Custom Automation: POC vs. Full Build for ROI Success

The Custom Automation Conundrum: POC or Plunge? A SEYMOUR Advanced Technologies Perspective

At SEYMOUR Advanced Technologies, we’re passionate about helping businesses unlock their full potential through advanced automation. A question we frequently encounter from our clients is a pivotal one: When embarking on a custom automation project, should we build a Proof of Concept (POC) first, or should we go straight for the full, single machine build?

It’s a fundamental decision that can significantly impact your project's success, budget, and ultimate return on investment (ROI). While the allure of immediately seeing a finished machine is strong, a thoughtful approach, often involving a POC, can be the difference between a triumphant transformation and a costly setback. Let's delve into the nuances of each path, drawing from our comprehensive ROI framework.

Rapid prototyping for quick revisions

The Allure (and Peril) of the Single Machine Build: Just "Go For It!"

The idea of bypassing a preliminary step and diving directly into the construction of a custom automation machine can be incredibly tempting. It seems like the fastest route to seeing your vision come to life.

The Perceived Advantages:

• Apparent Speed to Deployment: On the surface, it looks like a direct build saves time by eliminating a separate design and testing phase. If your project is exceptionally straightforward, with fully defined and unchangeable requirements, this might hold true for the initial deployment.

• Singular Focus: All resources—financial, human, and material—are theoretically channeled towards the final product from day one, potentially streamlining initial project management if there are absolutely no unknowns.

The Significant Downsides (and Why They Lead to "Common Mistakes"):

However, our experience consistently shows that this path is fraught with hidden risks, often turning initial "speed" into significant delays and budget overruns. These pitfalls directly relate to the "Common Mistakes" we've identified in automation projects:

• High-Stakes Gamble – The Ultimate Risk: This is the most critical drawback. Without validating the core concepts, technologies, and integration points, you are making a substantial investment in an unproven solution. This directly leads to "Missing hidden costs" – unexpected expenses that surface only during the full build because they weren't tested. You might also be "Overestimating throughput" or "Forgetting maintenance needs" because the real-world performance hasn't been observed.

• Rigidity and Lack of Agility: Once a complex, custom machine is built, making significant design or functional changes becomes exorbitantly expensive and time-consuming. This severely impacts "Future flexibility" (a key "Hidden Benefit" that becomes a hidden cost). Imagine realizing a critical workflow needs adjustment only after the steel is cut and the components assembled!

• The Inevitability of Rework and Delays: If the machine doesn't integrate seamlessly into your existing operations, fails to meet performance specifications, or has unforeseen operational glitches, you are immediately looking at costly rework. This negates potential "Direct Benefits" like "Lower scrap rates" and "Reduced material waste" by introducing its own form of waste. It also directly inflates "Production downtime during install" (Variable 1: Initial Investment) and can drastically increase "Annual Operating Costs" (Variable 2) due to constant troubleshooting, debugging, and unexpected repairs. You'll likely be "Underestimating validation time" as well, stretching your project timeline indefinitely.

• Difficulty in Quantifying True ROI: Without a smaller-scale test, it’s much harder to accurately predict the intangible but significant "Hidden Benefits" such as "Better process data," "Improved traceability," "Higher customer satisfaction," or the value of a "Retained workforce" due to ergonomic improvements. These are often the elements that truly make an automation project worthwhile over the long term, and they're harder to sell internally without some form of empirical evidence.

  
  

POC for bin picking small parts, repetitively

The Strategic Advantage of a Proof of Concept (POC): "Test Before You Invest"

A Proof of Concept is a focused, small-scale project designed to validate a specific technical approach, an unproven concept, or a critical integration point before committing to the full-scale production system. While it requires an initial investment of time and resources, its strategic value is immense.

The Undeniable Advantages (and How They Drive "Direct" and "Hidden" Benefits):

• Profound Risk Mitigation (The ROI Game-Changer): This is the single most compelling reason for a POC. It allows you to identify and address critical technical hurdles, integration challenges, and unforeseen complexities in a controlled, less expensive environment before the bulk of your investment is made. This directly counters "Missing hidden costs" and ensures you're not "Ignoring facility mods" or "Skipping staff training budget" later on. By validating the core, you drastically de-risk your project's "ROI Period."

• Concrete Validation of Design & Functionality: A POC proves that your chosen approach actually works as intended. This means you can confidently project "Higher production output," anticipate "Lower scrap rates," and expect "Better quality consistency" (Variable 3: Direct Benefits) because you've seen the core mechanics in action. It helps ensure you're not "Overestimating throughput".

• Refined Requirements and Scope Definition: The hands-on experience of a POC often uncovers nuances in your operational requirements that were impossible to foresee on paper. This iterative process leads to a much more accurate and comprehensive final design, preventing costly mid-project pivots and ensuring you "Document current costs fully" and "Build in contingency budget" from a place of greater certainty.

• Early Identification of "Hidden Benefits": Witnessing a POC in action allows stakeholders to visualize and better appreciate the "Hidden Benefits" (Variable 4). You can see how "Lower insurance costs" might be achieved through validated safety features, how "Better process data" can be collected, or how "Improved traceability" might transform your operations. This strengthens the business case and internal buy-in.

• Optimized Resource Allocation for the Full Build: With the unknowns reduced, your full investment in "Engineering and design time," "Installation labor," "Staff training," and facility modifications (Variable 1: Initial Investment) is much more targeted and efficient. You know exactly what resources are needed where.

• More Accurate and Confident ROI Projections: Data gathered from a successful POC (even on a small scale) provides a far more robust basis for your ROI "Sample Calculation." You can project "Annual Net Benefit" with greater confidence, leading to a realistic and achievable "ROI Period." This fulfills the "Keys to Success" of "Get real quotes from vendors" and "Track actual vs projected gains."

• Enhanced Stakeholder Buy-in and Collaboration: A tangible POC provides a powerful visual aid for all stakeholders – engineers, operators, management, and even finance. It fosters clearer communication, encourages constructive feedback, and builds confidence in the project's viability. This aligns with "Include ALL stakeholders early."

The Necessary Considerations:

• Additional Upfront Time and Investment: Yes, a POC adds a phase to your project timeline and requires an initial investment. This is part of your "Initial Investment" (Variable 1). However, this is typically a fraction of the cost and time compared to rectifying issues in a full-scale, operational machine.

• Focused, Not Full-Featured: A POC is designed to validate specific elements, not to be a complete, production-ready system. It won't deliver all the "Direct Benefits" of the final machine immediately, which might be a mental hurdle for some.

  
  

Pick and place POC for microelectrical component assembly.

Our Recommendation at SEYMOUR Advanced Technologies:

For custom automation machines, especially those involving any degree of complexity, integration with existing systems, or novel technologies, SEYMOUR Advanced Technologies strongly champions the strategic use of a Proof of Concept (POC).

While the desire to jump straight into a full build is understandable, the calculated, upfront investment in a POC is almost always outweighed by the significant reduction in risk, the refinement of requirements, the optimization of the final solution, and ultimately, a much more predictable and positive Return on Investment. It’s about building smart, not just building fast.

By embracing a POC, you ensure your custom automation isn't just a machine, but a meticulously validated, high-performing asset that delivers on its promise to revolutionize your operations.

Considering custom automation for your facility? Let SEYMOUR Advanced Technologies guide you through the process, from strategic Proof of Concept development to seamless integration. Contact us today to discuss how we can help you achieve your automation goals with confidence.