January/February 2012
Automation Update

Calculator provides ROI for safety automation

Engineers, plant managers, and environmental health and safety (EH&S) professionals now have a tool to calculate the potential annual return they will receive if they invest in an integrated safety automation system. Rockwell Automation developed the free Safety Return on Investment (ROI) tool in partnership with J.B. Titus. The web-based tool addresses manufacturers' need for a tool to help quantify potential savings and productivity gains from new investments in safety.

At its core, the Safety ROI tool relies on a basic calculation: benefits divided by costs equals ROI. The tool combines injury and productivity data and collects input from users in five categories:

  • Estimated project amount
  • Overall equipment effectiveness, based on increases in machine availability because of reduced unscheduled downtime and increases in manufacturing output
  • Increased capital-asset depreciation
  • Direct injury costs
  • Indirect injury costs (regulatory noncompliance fines/repair costs)

The tool also allows users to adjust the ratio of indirect-to-direct injury costs from 1:1 to 14:1, or to enter zeros for indirect and direct injury costs, based on company requirements.

-News brief courtesy of Automation.com