Jiangce Technology | Technology Sharing

#Calculate the cost: How long can the factory recoup its investment by installing a probe system? **

**Abstract: This article calculates the investment return cycle of the probe system in detail through 5 real cases. Help the boss calculate this account clearly from three dimensions: labor cost, scrap rate, and efficiency improvement.

#Introduction**

Is it cost-effective to spend 50000 yuan on a set of probes

This is a question that every factory owner will ask before purchasing a probe system. We have seen too many bosses miss out on opportunities for improvement because they cannot settle their accounts, and we have also seen too many factories achieve qualitative leaps because they have calculated their accounts correctly.

**This article doesn’t make a big deal out of it, it’s just a true account. **

We will calculate the investment return cycle of the probe system from three dimensions: * * labor cost * *, * * scrap rate * *, and * * efficiency improvement * * through 5 real cases.

#What money can the * * * * probe system help factories save? **

##1.1 Labor cost savings

**Traditional processing flow (without measuring head):**

Loading → rough machining → unloading → inspection in the quality control room → return to the machine tool → precision machining → re inspection → qualified

·Testing time: 20-30 minutes/piece

·Testing personnel: 1 person

·Handling time: 10 minutes per piece

·Waiting time for quality inspection: 30-60 minutes per piece

###After installing the probe:

Loading → rough machining → online inspection → automatic compensation → precision machining → online inspection → qualified

·Testing time: 3-5 minutes/piece

·Testing labor: 0 people (operator concurrently)

·Handling time: 0 minutes

·Waiting time: 0 minutes

**Cost saving calculation:**

-Save time on a single item: 40-80 minutes

-Labor cost savings: 300-500 yuan/day (calculated based on 2 shifts)

-Annual labor savings: * * 100000 to 150000 yuan * * (based on 300 working days)

##1.2 Reduction in scrap rate

**When there is no probe:**

-First article inspection failure rate: 15-20%

-Batch processing deviation rate: 3-5%

-Rework rate: 8-10%

-Annual waste loss: 200000 to 500000 yuan (calculated based on an annual output value of 10 million yuan)

**After installing the probe:**

-First article inspection failure rate: 2-5%

-Batch processing deviation rate: 0.5-1%

-Rework rate: 1-2%

-Annual waste loss: 30000 to 80000 yuan

**Cost saving calculation:**

-Reduction in scrap rate: 70-80%

-Annual savings on waste costs: 150000 to 400000 yuan**

##1.3 Efficiency improvement

**When there is no probe:**

-Single piece processing cycle: 60-90 minutes (including testing)

-Equipment utilization rate: 60-70%

-Annual production capacity: 10000-12000 pieces

**After installing the probe:**

-Single piece processing cycle: 40-55 minutes (including testing)

-Equipment utilization rate: 80-90%

-Annual production capacity: 15000-18000 pieces

**Profit calculation:**

-Efficiency improvement: 40-50%

-Annual new production increase value: * * 500000 to 1 million yuan * * (calculated based on a single piece profit of 50 yuan)

#* * 2. * * * Real case calculation**

Case 1: A certain automobile parts factory (with an annual output value of 30 million)

**Background:**

-Equipment: 30 four axis machining centers

-Product: Engine cylinder block, gearbox housing

-Accuracy requirement: 0.01-0.02mm

-Pain points: high scrap rate (5%), long waiting time for testing

**Investment:**

-30 Marposs VOP40 probes: ¥ 24000

-Including installation, debugging, and training

-* * Total investment: ¥ * * * * 720000**

**Profit calculation:**

|* * Project * * | * * Before renovation * * | * * After renovation * * | * * Annual savings/benefits**
|Scrap rate | 5% | 1.2% | ¥ 380000
|Testing manual | 2 people | 0.5 people | ¥ 180000
|Equipment utilization rate | 65% | 85% | ¥ 420000
|Rework rate | 10% | 2% | ¥ 120000
|* * Annual Total Revenue * * | – | – | * * ¥ 1100000**

**Return cycle:**

Return cycle=Total investment ÷ Annual return
= 720,000 ÷ 1,100,000
=0.6 years * * (approximately 7 months)**

**Boss’s original words: “At first, I thought 720000 was not a small amount, but I didn’t expect to recoup my investment in 7 months. Now every machine tool is making money, and I regret not installing it early

Case 2: A certain aerospace parts factory (with an annual output value of 80 million)

