roi calculations

Return on Investment Calculations

Balluff Worldwide

Company Overview

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Balluff’s Core Business Offering the most comprehensive lines in the

Automation Industry!Our RFID Technology was developed as a result of our

inductive expertise.

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About Balluff

We are Global

Worldwide manufacturing, sales and service operations.

Ability to deliver consistent, excellent service across the globe.

2,400 Employees53 Subsidiaries/Representatives7 Manufacturing Locations

Balluff Worldwide Sales

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Industrial IdentificationRFID Tool Management Process

Machine tool

Machine tool

Tool lifemonitoring

Tool crib

Presetter

New tool

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The Process of Manual Tool Management

Operator enters data into Machine Controller

Load Tool into changer

Transport to Machining Centers

OperatorReads Tool data

and offsets

Potential

Problem Area

“1 error in 300 [keystrokes] in a manual entry mode” *

Possible Loading Error

* Kinkade, James D., “Using Automatic Identification Technologies for Logistic Support on Battlefields of the Future”, Thesis, Naval Postgraduate School, March, 1996.

Machine Center Side

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The Estimated Cost of Implementation

Cost of

RFID chips for tool holder$40

Cost of

Machining Center Upgrade$10,000

Cost of

New Presetter$75,000

Cost ofPresetter Upgrade

$4,000

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Industrial IdentificationRFID Tool Management Process

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The Process of Automatic Tool Management

Assemble New Tool

Measure Tool

Transport to Machining Centers

Document Offsets

Reasons for new tool are known…• Tool crash• Broken Tool• Normal wear• Excessive wear

Tool Room Side

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The Process of Automatic Tool Management

Load Tool into changer

Transport to Machining Centers

Machining Center reads tool information

Machine Center Side

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The Process ImprovementsExample: Information Tracked with each tool

Tool Status bits Tool in Use Tool Life pre-alarm Tool Life Expired Tool is broken Tool is locked Tool is in spindle Tool life deactive Tool has oversize

Data Value

Line Number (were tool is used) Head Line 4

Machine Number C21

Pocket Number 18

Tool Number TP305

Tool Serial Number 8397739

Geometric Tool Length 25.725

Geometric Cutter Comp. 35.225

Wear Tool Length -4.200

Wear Cutter Comp. 6.010

Tool Life max Counts 150

Tool Life warning Counts 125

Tool Life Remaining Counts 85

Preset Date (Time, Day Month, Year) 17:35, 20, 02, 06

Installed in Machine (Time, Day Month, Year) 15:22, 20, 02, 06

Removed (Time, Day, Month, Year 08:18, 18, 02, 06

Serviced (Time, Day Month, Year) 10:27, 18, 02, 06

Cycle Count 3066

Test Tool (Yes/No) No

Initial Comments None

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Industrial IdentificationRFID Tool Management Process

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Machine Tool

Cutting, chipping or grinding of metal requires rugged and reliable sensors

Ultra reliable RFID systems track tool data such as tool type, pre-setter offsets and usage history

Balluff Tool RFID guarantees 100% reliable every time due to our approach of doing double Reads or Read and Writes at each step in the process.

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The Process Improvements

Automatically track tool usage issuesEliminate possible misleading reporting

• Tool crash• Broken Tool• Normal wear• Excessive wear• Lost Tool Tracking• Machining Traceability

• Operator setup• Recurring setup problem• Base-line wear• Using the right tool• Proper Tool Processing Validation

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ROI Calculator

• Link to ROI Spreadsheet