Insight: Pay-per-hour automation – tackling the hidden costs of inefficiency in manufacturing
Workers lose hours every week on low-value tasks like moving materials instead of focusing on their craft. Paul Rivers shares how Guidance Automation’s innovative ‘Automation by the Hour’ model eliminates the risk, complexity and upfront costs of automation – helping Manufacturers boost efficiencies and their bottom lines.
For too long, manufacturing has accepted inefficiencies that creep into workflows unnoticed. Skilled workers spend precious time on tasks that add no direct value to production – walking to and from stores, manually moving materials or waiting for parts. This isn’t a criticism of the workers but of the systems they operate within. If someone is paid to operate a machine or assemble a product, why are they spending time fetching supplies?
Take the welders in a medical equipment facility. Analysis revealed they were only welding for 10 minutes each hour. The remaining 50 minutes were spent walking to collect parts or deliver finished goods to the paint shop. By introducing a single robot to handle material transport, those same welders now spend 30 minutes per hour welding – a threefold increase in productivity by 5 welders.
Similarly, in a cushion factory with 50 machinists, several minutes of each hour were spent walking to drop off completed batches and retrieve raw materials. While this seems minor, across 50 people, it added up to over 30 hours a day – the equivalent of an extra four worker’s output. Automating these material movements didn’t cost anyone their job, it simply allowed the machinists to focus on sewing, not walking.
These examples, from just the past year, highlight a simple truth: If the UK wants to reclaim its place among the top ten manufacturing nations, then automation must be more widely adopted.
Overcoming the barriers to automation
Despite the proven benefits, the reluctance to automate persists. According to the latest data, the UK ranks last among G7 nations in industrial robotic installations. This trend stems from three key barriers:
1 – The perception of expense
Automation is often seen as a high-capex investment, deterring many manufacturers. But not all automation requires a greenfield site or multi-million-pound outlay. Guidance Automation offers modular, adaptable solutions that integrate seamlessly into existing workflows.
Our Autonomous Mobile Robots (AMRs), for example, can easily be deployed, automating material transport with minimal disruption. Capable of handling a wide range of payloads in production and warehouse facilities, Autonomous vehicles enhance efficiency, reduce handling errors and can be customised with conveyor top modules, robotic arms or bespoke attachments to suit your specific needs.
2 – Limited knowledge of automation
A major hurdle prevalent throughout UK manufacturing is simply not understanding what’s possible with automation. Production managers and engineers know their workflows inside out but often lack exposure to automation’s potential. This knowledge gap leaves them assuming it’s too complex, unsuitable or unaffordable.
Guidance Automation bridges this gap with on-site demonstrations and real-world examples tailored to industry-specific challenges and showing how quick wins can transform productivity.
3 – Knowing who to trust
From fixed arms and AMRs through cobots to AI-driven systems, the array of automation options can feel overwhelming. It’s hard to know where to start or who to trust, with vendors frequently pushing one-size-fits-all solutions, leading to suboptimal investments and underutilised equipment.
Guidance Automation simplifies the decision-making process by focusing on your unique needs and inefficiencies. By recommending only proven, compatible solutions, we minimise the risks of trial and error, ensuring every investment delivers results.
Removing the risk from automation
Automation is often seen as a risky investment, and for good reason. A single AMR can cost upwards of £100,000 when factoring in hardware, software and installation. Even if such a system promises savings, it’s understandable that businesses hesitate to commit to such an investment, especially when ROI feels uncertain.
At Guidance Automation, we’ve eliminated this risk and lowered the entry barrier with our pay-per-hour model, turning automation into an operational expense.
Here’s how it works:
1 – Shared savings for shared success
For every hour the robot works, you pay us half the savings it generates compared to a human worker. If we save you six hours of manual labour, you pay for three. You retain half the savings; we earn the other half – aligning our interests to ensure your success.
2 – Six-month trial with full support
Nothing beats seeing technology in action. That’s why we bring a vehicle to your facility so you can experience the benefits first-hand. We typically start with a six-month integration and optimisation period, during which we work together to fine-tune the solution to your needs. If it’s not the right fit, you can end the trial without further obligation.
3 – Flexible, no-commitment usage
After six months, switch to a rolling monthly usage plan based on your needs. Pay only for the hours the robot works, with no fixed contracts and just 30 days’ notice to cancel.
4 – No capital outlay, zero risk
Our innovative model removes the financial and operational risks typically associated with automation projects. You don’t need to worry about underutilised equipment or uncertain ROI. Instead, you can focus on reaping the benefits while we take care of the rest.
By sharing the savings, we ensure our solutions are cost-effective from day one. And because the robot operates on a pay-per-hour basis, you pay only for what you use – guaranteeing lower costs than manual labour and freeing up skilled workers for higher-value tasks.
Why the right guidance matters
The UK’s productivity problem won’t fix itself. But with the right guidance, overcoming long-standing barriers is possible. Addressing inefficiencies isn’t about replacing people, it’s about empowering them to do more of what they’re skilled at.
At Guidance Automation, we understand the unique challenges faced by small and medium-sized manufacturers. With over 30 years of expertise in developing autonomous and robot technologies, we specialise in helping SMEs unlock their automation potential. Our tailored solutions ensure that every system – from navigation and material handling to custom attachments – is designed to meet your needs.
Our mission is to provide scalable, affordable and flexible automation solutions. Whether you’re looking to reduce inefficiencies, redeploy or upskill workers, or cut costs while staying agile, we’re here to help. Let’s refocus your teams on what they do best – the tasks that truly drive your success.
Book your free on-site feasibility assessment with the Guidance Automation improvement experts, to assess your workflows, spotlight potential productivity gains and provide an automation feasibility score – kickstarting your journey to smarter, more efficient operations.
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