The Business Case For Implementing Machine Vision

THE BUSINESS CASE FOR
IMPLEMENTING MACHINE
VISION
Vision Systems International
 Established in 1984
 Consultancy concentrating on machine vision
 Services include:
 Training
 Application related:
 Application engineering
 Specification writing
 Vendor identification/evaluation
 Market related
 Market research
 strategic development and planning

 partnering activities
 market analysis/competitive analysis
 due diligence
 Technology transfer
Introduction
 Electronic Imaging
 Where is Machine Vision Used
 Why Machine Vision Now
 Machine Vision Industry/Market
 Compared to Human Vision
 Why Consider Machine Vision
 Applications
 Systematic Deployment
 What is Machine Vision
Electronic Imaging vs.. Machine
Vision
 Computers generating images
 CAD
 Animation
 Scientific Visualization
 GIS
 Computers operating on acquired images - Computer vision
 Security/surveillance
 Security/baggage handling
 Retail security
 Biometric/access control
 ATMs/OCR/security
 ITA/IVHS
 Biomedical/scientific/microscope
 Radiology - CAT/MRI/PET
 Automotive - autonomous vehicles
 Automotive aftermarket
 2D symbology/bar code
 Document/form reading/OCR
 Machine Vision
Where is Machine Vision Being
Used
 Machine Vision is in use in virtually all
manufacturing industries
 In some industries one can no longer
produce without machine vision
CHART 2 NORTH AMERICAN MERCHANT MACHINE VISION MARKET UNITS
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CHART 7 NORTH AMERICAN MACHINE VISION MARKET DISTRIBUTION BY MAJOR END USER INDUSTRIES -
UNITS
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S EMICON ELECTRONIC CONTAINER FOOD WOOD TRANS P ORT FAB METAL P LAS TIC P RINTING P HARM + MED MIS C
DEV
Why Machine Vision Now
Technology Readiness
 Underlying technology for machine vision has evolved
 Components developed with features required to
succeed in machine vision applications
 Lighting - LED - stable, long life
 Cameras - solid state, progressive scan, asynchronous
scan, exposure control, color, high resolution
 Optics - telecentric, computer controlled zoom
 Compute power - PCs, DSPs, etc.
 Software - GUI - Windows - Standard
 PCI Interface, IEEE 1394
Technology Pull
 Quality emphasis (ISO 9000, 6 sigma,
etc.)
 Productivity gains sought/downsizing -
eliminates eyes/requires substitute
sensing
 Government regulations
Machine Vision Industry/Market
 Not homogenous
 Segmented
 supply side
 GPMV/IPBS
 ASMV
 VAR
 demand side
 by industry
 process end
 package end
 applications that cut across industries
 e.g. web scanners

GPMV Application Specific
Modules
 PRINTING: INSPECTION, REGISTRATION CONTROL, COLOR CONTROL
 PHARMACEUTICAL: BLISTER PACK, VIAL/AMPULE, SOLID DOSAGES, OCR/OCV
 WELDING
 WEB PRODUCT
 OFF-LINE GAUGING
 MECH ASSY VERIFY
 CONSUMER PKG INSP FILLED
 CONTAINER: METAL, PLASTIC, GLASS, CLOSURES
 2D LOCATION ANALYSIS
 ELEC. PKG. INSP: INSPECTION, QUALITY OF MARKINGS, CO-PLANARITY, BALL GRID ARRAY,
OCR/OCV
 ELECTRICAL/ELECTRONIC CONN
 OCR/OCV
 1D BAR CODES/2D BAR CODES/SYMBOLOGY
 EMPTY CAVITY INSPECTION
 COMPACT DISC APPLICATIONS
 CRT
 ELECTRONIC DISPLAYS
 DATA STORAGE
Container Market
 Glass
 glassware manufacturer
 filler
 Can
 Plastic
 Closure
 For glass and can in late majority phase; for plastic in
early adopter phase; for closure in early majority phase
Pharmaceutical Market
 Process end
 vials, filled/unfilled
 solid dosages
 Packaging end
 label issues
 In process end in early adopter phase; in
packaging in early/late majority phase
Compared to Human Vision
 Machine vision does not compare well!
 We use 1011 neurons to perform about 1015
operations per second
 2 billion years of evolutionary
programming
So Why Machine Vision?
Humans only 70 -
85% effective!
People
 Attention span/distractions
 Eye response
 Relative gauging
 Availability (breaks, vacations, sick, etc.)
 Consistency
 individual
 between individuals
 from day-to-day
People
 Overload
 Boring
 Detect anomalies
 Adapt/make adjustments
 Interpret true nature of condition
Machine Vision vs. People
 Speed
 Accuracy
 Repeatability
Production Errors
 System
 Random
Machine Vision vs. Human Vision
 Machine vision: best for quantitative

