If one is able to upgrade a process to double throughput, you’re effectively saving your hourly charge - adding this to your bottom line, right?
But by doing so, you’re also effectively increasing your profit / hour by both the savings gained and the efficiency increase of twice the units. Therefore, upgrading double dips and not only saves you money, but gives you much higher earning potential, at least with that job?
Efficiency Gain (EG) = (New Earnings per Hour) - (Original Earnings per Hour) + (Savings in Labor Costs per Hour)
You’re not crazy, but you’re discounting the cost of automation. How long until the cash for the capex is returned? Is there maintenance and repair cost built in? What happens if the equipment goes down for ___ amount of time?