**Background:**

-Equipment: 5 five axis linkage machining centers

-Product: Aircraft engine blades, structural components

-Accuracy requirement: 5 μ m-8 μ m

-Pain points: unstable accuracy, frequent customer complaints

**Investment:**

-Renishaw OMP600 probes x 5 units: ¥ 250000

-NC4+fully automatic calibration x 2 sets: ¥ 80000

-Ball and cue testing service: ¥ 50000

-Total investment: ¥ * * 38 * * * 0000**

**Profit calculation:**

|* * Project * * | * * Before renovation * * | * * After renovation * * | * * Annual savings/benefits**
|Scrap rate | 8% | 1.5% | ¥ 520000
|Customer complaints | 12 times/year | 2 times/year | ¥ 200000 (reduced compensation)
|Rework rate | 15% | 3% | ¥ 360000
|Equipment utilization rate | 60% | 82% | ¥ 650000
|* * Annual Total Revenue * * | – | – | * * ¥ 1730000**

**Return cycle:**

Return period=380000 ÷ 1730000=0.21 years (approximately ******* months * *)

**The boss’s original words: “Precision is life for aerospace parts. Installing probes not only brings quick returns, but also increases customer satisfaction. This investment is worth it

Case 3: A certain 3C electronic parts factory (annual output value of 15 million)

**Background:**

-Equipment: 12 small machining centers

-Product: Phone case, connector

-Accuracy requirement: 15 μ m-25 μ m

-Pain points: large batch size, frequent changeover, high testing pressure

**Investment:**

Marposs VOP40P probe x 12 units: ¥ 420000

Three sets of automatic calibration devices: ¥ 60000

Total investment: ¥ 480000

**Profit calculation:**

|* * Project * * | * * Before renovation * * | * * After renovation * * | * * Annual savings/benefits**
|Testing manual | 4 people | 1 person | ¥ 240000
|Change time | 45 minutes | 15 minutes | ¥ 180000 (efficiency improvement)
|Scrap rate | 4% | 1.5% | ¥ 90000
|Equipment utilization rate | 70% | 88% | ¥ 320000
|* * Annual Total Revenue * * | – | – | * * ¥ 830000**

**Return cycle:**

Return cycle=480000 ÷ 830000=0.58 years (* * approximately 7 months * *)

**The boss’s original words: “For small batches and multiple batches like ours, the changeover time is the most critical. With the installation of probes, the changeover time has been reduced from 45 minutes to 15 minutes. This efficiency improvement is too obvious

Case 4: A certain mold factory (annual output value of 50 million)

**Background:**

-Equipment: 6 large machining centers+2 medium and small machining centers

-Product: Injection mold, die-casting mold – Accuracy requirement: 0.008-0.012mm

-Pain points: Difficulty in cavity detection and frequent mold repairs

**Investment:**

-Renishaw OMP60 probes x 6 units: ¥ 216000

-Renishaw OMP400 probes x 2 units: ¥ 80000

-Calibration device x 2 sets: ¥ 60000

-Total investment: ¥ * * 284 * * *, 000**

**Profit calculation:**

**Return cycle:**

Return period=284000 ÷ 1030000=0.28 years (approximately ******* months * *)

**The boss’s original words: “Mold repair is the most headache, sometimes 3-4 repairs are not enough. With the installation of measuring heads, the mold cavity can be processed in one go, and the number of mold repairs has decreased from 3.5 to 1.2. Customer satisfaction has skyrocketed

Case 5: A medical device factory with an annual output value of 20 million yuan

**Background:**

-Equipment: 4 Swiss turning and milling composite machines+2 machining centers

-Products: Orthopedic implants, surgical instruments

-Accuracy requirement: 3 μ m-5 μ m

-Pain points: High precision requirements, strict certification

**Investment:**

-4 units of Bolong TC50 probes (milling and turning composite): ¥ 200000

-Renishaw OMP600 probes x 2 (machining center): ¥ 120000

-Z-Pico fully automatic calibration x 1 set: ¥ 50000

-Total investment: ¥ * * 37 * * * 0000**

**Profit calculation:**

|* * Project * * | * * Before renovation * * | * * After renovation * * | * * Annual savings/benefits**
|Scrap rate | 10% | 2% | ¥ 160000
|Certification pass rate | 85% | 98% | ¥ 200000 (reducing retesting)
|Testing manual | 3 people | 1 person | ¥ 180000
|Equipment utilization rate | 58% | 80% | ¥ 350000
|* * Annual Total Revenue * * | – | – | * * ¥ 890000**

**Return cycle:**

Return cycle=370000 ÷ 890000=0.41 years (approximately ******* * months * *)

**The boss’s original words: “Medical devices have extremely high precision requirements. The scrap rate used to be 10%, which is really heartbreaking! Installing probes has reduced it to 2%, saving 160000 yuan in just one year of scrap and recouping costs in five months

#III. Summary and Comparison of 5 Cases**

**Average payback period: ****** * months**

#4. Key factors affecting the payback period**

##4.1 Positive factors (accelerating cost recovery)

##4.2 Negative factors (delaying cost recovery)

#5. “Three Accounts” for Investment Probes**

##5.1 First Account: Direct Economic Account

**Calculation formula:**

Annual revenue=Labor savings+Waste reduction+Efficiency improvement+Rework reduction
Return cycle=Total investment ÷ Annual return