measurement of structured scene
 Human vision: best for qualitative
interpretation of complex unstructured
scene
Why machine vision works
 Because variables can be controlled
 parts can be presented consistently
 scene can be constrained
MACHINE VISION
Technology to
 improve quality
 reduce scrap/rework
 reduce cost
 improve productivity
 improve product reliability
 increase customer satisfaction
 increase market share
Why Consider Machine Vision
Technology to
 lower inventories
 avoid equipment breakdowns
 eliminate adding value to scrap
 avoid inspection bottlenecks
 yield
 consistent and predictable quality
Machine Vision Applications
Throughout a manufacturing facility
 incoming receiving
 forming operations
 assembly operations
 test
 packaging operations
 warehousing
 etc.
Generic Applications
 Inspection
 2D, 3D Metrology
 surface flaw/cosmetic analysis
 mechanical/electronic assembly verification
 location analysis
 visual servoing (2D and 3D)
 robot guidance
 pattern recognition
 character recognition
 part recognition
 2D symbol reading
Systematic Deployment
Success Requires
Senior management must
 foster atmosphere to encourage change
 support change agents
 demonstrate buy-in to change
 encourage plant and line to take

ownership
 establish realistic schedule for changes
Success is more likely
 People assigned are interested in new
techniques and welcome change
 begin with easy, non-critical application
 define the parameters of the project and avoid
creeping expectations
 select applications not critical to labor issues
 be supportive during learning process
 plan for replications
Success is more likely
 Obtain people involvement
 Avoid technology leap that is too far
 Make certain project is part of an overall
plan
Implementation Process
 Assemble task force and study production
process
 task force should develop understanding of what
machine vision is
 define need and evaluate alternatives
 investigate - select specific applications
 assess technical feasibility and cost feasibility
 write comprehensive specification
 Install and run-in.
 Conduct acceptance test
 Provide shop floor support
 Evaluate system’s performance against
goals
 Look for another machine vision
opportunity
 Solicit 4 - 6 vendors with appropriate expertise
 Visit vendors to review proposals, policies,
expertise, QC procedures
 Systematically select vendor
 Purchase
 Acceptance test at vendor
 Train all personnel Involved
What is Machine Vision?
As defined by the AIA:
A system capable of acquiring one or more

