Manual handling versus automation, by cost
The current cost of manual handling and the gap against the cost of a solution. All rates are yours.
Your numbers
What comes out
- Hours per month
- 1,720
- Manual handling per month
- 26,800
- Difference per month
- 26,300
- Difference per year
- 315,600
- Share of current cost
- 98%
Amounts are in whatever unit you entered them.
How it is calculated
people × shifts × hours × days per week × 4.3 × hourly cost + other costs − cost of the solution
What the calculation excludes
- Weeks per month are taken as 4.3 — the yearly average.
- The hourly cost is the loaded one: salary, taxes and everything you attribute to an hour of work. Entering salary alone overstates the difference.
- The difference is not profit. It becomes profit only when the freed hours are filled with something billable rather than turning into idle time.
- The calculation excludes implementation and support: those are separate figures and belong with the cost of the solution.
- Automation rarely removes manual work entirely. If some operations stay with people, reduce the people-per-shift figure to the actual one.
How the calculation is put together
- People per shift
- Shifts per day
- Hours per shift
- Days per week
- Cost per hour
- Other monthly costs
- Cost of the solution per month
- Hours per month
- Manual handling per month
- Difference per month
- Difference per year
- Share of current cost