laserspeed: calculate your roi

The Business Case for Non-Contact Length & Speed Measurement

Measuring ROI

Non-Contact Laser MeasurementNon-Contact Laser Encoder

Today’s Speaker

Chief Engineer, LaserSpeed Veteran of high-tech

measurement & controls industry

BSEE, Mini MBA 6 Patents 30 yrs experience with

Laser Doppler InterferometersLes Jenson, Beta LaserMike


Presentation Overview LaserSpeed technology review How accurate non-contact length and speed

measurements create real business value? What are the direct and indirect benefits of non-

contact laser measurement? What the business case looks like in financial

terms? What data you can show management to help you

win your case? Conclusion Questions


Technology Review

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Laser Doppler Velocimetry (LDV Theory)


Introduction Initial purchase price of measurement

system should not be the only selection factor

Need to consider the Total Cost of Ownership (TCO)

Contact-type encoders have a low, initial price point But, provide 0.5% or greater

measurement accuracy There are a number of hidden costs from

measurement inaccuracy that directly affect production efficiencies and bottom line

Non-contact method is the ideal length & speed measurement solution


Understanding the Path to Enhancing TCO and Delivering ROI

Direct Benefits Cost savings and cost

structure Indirect Benefits

Competitive advantages

Benefits from implementing LaserSpeednon-contact length & speed encoder


Direct Benefits

Tachometers/wheel encoders make physical contact with product

Prone to slippage Reports more or less product than

actually is LaserSpeed uses non-contact

laser measurement approach +/-0.05% accuracy, +/-0.02%

repeatability Precisely tracks product length and

speed

Reduce Product Shortages and Overages


Direct Benefits

Contact encoders can create in-process issues with production & finishing operations

LaserSpeed high measurement accuracy tightly controls: Continuous length Product positioning Cut-to-length Printing & coating applications

Product processed to exact production and customer requirements

Decrease Product Waste

Higher accuracy means fewer manufacturing issues that require costly rework and less waste


Direct Benefits

Contact measurement systems can mark or damage product

LaserSpeed does not make contact with product

Eliminates any potential product defects

Manufactures can better control quality and meet customer quality expectations

Increase Product Quality


Direct Benefits

Contact encoders are mechanical devices with moving parts

Require regular servicing and recalibration

LaserSpeed is factory calibrated and has no moving parts to wear out

100% solid-state digital technology Minimizes need to replace parts

and recalibrate system

Cut Down Maintenance


Direct Benefits

Servicing mechanical contact encoders for maintenance or recalibration = production downtime

Downtime is money LaserSpeed LDV technology

eliminates mechanical failure issues

Factory calibration ensures high dependability, maximizing uptime

Minimize Downtime


Direct Benefits

Compared to mechanical contact encoders: Improved system reliability

Consistent, reliable performance Increased productivity

Dependable measurements over long term

Lower operating costs Reduced set-up time & calibration

Lower maintenance costs Non-contact gauge & no moving

parts

Lower Overall Cost of Ownership


Indirect Benefits

Highly competitive marketplace Need for competitive edge Implementing LaserSpeed

Communicates to customers you’ve invested in the most advanced technology

Market production capabilities and services over competition

Places high priority on quality control for highest quality products

Leverage LaserSpeed as Competitive Differentiator

LaserSpeed certifies product length and speed with laser precision


Indirect Benefits

Demand to meet production, quality, and delivery requirements

Goal is to strengthen the customer-vendor relationship

Key is to closely control customer expectations and product outcome

LaserSpeed gives you precise control of product length and speed

Meet Customer Procurement Requirements


Indirect Benefits

LaserSpeed provides dependable, repeatable measurements and requires little employee interaction

Translates into certain worker and production efficiencies

Increased worker productivity Performing jobs in less time Avoiding overtime Avoiding cost of hiring additional

employees

Increased Worker Productivity


What Does the Business Case Look Like in Financial Terms?

Current encoder accuracy Current line speed Cost per unit length of material Hours of operation per day Days of operation per year

Formula to calculate savings and ROI

Accuracy x Line Speed x Product Cost x Operation Time per Year = $ Cost Savings



Profile: Manufacturer of rolled goods Problem: Control line speed of trim line

and reduce scrap. 1% to 2% measurement error due to tachometer slippage, mechanical wear, tension changes from friction, and web breaks. Downtime from recalibration.

Production Parameters: Current encoder accuracy – 1.5% Average line speed – 210 ft/min Operation – 22 hours/day, 355 days/year Product cost -- $0.06/ft

Calculating Savings: Case Study



Production Parameters: Current encoder accuracy – 1.5% Average line speed – 210 ft/min Operation – 22 hours/day, 355 days/year Product cost -- $0.06/ft

Encoder Inaccuracy Cost:


0.015 x 210 x 60 x 22 x 355 x $0.06 = $88,500/year

(Total give-away or scrap per year)



Solution: LaserSpeed non-contact encoder (+/-0.05% accuracy, +/-0.02% repeatability)

Manufacturer’s ROI was realized in less than two months

Results: Higher cut-to-length accuracies from direct laser

measurement Reduced significant amount of scrap Decreased costly downtime to recalibration


(0.015 -.0005) x 210 x 60 x 22 x 355 x $0.06 =

$85,613/year (Total savings)



Hard to define Have to look at your own application:

How often do you stop your line How often do you calibrate your

measurement system How often do you perform maintenance

and replace parts How often do you replace encoders Etc.

Add these indirect costs to your direct costs

This will give you TOC

Indirect Costs


ROI Calculator Calculate your own savings

at: www.laserspeedgauge.com

LaserSpeed website is a great resource with helpful tools

Homepage > Industry > Calculate ROI tab


ROI Calculator


Conclusion Important for manufacturers to look at

proven ways to increase productivity, product quality, and bottom-line

Implementing a highly accurate length and speed measurement system is key

The LaserSpeed non-contact encoder has been proven on many types of manufacturing processes

Result is precision length and speed measurements for today’s quality-driven manufacturers


Product & Contact Information

www.laserspeedgauge.comwww.laserspeed.eu

USA: +1- 937-233-9936UK: + 44 1628 401510Germany: +49(0)231 758 93 0Asia: +86 21 6113 3688

eMail: [email protected] Jenson: [email protected] Luis: [email protected]

laserspeed: calculate your roi

Technology

physical contact

line noncontact method

maintenance contact

product length

damage product laserspeed

product prone

measurement inaccuracy

recalibration laserspeed