images, using an optical non-contact
sensing device, capable of processing,
analyzing and measuring various
characteristics so decisions can be made.
Relevance of Pixels
Pixels
512 X 512 1/4M
1300 X 1200 1.4M
AP Wire Photo 2.5M
35 mm color film 20.0M
Steps to Take When Buying a
Machine Vision System
 Identifying Machine Vision Opportunities
 Assess Application Feasibility
 Understand the Application
 Understand the Vendors
 Responsive Proposals
 Systematic Buy-off Procedure
 Mistakes in Buying Automation
Project Justification
Identifying Machine Vision
Opportunities
 Quality concerns
 Productivity/mechanization
 Process control
 Rework
 Inventory build-up - inspection bottleneck
 Equipment jams
 Warranty issues - field returns
 Employee turnover
Identifying Machine Vision
Opportunities
 Lowest value added
 Expensive fixturing
 Lengthy set up times
 100% inspection required to sort bad parts
 Hazardous environment
 Contaminants
 Capital expansion
 Operator limitations
Profile of Good Machine Vision
Opportunity
 Perceived value
 Cost justifiable
 Recurring concern
 Can do something about it
 Straight forward
 Technically feasible
Profile of Good Machine Vision
Opportunity
 User friendly potential
 Dedicated line
 Long line life
 Operation champion
 Management commitment
Global Competition Requires
 Higher manufacturing productivity
 Increased demand
 Higher product quality
 Better customer service
 Flexible manufacturing
 Greater return on manufacturing assets
 Changing standards of manufacturing
performance
Computer Aided Inspection
 Provides traceability - records
 Statistical data base - isolate production
problems
 Real time machine correction/adaptive
control
 Automatic QC data collection and analysis
 Remove drudgery of humans
Hidden Costs Machine Vision
Can Help
 Lost business because product not
produced on time
 Shipment of wrong products
 Excess inventory
 Idle labor because parts are not available
 Doing a job over
 Loss of valuable information
Machine Vision and Factory
Automation
 Data driven automation
 Machine vision = data !
Statistics
 Measurements
 Parts recognized
 Classification
 Types of defects
 Trend analysis
 Performance assessment
 Record keeping
 Process Control
Successful Application Requires
 Comprehensive understanding of needs
 Proper application process
 Good equipment and performance
specifications
 Comprehensive understanding of machine
vision system capability
Machine Vision
 Machine Vision is in Widespread Use
 Best Justification is Process Control
 Infrastructure
 Resources: AIA and MVA
How To Select Machine Vision
Equipment
 Understand the technology

 Assess application feasibility
 Understand the application
 Understand the vendors
 Responsive proposals
 Systematic buy-off procedure
 Applications in pharmaceuticals
Understand the technology
 Become Informed
 Conferences
 Books
 Bibliography
Assess Application Feasibility
 Assess Feasibility
 Basis rests with size of a pixel/FOV
 MVA slide rule
 Typical system handles 500 pixels

 Function of generic application:
 verification
 gauging
 part location
 flaw detection
 OCR/OCV/pattern recognition
Verification
 Function of contrast - real or artificial

