Start from the problem
Factory capacity, automation ROI and plant feasibility: what to check first
Short answer: most industrial investment mistakes happen before the first quotation — buying capacity when a bottleneck was the issue, approving automation on brochure numbers, or choosing a contract model without owning the interfaces. Pick your problem below for the diagnosis steps, the cost drivers to budget for, and the right next tool.
Usually raised by: Plant / operations manager
Our plant cannot meet demand
Before buying a new line, confirm whether one bottleneck limits output. Measure actual throughput per station against rated capacity, then decide between removing the constraint, adding a shift or expanding.
How to diagnose it
- Record real output per hour per station over several representative shifts
- Separate downtime, changeover and quality losses from true capacity limits
- Check whether utilities, floor space or labour are the real constraint
Cost drivers often missed
- Production stoppage during installation
- Utility upgrades (power, air, water, refrigeration)
- Building or layout changes
Illustrative only — actual costs depend on scope, site and supplier.
Usually raised by: Finance / budget approver
We are not sure automation will pay back
Automation ROI depends on your own labour, scrap, uptime and volume data — not on supplier brochures. Model a base case and a pessimistic case; if payback only works in the optimistic case, phase the upgrade instead.
How to diagnose it
- Use your own labour cost, shift pattern and current yield as inputs
- Include integration, training, spares and ramp-up losses in CAPEX and OPEX
- Test sensitivity to volume and price changes
Cost drivers often missed
- Integration with existing machines and software
- Ramp-up period at reduced output
- Maintenance contracts and spare parts
Illustrative only — actual costs depend on scope, site and supplier.
Usually raised by: Procurement signer / project director
Turnkey, EPC or several contracts?
Turnkey or EPC puts design and delivery risk with one contractor, usually at a higher price; multi-contract can cost less but leaves interface risk with you. The right choice depends on your in-house engineering capacity.
How to diagnose it
- List who will own interfaces between equipment, utilities and civil works
- Check whether your team can manage commissioning and acceptance testing
- Define performance guarantees you need before choosing the model
Cost drivers often missed
- Contractor risk premium
- Interface and change-order exposure
- Owner's engineering staff or consultants
Illustrative only — actual costs depend on scope, site and supplier.
Usually raised by: Investor / board / lender-facing team
We need a credible budget before approval
An early budget should be a range built from scope, capacity and site conditions, then narrowed with comparable supplier quotations. Treat any single early figure as a hypothesis, not a commitment.
How to diagnose it
- Fix product mix, target capacity and site before asking for prices
- Separate equipment, installation, utilities, freight and duties
- Compare at least three quotations against the same specification
Cost drivers often missed
- Freight, import duties and local taxes
- Civil works and permits
- Currency movement between quote and order
Illustrative only — actual costs depend on scope, site and supplier.
Usually raised by: Procurement / engineering consultant
Supplier quotes are not comparable
Quotes diverge when the request is vague. A written specification with capacity, product, utilities, acceptance criteria and scope boundaries lets you compare like for like.
How to diagnose it
- Check each quote for excluded items (installation, training, spares)
- Normalise currency, Incoterms and payment terms
- Verify supplier references and financial stability
Cost drivers often missed
- Hidden exclusions
- Warranty and service terms
- Payment schedule and guarantees
Illustrative only — actual costs depend on scope, site and supplier.
Ready to compare suppliers?
For projects from about USD 250,000, our project team turns your requirement into an RFQ, contacts suppliers on your behalf and prepares comparable quotations. Free for buyers; no savings or outcomes are guaranteed.
Start a free RFQAlready have a written RFQ or specification? Upload it for review.
Questions
- Who is this page for?
- Plant managers, finance approvers, procurement signers and consultants who know the problem but not yet the solution or supplier.
- Does Global B2B Group sell equipment?
- No. The team prepares the requirement and contacts suppliers on the buyer's behalf, then structures comparable quotations. The buyer service is free.
- What project size do you work with?
- Commercial industrial projects from about USD 250,000. Smaller purchases are usually better served directly by suppliers.