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Home > Industry News > Posts > Rockwell Automation’s New Calculator Tool Provides ROI Estimates for Safety Automation
December 19

Rockwell Automation’s New Calculator Tool Provides ROI Estimates for Safety Automation

Keywords: ROI Tool, Potential Savings, Productivity Gains, Investments In Safety, Equipment Effectiveness, Capital-Asset Depreciation.

Rockwell Automation introduced a free Safety Return on Investment (ROI) Tool with J.B. Titus, a machine safety consultant and owner of J.B. Titus & Associates.  The new Web-based tool addresses manufacturers' need for a way to help quantify potential savings and productivity gains from new investments in safety.  The tool is aimed at engineers, plant managers and environmental health and safety (EH&S) professionals to help calculate the potential annual return they'll receive if they invest in an integrated safety automation system. 

At its core, the Safety ROI Tool relies on a basic calculation: benefits divided by costs equals ROI.  To help simplify the process of assessing those costs and benefits, the tool combines injury and productivity data and collects input from users in five categories:

  • Estimated project amount, i.e., cost of controls, software, installation and training
  • Overall equipment effectiveness (OEE), based on increases in machine availability because of reduced unscheduled downtime and increases in manufacturing output
  • Increased capital-asset depreciation
  • Direct injury costs, i.e., medical expenses, wages and worker's compensation costs
  • Indirect injury costs, i.e., regulatory noncompliance fines and 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.  Rockwell Automation aims to continuously update the tool to keep it relevant for users and plans to add a category for quality improvement.



















ARC Advisory Group


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