 high contrast - feature should cover
 3 X 3 pixel area
 low contrast - feature should cover more
pixels
Gauging
 500 marks on a ruler = resolution
 subpixel interpolation - factor of 4 to 10
 requirements driven by tolerance
 rules of thumb:
 repeatability: 1/10th of tolerance
 accuracy: 1/10th to 1/20th of tolerance
 sum of accuracy + repeatability = 1/3
tolerance
Gauging
 Discrimination - smallest change in
dimension detectable with measuring
instrument
 Discrimination = sub-pixel resolution
 Repeatability = +/- Discrimination
 Accuracy - determined by measurement of
calibration standard = Discrimination
Gauging - Example
 2” part and 2” FOV
 tolerance: +/- 0.005”, total range 0.010”
 repeatability: 1/10 X 0.010” or 0.001”
 discrimination/accuracy: 1/20 X 0.010” or
0.0005”
 with 500 X 500 pixel camera, resolution = 0.004”
 with sub-pixel resolution 1/10, discrimination =
0.0004” = accuracy, so
 repeatability is = 0.0008”
Part Location
 Analogous to gauging
 Can expect to achieve sub-pixel
resolution: repeatability and accuracy
Flaw Detection
 Contrast! Contrast! Contrast!
 Detection Vs. Classification
 Detection: High Contrast, normalized
background (no pattern), can detect a flaw
that covers 3 X 3 pixels
 Classification: flaw should cover 25 X 25
pixels
OCR/OCV
 Stroke width - 3 pixels wide
 Character should cover 25 X 25 pixels
 Spacing between characters - 2 pixels
 Single font style - bold
 Result - 99.9% read rate effectiveness
Linear Array Image Capture
 2000 - 8000 pixels
 Scanning rates up to 2 - 20 KHz
 Speed should be well regulated
 Resolution in direction of travel function of
speed and sampling rate of camera
Understand the Application
General
 Defect prevention is better than the cure!
 Study application site personally!
 Consider vision to enhance people!
 Expect productivity to decline!
 application issues:
 generic application
 variables: part, presentation, etc.
 material handling
 operator interface
 machine interfaces
 environmental issues
 system reliability/availability
 miscellaneous: documentation, warranty, training,
software, spares, service
 acceptance test/buy off procedure
 responsibilities
Tools
 Job descriptions
 Present specifications
 Part drawings
 Floor space drawings
 Samples
 Photos/videos
 Personnel
 Write functional specification
 Use “Machine Vision Requirements
Checklist” - available from MVA - forces
examination of:
 production process
 justification issues
 application issues
System Spec
 Defines “what” system is and “how”
system will work
 involves examination of implementation
details
 programming standards
 style
 control methods
System Specification
 The spec is not what the customer wants!
 Creeping expectations!
 Variables - Gotchas!
System Specification
 Adhere to factory standards
 Adhere to engineering standards
 Use conventional jargon for part
descriptions and to describe the process
 Use existing frames of reference to
develop acceptance test
Before RFP
 Prepare preliminary conceptual design
 Develop schedule - be realistic
 Assess cost
 Determine technical and cost feasibility
Developing Functional
Requirements
 What does the system do?
 What specific function do you want the MV
value adder to do?
 What goals do you expect to achieve with
MV?
 Will the MV system be for a retrofit or next
generation product?
Requirements
 Defines “what” system is and “how”
system will work
 involves examination of implementation
details
 programming standards
 style
 control methods
Requirements
 Does the application involve:
 One object at a time
 Multiple objects
 How many different objects
 What are the part numbers?
 Is it a batch operation or continuous dedicated
process?
 What are the changeover times and frequency
of changeovers?
Requirements
 What are the skill levels involved in
changeover?
 How is function currently being
performed?
 Can new variations to the part be
expected? What might they be?
 Where do parts come from? What is
material handling surrounding MV?
Requirements
 Can rejected parts be repaired?
 Where do pass and fail objects go?
 When does the project have to be
completed?
 How many shifts is the equipment used?
 If machine vision fails, what is the option?
Requirements
 How many MV systems will be required
annually?
 What are the consequences of a failed MV
sequence?
 What are the consequences of a false
reject?
Requirements
 Describe the application
 Generically, does the application involve
 Gauging
 Assembly verification
 Flaw inspection
 Pattern recognition
Requirements
 If Gauging
 What are the tightest tolerances?
 What is the accuracy design goal?
 What is the repeatability design goal?
 Are there reference features?
 What are calibration requirements?
Requirements
 If assembly verification
 Dimensions of assembly
 Is it presence/absence
 Orientation verification
 What is the smallest piece to be verified and
dimensions of that piece?
 Is part correctness also required?
Requirements
 If flaw inspection