**Typical values:**

-Labor savings: 100000 to 200000 yuan per year

-Waste reduction: 150000-40000 yuan/year

-Efficiency improvement: 200000 to 500000 yuan per year

-Rework reduction: 50000 to 150000 yuan/year

-Annual total revenue: 500000 to 1.25 million yuan

-Return period: 4-10 months

##5.2 Second Account: Implicit Income Account

##5.3 Third Account: Opportunity Cost Account

**Losses from not investing in probes:**

-Loss of high precision (mainstream brand probes typically have one-way repeatability accuracy in the range of 0.25~1.0 µ m 2 σ in machine measurement) Order: 1-5 million yuan/year

-Customer churn: 2-10 million yuan/year

-Being surpassed by competitors: difficult to quantify

**Boss, have you calculated this account? **

#VI. Frequently Asked Questions and Answers**

**Q1: “Our factory is small and only has 3 machine tools. Is it worth installing? ”**

**Answer: It’s worth it! Case 3 (3C Electronics Factory): 12 machine tools will recoup costs in 7 months, while your 3 machines will recoup costs in approximately 10-12 months. Moreover, small factories should enhance their competitiveness through automation.

**Q2: “What if the operator is too old to learn? ”**

**Answer: * * We offer 3 days of free training, including both teaching and training sessions. 90% of operators can use it independently within 3 days. And the probe operation is very simple, just like using a mobile phone.

**Q3: “The device has been in use for 10 years and its accuracy is not good. Is installing a probe useful? ”**

**Answer: * * Useful! The measuring head can compensate for machine tool errors. But it is recommended to perform a machine tool accuracy test first. If the geometric accuracy exceeds 0.05mm, it is recommended to repair the machine tool first and then install the measuring head.

**Q4: “How many years can the probe be used? ”**

**Answer: * * Normal use for 5-8 years. The measuring needle is a consumable item that needs to be replaced 1-2 times a year, with a cost of approximately 5000-8000 yuan.

**Q5: “If the payback period exceeds one year, is it still worth investing in? ”**

**Answer: It’s worth it! Measuring heads are not only an economic investment, but also a competitive investment. Even if the capital is recovered within one year, the remaining 4-7 years will be pure income. Moreover, implicit benefits (customer satisfaction, corporate image) cannot be measured in monetary terms.

#* * Conclusion**

**After calculating this account, you should have a clear understanding of:**

-The average payback period of the probe system is ****** * months**

-Annual total revenue: 3-6 million yuan (calculated based on an investment of 600000 yuan)**

-Investment return rate: 500-1000%**

This is not consumption, it is investment; It’s not about spending money, it’s about making money.

Many bosses think 80000 yuan is expensive, but if you calculate: a 1% reduction in scrap rate, a 0.5 person labor saving, and the originally 1-hour tool alignment shortened to 5 minutes, this system will start to net profits for you in the 6th month.

**Consulting now, there is a chance to obtain a machine tool accuracy testing service worth ¥ 5000! **

*All cases in this article are real customers, and the data has been desensitized. The specific benefits vary depending on the actual situation of the factory*

###

FAQ Selected Q&A

**Q: Our factory only has 3 machining centers, is it cost-effective to install a probe system? **
**Answer: * * For small-scale workshops (with less than 5 devices), the input-output ratio needs to be calculated. If each device saves 30 minutes of manual testing and debugging time per day for a set of in machine probe systems costing about 20000 to 50000 yuan, hundreds of hours of labor value can be recovered in a year. Combined with the material savings brought by reducing waste and lowering rework rates, the investment can usually be recovered within 6-12 months. The prerequisite is that the operator has received sufficient training to use the probe for on machine measurement rather than just edge finding.

**Q: What is the biggest hidden cost of the probe system? **
**Answer: The biggest hidden cost is not the price of the probe itself, but the subsequent maintenance and calibration costs. Measuring needles are consumables, and the cost of replacing them after collision damage ranges from hundreds to thousands of yuan each time; The battery of the wireless probe needs to be replaced regularly; The accuracy degradation after long-term use needs to be recalibrated. In addition, the time cost of personnel training is often underestimated – it usually takes 1-3 months of practical experience for operators to go from knowing how to use edge finders to being able to independently write measurement macro programs.

**Q: Can the probe system help obtain higher precision orders? **
**Answer: * * Sure. In machine measurement capability is an important additional item in system audits such as ISO 9001, AS9100 (aviation), and IATF 16949 (automotive). After equipping the measuring head, you can provide a measurement report that is “mandatory for each item”, meeting the requirements of CPK process capability analysis for automotive parts and 100% inspection for aviation parts. More importantly, the closed-loop processing of the probe (measurement compensation reprocessing) can steadily increase the CPK value from below 1.0 to above 1.33, which is a key threshold for many high-end customers to choose suppliers.