473,196) (473,196) (484,921) (484,921) Add Depreciation (+) 33,500 33,500 33,500 33,500 33,500 0 0 Net Annual Cash Flow (after tax): (167,500) 912,294 912,294 912,294 912,294 912,294 900,569 900,569

Cumulative Cash Flow: (167,500) 744,794 1,657,087 2,569,381 3,481,674 4,393,968 5,294,536 6,195,105 Weighted Average Cost of Capi 6.0% 1.00000 0.94340 0.89000 0.83962 0.79209 0.74726 0.70496 0.66506 Present Value of Annual Cash Flo (167,500) 860,654 811,938 765,979 722,622 681,719 634,865 598,929 Cumulative Discount Cash Flow (167,500) 693,154 1,505,092 2,271,071 2,993,693 3,675,412 4,310,277 4,909,207

Time Period NPV IRR5 Years ### 544.6%7 Years ### 544.7%

0.18 Years After Tax Payback

G37

Net Present Value is The Value Of Future Cash Flows Today.

H37

Internal Rate of Return is when the net initial investment cash outflows = the present value of the incremental net cash inflows

H40

The Payback Period is the amount of time it takes to recoupe our initial investment


Proposal 10xxx


Financial Analysis(continued)

NOT FOR CUSTOMER PRESENTATIONPayback 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Calculation Detail: 0.1836 0.00 0.00 0.00 0.00 0.00 0.00

Formula Checks: 0 (Should = 0 ) 0

0 (0)

IRR 7YR Err:523 5.0816 GUESS 0.50 0.50

Depreciation Rates: 0.2000 0.2000 0.2000 0.2000 0.2000 0.0000 0.0000 0.0000 (Straight-Line - Change if Applicable)

Formula Checker

Should = 0Deprec. Deprec. Deprec. Deprec. Deprec. Deprec. Deprec.

Investment Year 1 (33,500) (33,500) (33,500) (33,500) (33,500) 0 0 0.0000 Investment Year 2 0 0 0 0 0 0 0.0000 Investment Year 3 0 0 0 0 0 0.0000 Investment Year 4 0 0 0 0 0.0000 Investment Year 5 0 0 0 0.0000 Investment Year 6 0 0 0.0000 Investment Year 7 0 0.0000

Total Depreciation (33,500) (33,500) (33,500) (33,500) (33,500) 0 0

Inflation Factors Enter Rate 0.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

[xls]value analysis / cost justifcation spreadsheet files/automation_justification.xls · web...

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