 Describe flaw types
 What is the smallest size flaw?
 Does the flaw affect surface geometry?
 Does the flaw affect surface reflectance?
 Is it more of a stain?
 Is classification of flaws required?
Requirements
 If location analysis
 What is the design goal for accuracy?
 For repeatability?
 What is the area over which the “find” is
required?
 Will angular as well as translation correction
be required?
 Will scale change?
 Describe calibration requirements
Requirements
 If pattern recognition
 What is the size of the pattern?
 Describe difference between patterns?
 Is there a background pattern?
 Does pattern involve color? Geometry?
 Number of different patterns?
 Is objective to identify? To sort?
Requirements
 If specifically OCR/OCV
 Fixed font? Variable font? What is font?
 What is the height of the characters?
 What is the stroke width?
 What is spacing between and around characters?
 How many characters in string? How many lines?
Color of print?
 Describe background – color, “busyness”
Requirements
 Object dealing with
 What is material?
 What is finish (texture) like? Dull, glossy,
specular?
 Is surface finish the same on all surfaces?
 For all part numbers? Production runs?
 Any platings, coatings, films, paints?
 Markings?
Requirements
 Object dealing with –
 Shapes – flat, curved, gently curved, other?
Irregular, grooved, sharp radii, mixed
geometric properties?
 Part orientation variation?
 Part sizes?
 Part colors? (hue, saturation, brightness)
 Part temperature?
Requirements
 Object dealing with –
 Possibility of warping, shrinking, bending,
etc?
 Any change in appearance over time?
 Any markings?
 General appearance variables?
 Sensitivity to light?
Requirements
 Material handling
 Present handling or being considered?
 Production rates? Currently? Future?
 Parts static? Moving continuously? Speed?
 If indexed
 How long stationary?
 Total in-dwell-out time?
 Settling time?
 Acceleration?
Requirements
 Maximum positional variations – translation,
rotation?
 More than one stable state?
 Volume envelope for MV?
 Any restrictions or obstructions?
 What triggers action?
 What is result of MV?
Requirements
 Operator interface
 Operators themselves (education, familiarity
with machinery, electronics, computers, etc.)
 Operator interface requirements?
 Personnel access requirements?
 Enclosure requirements?
 Object display requirements?
 Image condition storage requirements?
Requirements
 Operator interface
 Fail-safe operation?
 Program storage requirements?
 Data storage requirements?
 Power failure requirements?
 Reporting requirements?
 False reject and escape rates?
Requirements
 Machine interfaces
 Alarms desired?
 Other machine integration?
 What event triggers MV action? How
detected? How communicated to MV?
 Machine interfaces: part in position, sensor
type, PLC, Ethernet, etc.
 Hierarchical interfaces anticipated?
Requirements
 Environmental issues
 Factory – clean room?
 Air quality? Corrosive?
 Ambient lighting?
 Part conditions?
 Wash-down?
 Temperature? Humidity? Radiation? Shock &
Vibration?
 Utilities available: power, air, water, vacuum?
Requirements
 System availability/reliability
 Number of hours per week? Hours available
for maintenance?
 Calibration procedures?
 Challenge procedures?
 MTBF? MTTR?
Requirements
 Other issues
 Special paint?
 Installation?
 Warranty?
 Spare parts?
 Documentation?
 Training?
 Software ownership?
Questions?
Good RFP
 Describes project in detail
 Describes operation’s business
 Reviews why the project is being solicited
 Reviews schedule
RFP Should Request
 Schedule
 Training
 Service
 Warranty
 Software ownership
 Documentation
 Installation support
 Identifying Vendors
 AIA - Directory
 MVA - Directory
 Opto*Sense database
 Vendor type:
 image processing board
 general purpose machine vision system
 application specific machine vision system
 system integrator
Understand the Vendors
Machine Vision Industry
 Image Processing Board Suppliers
 General Purpose Machine Vision suppliers
 Machine Vision Software Suppliers
 Smart Cameras Suppliers
 Application Specific Machine Vision Suppliers
 System Integrators
 OEM
System Integrator
 Look for
 application competency
 industry competency
 technological competency
 professional competency
 technology independence
 schedule/cost
System Integrator
 Questions to ask:
 Have you done anything like this before?
 What do other clients think of you?
 Do you understand my requirements?
 Are your skills consistent with my
requirements?
Need a Consultant?
 Time an issue and corporate resources
are lean
 Consultant can:
 write specifications
 write bid package
 identify vendors
 evaluate proposals
 prepare acceptance test plans
Need a Consultant?
 Consultants
 conserve resources
 bring technology knowledge
 bring vendor knowledge
 bring objective counsel
 bring negotiating prowess
 Evaluate vendors systematically
 Use Decision Matrix technique to assess proposals
 Visit the 2 - 3 “best” vendors to assess:

