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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
Non-Contact Laser MeasurementNon-Contact Laser Encoder
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
Non-Contact Laser MeasurementNon-Contact Laser Encoder
Technology Review
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ft
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fdV *
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Laser Doppler Velocimetry (LDV Theory)
Non-Contact Laser MeasurementNon-Contact Laser Encoder
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
Non-Contact Laser MeasurementNon-Contact Laser Encoder
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
Non-Contact Laser MeasurementNon-Contact Laser 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
Non-Contact Laser MeasurementNon-Contact Laser Encoder
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
Non-Contact Laser MeasurementNon-Contact Laser Encoder
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
Non-Contact Laser MeasurementNon-Contact Laser Encoder
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
Non-Contact Laser MeasurementNon-Contact Laser Encoder
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
Non-Contact Laser MeasurementNon-Contact Laser Encoder
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
Non-Contact Laser MeasurementNon-Contact Laser Encoder
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
Non-Contact Laser MeasurementNon-Contact Laser Encoder
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
Non-Contact Laser MeasurementNon-Contact Laser Encoder
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
Non-Contact Laser MeasurementNon-Contact Laser Encoder
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
Non-Contact Laser MeasurementNon-Contact Laser Encoder
What Does the Business Case Look Like in Financial Terms?
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
Non-Contact Laser MeasurementNon-Contact Laser Encoder
What Does the Business Case Look Like in Financial Terms?
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:
Calculating Savings: Case Study
0.015 x 210 x 60 x 22 x 355 x $0.06 = $88,500/year
(Total give-away or scrap per year)
Non-Contact Laser MeasurementNon-Contact Laser Encoder
What Does the Business Case Look Like in Financial Terms?
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
Calculating Savings: Case Study
(0.015 -.0005) x 210 x 60 x 22 x 355 x $0.06 =
$85,613/year (Total savings)
Non-Contact Laser MeasurementNon-Contact Laser Encoder
What Does the Business Case Look Like in Financial Terms?
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
Non-Contact Laser MeasurementNon-Contact Laser Encoder
ROI Calculator Calculate your own savings
at: www.laserspeedgauge.com
LaserSpeed website is a great resource with helpful tools
Homepage > Industry > Calculate ROI tab
Non-Contact Laser MeasurementNon-Contact Laser Encoder
ROI Calculator
Non-Contact Laser MeasurementNon-Contact Laser Encoder
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
Non-Contact Laser MeasurementNon-Contact Laser Encoder
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]