Before purchasing automated food equipment, perhaps the biggest question you might have – how fast will I get my return on investment? Purchasing new food manufacturing equipment can be expensive, so it’s important to gauge when it will realize a return. Efficient and effective automated equipment eventually pays for itself, because of the valuable effort and output it produces, but when can companies expect to see returns?
In this article, we’ll explore how frozen food companies calculate ROI on equipment, specifically for industrial slicers. We’ll also dive into industrial cutting machines and factors that determine return. Knowing what ROI is and what determines the return can help companies budget and project their financial future. But first, let’s take a look at the benefits of automated food cutting machines in the prepared meals industry.
Benefits of Automated Food Cutting Machines
Automated food cutting machines, a.k.a. industrial slicers, are critical types of equipment in any prepared meal production line. Frozen food labels rely on this equipment to make high-quality products while meeting demand and outpacing competitors. Benefits of food cutting machines include improved worker safety, increased ingredient application rates, and ensured quality and consistency, especially when used in conjunction with other automated equipment.
Improved Worker Safety
Ingredient slicing is a dangerous industrial task – slicer blades can cause serious workplace injuries. However, automated slicers help eliminate this risk by improving worker safety. Quantum meat/pepperoni slicers cut meat and cheese ingredients automatically so that staff aren’t put in harm’s way. Quantum automated equipment also requires minimal staffing for restocking and maintenance, which further protects employees from food industry hazards. When employees know they’re safe, they can focus better on their tasks!
Increased Ingredient Application Rate
Automated meat slicers also significantly increase production rates compared to manual slicing and application. Quantum automated meat and cheese slicers can have production rates upwards of 6,000+ pizzas per hour, whereas manual slicing is much, much slower. The increased ingredient application rate alone transforms prepared meal assembly lines, allowing companies to meet high demand.
Ensured Quality and Consistency
Lastly, automated meat and cheese slicers ensure quality and consistency in assembly lines. These pieces of equipment cut and apply meats and cheeses the same way, every time. Quality and consistency are critical for maintaining a good brand reputation. Consistently cut and applied ingredients allow more products to pass QC, which ultimately saves companies time, effort, and resources.
We’ve discussed how automated equipment can save money and make money! Now, let’s focus on calculating ROI.
Calculating Equipment ROI
Luckily, calculating equipment ROI doesn’t have to entail some long and confusing equation. Quite simply, equipment ROI is the capital made or lost versus the monetary amount of the investment. Commonly, equipment ROI is calculated by dividing the realized gain or loss by the investment amount and multiplying that by 100, which yields a percent gain or loss. A positive ROI signals a profitable investment, while a negative ROI means the company took a loss.
Calculating ROI on equipment isn’t necessarily difficult – but making the initial investment can be. That’s why it’s imperative that when companies source new equipment, they take into consideration the factors that determine return. Next, we’ll explore these factors, using industrial cutting machines as an example.
Industrial Cutting Machines and Factors that Determine Return
Multiple factors determine equipment ROI, beyond the cost of the initial investment and any returns it realizes. Some of these factors include implementation, maintenance costs, and downtime. Calculating equipment ROI is more of an ongoing process to make sure that the equipment is still profitable. These factors are dynamic, meaning that their costs or ability to realize value can change over time, which is why calculating equipment ROI isn’t a one-time event.
Implementation
The implementation of industrial cutting machines and other automated equipment largely determines ROI. A brand’s ability to successfully integrate equipment significantly affects profit. Because Quantum automated food equipment has many customizable features to help meet production requirements, companies can use these features to create unique products while meeting demand. Automated slicer features like increased production speed, slice design, and thickness can help a brand quickly realize value.
Maintenance Costs
Maintenance costs and downtime are also features that affect ROI. The maintenance cost of a machine should be factored into calculating its ROI. If a machine needs more maintenance and upkeep, the cost of running it can outweigh the benefit of keeping it in use. Special parts, expensive cleaning equipment, and the time needed to maintain it add to the cost of maintenance. Most Quantum equipment models are washdown-compatible and are easily fixed in-house, making the equipment easier and much less expensive to maintain.
Downtime
Downtime is another factor that determines how companies calculate ROI on equipment. Downtime may be required for maintenance, or it may be due to failed equipment. In either case, downtime can be expensive, especially if it’s for a long time. Downtime means that the machines can’t make products, which means that the company can’t realize value. Time is money, so companies need to minimize downtime as much as possible. Reading customer reviews on equipment and manufacturers can help brands determine if a specific machine causes a lot of downtime. This way, certain equipment and manufacturers can be avoided in order to save money in the long run. Quantum equipment is the best in the business, and we’re dedicated to making dependable and durable automated food equipment to minimize downtime and costs associated with it.
Meet ROI Faster with Quantum
Quantum Technical Services is dedicated to making industry-leading equipment that quickly realizes ROI. By choosing our automated equipment, your company is investing in its future. Our quality machinery is unmatched in the industry and helps frozen meal brands realize returns quickly. A faster ROI is possible through higher output rates, improved consistency, and streamlined operations. Contact our team at Quantum today to implement automated food equipment that quickly produces a return!