 application engineering skills
 quality control procedures
 software practices
 training materials
 documentation
 policies
 references
Responsive Proposals
Proposals Should Include
 Review of implications of variables:
 staging
 image processing
 image analysis
 Implication of organization/lack of
organization of parts
 Time budget to demonstrate confidence
throughput can be met
 Position/temperature error budgets
 Interfacing issues:
 people
 machine/line
 Miscellaneous issues:
 enclosures start up/changeover
 battery back up maintenance
 diagnostics calibration
 reports
 Exceptions to the spec
 Responsibilities:
 installation
 specifically what is required for system to be
successful
 Acceptance testing
 validation procedure
 challenge set
 Policy review
 training
 installation
 warranty
 field service
 spares
 software upgrades
 documentation
 Schedule
 Cost
Proposals Should Reflect
 Familiarity with processes
 Grasp of problem
 Completeness and thoroughness
 Responsiveness
 Evidence of good organization and
management practices
 Qualifications of personnel
Proposals Should Reflect
 Experience in similar or related field or
application
 Record of past performance
 Project planning
 Technical data and documentation
 Geographic location
Proposer Evaluations
 Assess staying power
 Technical resources
 Design philosophy
 Capital/human resources
 Physical facilities
 Documentation
 Policies
Proposer Evaluations
 Schedules
 References
 Quality control practices
 Vendor skills:
 optics
 TV
 Mechanical engineering
 Quality engineering
Sizing up Vendors -
Differentiators
 How long before a service call is made or
phone support is obtained
 Are software upgrades included in the
price? Is upgrade notification automatic?
 What is the company’s annual sales
revenue in the specific product/application
Finalize Evaluations
 Make sure vendor understands
 Visit most responsive vendors
 Visit up and running installations
Vendor Decision
 Previous work
 Quality of work
 Reputation
 Ability to meet schedule
 Understanding of your business and
application
Reference Checks
 Quality of work
 Ability to meet schedule
 Policies
 Support
 Would they do it over !!!
Systems
 No system should be more complicated
than it need to be!
 Good application engineering is critical!
 Contrast, Contrast, Contrast!
 Staging is important, if not more important
than image processing algorithms!
Customer
 Software and hardware should be transparent!
 Tinkering should be discouraged!
 Should not specify equipment, rather function!
 Samples furnished should be representative of
all variables expected!
 Training is critical!
 A little knowledge is dangerous!
Vision Company
 Room lighting is a No - No!
 Vision company should have all disciplines
required!
 Beware of “Piece of cake!”
 Look for relevant experience!
 Verify quality practices!
 Verify policies: training, documentation,
etc.!
Systematic Buy-off Procedure
Application Engineering
 Must avoid jamming regardless of deformities!
 Murphy’s Law - If it can go wrong, it will!
 Lighting
 Lighting is not a constant!
 Never use software to compensate for poor
lighting!
 Shrouds are cheaper than software fixes!
Application Engineering
 Optics
 There are limits to resolution!
 Nothing exceeds the speed of light!
 Image resolution
 Nyquist’s theorem does apply!
 More resolution means more compute power!
 A pixel is not a fixed size! - Magnification
issues
 Write an acceptance test plan/buy-off
procedure
 Different for:
 attribute inspection system - based on Thorndyke
Chart to arrive at sample size - to test for both
escapes and false rejects
 gauging/location analysis - repeatability/accuracy
performance at upper limit, nominal and lower limit of
tolerance
Acceptance Testing
Includes evaluation of
 operator interface
 basic operation
 calibration
 accuracy & repeatability
 throughput
 sensitivity
 maintainability
 availability
Acceptance Testing
 Test at system level
 Test at other than nominal
 Test failure modes
 Test everything in system spec
 Don’t put anything into spec that can not
be tested!!!
Buy-off at Supplier
 Simulate external equipment
 Generate reports
 Run through all screen functions
 Simulate alarms and failure modes
 Power up/down system and components
 Using the Thorndyke chart
 e.g.. for 0 defects
 95% confidence
 400 PPM (reliability)
 from chart np - 3.0
 n = 3/400 x 10 -6
 n = 7,500
 for every factor: color, finish, size, etc.
 Create a challenge to verify
performance
Working With The System In The
Factory
 Should not deteriorate production speed!
 Ideally, avoid having to re-engineer the
manufacturing process to accommodate
machine vision!
 System should have the capacity to be
reconfigured!
Training
 Basic principles of operation
 Normal operating procedures
 screen functions
 power up/down
 reports
 Alarm conditions and recovery procedures
Training
 Back-up procedures
 Normal and emergency maintenance
 Calibration
Mistakes in Buying
Automation
Mistakes in Buying Automation
1. No equipment specification
2. Requesting quotes before visiting
prospective suppliers
3. Incorrect cost estimate
4. Insufficient in-house machine support
5. No input from production people
Mistakes in Buying Automation
6. Poor communication with vendor
7. Acceptance of inadequate equipment
8. Failure to supply latest drawings and
parts with specifications
9. Failure to design for automation
10. Using the wrong technology
per E. Martin, Lanco/NuTec, Assembly March 96
Reasons Why Automation Fails
Per Automation Research Corp. Study
 Unclear or false expectations regarding
what is to take place and the results that
are to be achieved
 Lack of commitment by user management
 Over dependence on technical solutions

