Automation FAQs | Answers from Modularex Experts

Most Common

Frequently Asked Questions

How does Modularex's Automation As A Service (A³S) work?

In the current business landscape, companies often face constraints on their capital budgets. When they do allocate funds, they seek opportunities with the highest impact. Modularex offers a solution that funds automation from operating budgets (OpEx) using a subscription. This involves paying a convenient hourly or monthly rate for a defined output—for instance, $15/hr for the automated movement of 10 boxes per minute onto a pallet.

Automation as a service effectively alleviates the financial burden and risk for businesses wanting to invest in automation. In most cases, there’s no upfront cost, only a single, affordable rate. The benefits are immediate, delivering results and cost savings from day one.

Who owns the equipment?

Equipment ownership remains with Modularex, and clients use the equipment, providing a seamless experience. As part of our all-encompassing service, Modularex takes charge of everything – ranging from equipment installation and operator training to predictive and reactive maintenance. All of this is covered under our service umbrella at no extra expense to you, ensuring operational efficiency without the financial burden.

How does A³S differ from an equipment lease?

In an equipment leasing model, the client pays for the equipment while in our A³S service model, the client pays to use the equipment. The A3S model has the advantage of making automation a variable operating cost, similar to labour. Modularex is replacing a high variable operating cost (i.e., labour) with a lower variable operating cost (i.e., automation). Another advantage of the A³S model over leasing is that it covers everything including upfront engineering, maintenance, support and spares. A³S is simple – one monthly fee based on how much you use the equipment.

How does Modularex deliver a cost-effective A³S solution compared to buying or leasing?

Leveraging Technology: At Modularex, technology is integral to the entire process, from scoping and quoting to deployment and maintenance. This tech-driven approach enhances efficiency throughout, and we extend these benefits to our customers.

Operational Scale: Every aspect of our operations, from procurement to maintenance, is conducted at scale. By managing and sustaining systems for a large customer base, we achieve remarkable efficiency. These operational economies of scale translate into cost savings for our valued customers.

What applications can Modularex automate?

Modularex is adept at automating various applications within a variety of industries including consumer goods manufacturing, packaging, and logistics.

What are the responsibilities of machine users?

Our customers are tasked with supplying power, compressed air, and necessary network connections for the robot. Furthermore, we provide training for one or more members of your team as robot operators, and it is expected that your team adheres to the correct operating procedures. You are not required to possess in-house engineering or robotics capabilities, as we strive to create comprehensive “turn-key” systems, handling every aspect of the process.

Is there a minimum commitment period?

Contract durations usually range from 1 to 5 years. Additionally, in certain instances, we may provide a short trial period to allow customers to familiarize themselves with the A³S model and ensure their comfort with the arrangement.

What if the machine encounters an issue?

Our business model centers on a straightforward principle: our success hinges on our customers’ production success. Every system we offer is supported by Modularex’s dedicated Service Level Agreement outlined in each contract, specifying performance benchmarks (e.g., 5 parts per minute with 95% availability). To swiftly address any unplanned issues, we have a network of technicians, field engineers, and partners, with readily available spare parts dispatched as needed. Our systems are equipped with IoT software, allowing us to monitor and resolve issues remotely. In the rare instance where we fall short of our SLA commitment, we provide compensation and credits to ensure your satisfaction. We stand firmly behind our performance, committments and service levels. We have a vested interest in restoring your robots to optimal functionality at no additional cost to you. This means, in the face of any problem, we are on the same side – working towards a seamless resolution.

How much is the hourly rate?

Modularex systems are invoiced on a monthly basis, with the actual charge a function of the agreed upon hourly rate multiplied by actual usage in that month. Cost and complexity of systems vary so widely depending on application, but on average we see hourly costs between $5 per hour and $35 per hour. Generally, longer contract durations, simpler applications, and higher usage contribute to a more favorable hourly rate. More importantly however that the hourly rate, is the hourly savings. Automation systems replace personnel costs. So, for example, a single system with hourly rate of $25 per hour for a system may replace 10 personnel with hourly rates of $17 per hour. This results in an hourly saving of ($17 X 10) – $25 = $145 per hour. This is where the power of the A³S model shines.

How quickly can you implement a system for us?

From scoping to deployment, the process can be completed in as little as 4 weeks. The specific timeframe is contingent upon the nature of your application, the speed at which we can acquire the necessary information, and the lead time required for obtaining all the components essential for the system.

What is the process for incorporating new SKUs and products into our production?

To accommodate changing needs, we generally include one free programming addition per year (and sometimes more), excluding any new hardware requirements. If new hardware is essential, we offer flexibility through one of three options:

1) Extend the contract term to absorb the additional system cost;
2) Adjust the hourly billing rate for the remaining contract duration; or
3) Pass on the additional cost through a single payment.

How should I handle the financial accounting for a Modularex system?

Many of our customers have chosen to categorize our systems according to their own accounting practices. We encourage you to consult with your accounting and tax advisors to determine the best approach for your specific situation.