How to Measure ROI for Robotics Training

Imagine that the automation engineer has to perform the programming task once a day, and it takes her 10 minutes each time. The 30-to-1 rule says that it will take the automation engineer 30 times longer to train the line worker to perform the same task to the same level of skill. This would mean 5 hours of training. Over one year (250 working days), the automation engineer herself would spend almost 42 hours on the programming task. Therefore, the ROTI of such a training program is 37 hours per year (42 minus 5 hours). These are 37 hours that she could spend developing new robotic applications.

To turn this into an economic ROTI, use the following equations:

Training Cost = Training Time x (Trainer Hourly Salary + Trainee Hourly Salary)

ROTI = ROTI in Hours x (Trainer Hourly Salary – Trainee Hourly Salary) / Training Cost x 100%

For our example, if the automation engineer earns $49 per hour and the line worker earns $19 per hour, the ROTI would be:

Training Cost = 5 hours x ($49 per hour + $19 per hour) = $340

ROTI = 37 hours x ($49 per hour – $19 per hour) / $340 = 326%

As a ROTI calculation, this use of the 30-to-1 rule is extremely rough.

For example, it doesn’t take into account the economic benefit of the automation engineer having an extra 37 hours to develop new applications. It’s also not applicable to training sessions that involve more than simple delegation.

However, it’s quick, and you don’t need to gather a lot of data to complete it.

The economic metrics way

The more accurate method for measuring ROTI uses the same basic equation:

ROTI = Change in Cost of Activity / Total Cost of Training x 100%

Here’s how to evaluate the change in cost of activity:

  • Choose economic metrics that will be affected by the robotics training.
  • Measure these metrics before your robotics training program begins.
  • Continue to measure these metrics throughout the training program and after it ends.
  • At any time, calculate the total change in cost of activity by summing the changes in each metric.

To calculate the total cost of training, use the tools provided in Module 3 of our learning program.

The simple process for selecting the right metrics

Here at Robotiq, we want to make it as easy as possible for you to start training your own team of in-house robotics experts.

That’s why we’ve created a series of eBooks to help you out. We’ve taken key business skills and applied them to robotics.

The result is a clear, straightforward process you can apply to your own business right away.

The eBooks are arranged into 10 modules starting with module 1. Together they guide you through the whole process of developing a robotics team, from assessing your business needs, to implementing your training program, to measuring the effectiveness of the program.

Module 8 is available to download right now. This hands-on worksheet shows you how to apply metrics to measure the effectiveness of your in-house robotics training program.

First, design and launch your training program

If you haven’t already, you should definitely check out our in-house robotics expertise modules. They guide you step-by-step through the whole process of implementing a successful robotics training program. They discuss why you need in-house robotics expertise, how to assess the robotics needs of your business, how to get the team on board, and how to build an effective training program.

Related: Digital Transformation Is No Longer a Choice

Next, apply metrics to your training program

Module 8 guides you through the process of picking and implementing metrics. At the end of the module you will have chosen the right metrics for your business, as well as the most suitable ways of measuring them.

There are three steps to this process:

  1. Select the right metrics—The module provides 100 metrics for you to choose from and identifies 29 of the most relevant metrics for a manufacturing business.
  2. Select the right measurement methods—You and your team will choose the most suitable measurement methods for these metrics and identify which stakeholders will be involved (Module 4 describes how to identify stakeholders).
  3. Include the metrics in your regular meetings—As part of the training program, you will hold regular meetings with the key stakeholders in your team. This module provides a framework to assess and discuss your chosen metrics. You can then use these assessments to improve your training program.

Remember the maxim “What gets measured gets done.” Even one or two quality metrics can help you quantify the ROI of your robotics training.

For more trends in robotics, visit the Robotics & AI Channel.