Reasons Why Automation Fails
 Lack of acceptance by the user
organization
 Poor project management
 Not properly taking into account the
human resources issues
SI Difficulties With Users
 Inadequate specifications
 Lack of technical knowledge
 No management commitment
 Internal policies
 Separating needs from wants
 Inability to take over system
 Changes in midstream
SI Difficulties With Users
 No one person in charge
 Tight project constraints
 Lack of communication
 Price constraints
 Inability to take risks
 Manpower shortages
 Rigid specifications
Project Justification
Benefits of Machine Vision
 Scrap reduction
 Scrap disposal costs
 Rework
 Inventory reduction associated with rework
 Avoiding value added
 Improving machine uptime - capital productivity
 Avoiding return and warranty costs
 Improving customer satisfaction
 Tangible benefits:
 increase productivity
 reduce scrap
 reduce rework time/inventory
 avoid adding value to scrap
 avoid product returns - warranty issues
 avoid liability issues
 avoid field service
 avoid freight costs on returns
 avoid equipment breakdowns/improve
machine uptime
 improve product fabrication cycle and impact
on inventory
 save indirect labor cost
 save floor space to store rework inventory
 training/labor/turnover/recruiting costs
 out of cycle costs due to schedule upsets
 waste disposal costs
 costs of overruns to compensate for yield
 personnel/payroll costs per employee:
 average worker’s compensation
 average educational grant per employee
 tooling/fixturing savings
 Intangible benefits
 improve quality - consistency of quality
 predictability of quality
 information automation
 flexibility
 people effectiveness/limitations
 sample inspection only monitors system
errors, not random errors
 Intangible benefits:
 process control
 environment
 consumer/government pressure
 “eyes” for automation
 expansion needs
 seasonality
Because some things appear to be
intangible does not mean they have zero
value !!!
In final analysis, justification of technology is

a management issue - not an accounting
issue !!!!
 Data required:
 How many pieces are produced per month
per line?
 How many production lines make the piece?
 What is the current inspection time per piece?
(minutes/piece)
 What is the inspection labor rate? ($/hr
including benefits)
 Data required:
 How many rejects per month (%)?
 What is the value of a reject - $ -?
 What is the value of the raw material in the
piece - $ -?
 What percent of the rejects are reworked per
month?
 What is the average rework time/piece
(minutes/piece)?
 Data required:
 What is the monthly warranty cost - $? -
includes costs of field service, field returns,
repairs, shipments to and from plant,
paperwork, etc.
 Product liability costs per month - $? -
includes liability claims, lawyer fees,
insurance, paperwork, etc.
 Data required:
 What percent of the rejects are scrapped per
month? - the difference between the number
of rejects per month and the number of
rejects reworked per month and returned to
inventory
 What are the monthly waste disposal costs
due to the scrapped pieces?
 Data required:
 What are the scrap and rework inventory
costs per month? - eg. Calculate based on
average number of units scrapped and in
inventory per month multiplied by the value
(cost) of the piece divided by 10 (factor that
assumes any such unit will only be in
inventory an average of two days)
 How many shifts does the line operate?
 Data required:
 Total hours operating per shift?
 Hours worked per month/shift/person? - paid
hours
 Number of units sold per month? Average
selling price of the piece? - not cost Indirect
(supervisory) labor rate ($/hr with benefits)?
 What is the profit per piece produced? ($)
 Data required:
 Current cost of money? Prime rate + 1%?
 If sample inspection, hours per month for
specific piece?
 Calculated values:
 annual direct cost of inspection per piece =
inspection labor rate X hours worked per
month/shift X number of shifts line operates X
12
 annual indirect cost of inspection per piece =
indirect labor rate X hours worked per
month/shift/person X number of shifts X 12
 cost of rejects scrapped = percent rejects/
month X value of a reject X % pf rejects
scrapped/ month X number of pieces
produced/month X 12
 cost of rework = percent of pieces
reworked/month X number of pieces
produced per month X rework time X rework
labor rate X 12
 warranty costs = monthly warranty costs X 12
 liability costs = monthly product liability costs
X 12
 scrap disposal costs = monthly cost X 12
 scrap and rework inventory costs = monthly X
12
 training costs - based on turnover experience
 Assigning values:
 value of reliable data = sum of annual direct
and indirect labor costs X 0.05
 value of improved customer satisfaction =
average selling price of the piece X number of
units sold per month X 12 X 0.001
 Assigning values:
 percent uptime line improvement anticipated -
an estimated value
 value due to gain in line uptime = cost of
machine vision system X number of systems
required X 0.05
 Costs
 cost of machine vision system (or systems)
 launch costs (training, etc.) - estimate 10% of
machine vision system costs
 annual service contract - estimate 10% of
machine vision system costs
 Costs:
 opportunity cost - function of the cost of
money = cost of the machine vision system X
number of systems + launch costs + annual
service contract X number of systems X
current cost of money
 Costs:
 total equipment costs = cost of machine vision
systems X number of systems + launch costs
+ annual service contracts X number of
systems + opportunity cost
 average annual cost over four years = total
equipment costs/4
 Return on investment = (average annual
savings/total equipment costs) X 100
 Payback (years) = total equipment
costs/(average annual savings + average
annual costs with machine vision)
Average Payback Period by
Company Size
Per Automation Research Corp.
large 2.85
medium 3.06
small 3.27
2.6 2.8 3 3.2 3.4

Years
Average Payback Period in Years by
Industry
Per Automation Research Corp.
3.6 3.7
4
2.8 2.8
3 2.4 2.3
Years
2
1
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The Business Case For Implementing Machine Vision

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The Business Case For Implementing Machine Vision

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THE BUSINESS CASE FOR

 strategic development and planning

 e.g. web scanners

 Machine vision: best for quantitative

 surface flaw/cosmetic analysis

 mechanical/electronic assembly verification

 support change agents

 demonstrate buy-in to change

 encourage plant and line to take

A system capable of acquiring one or more

 Understand the technology

 Typical system handles 500 pixels

 Function of contrast - real or artificial

 Visit the 2 - 3 “best” vendors to assess:

 Over dependence on technical solutions

In final analysis, justification of technology is

2.6 2.8 3 3.2 3.4

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