"What should I budget for an Andon system?"
It's one of the most common questions—and one of the hardest to answer without knowing your specific requirements. Andon system costs vary significantly based on facility size, feature requirements, and vendor pricing models.
This article breaks down the cost components, explains different pricing models, and provides a framework for budgeting your implementation.
Cost Components
Andon system costs fall into three main categories: hardware, software, and installation.
Hardware Costs
Hardware typically includes:
Call buttons: The devices operators press to request help. Prices vary by type—simple single-button units cost less than multi-button stations with multiple call types.
Pagers or watches: Responder devices. Watch-style pagers (wrist-worn, waterproof) typically cost more than basic beeper-style pagers.
Transmitter: The central unit that receives button signals and sends to pagers. Transmitter capability (range, capacity) affects price.
Signal repeaters: Required if buttons or pagers are beyond transmitter range. Large facilities may need multiple repeaters.
Chargers: For rechargeable pagers. Multi-unit chargers cost more but are more practical for facilities with many devices.
Displays: Optional TV/monitor displays showing call status. Hardware cost plus any mounting requirements.
Software Costs
Software pricing varies by vendor and capability level:
Base license: Core functionality including call routing and basic reporting.
"With the software, you're going to receive the reporting that's included, you're going to receive the availability to make modifications... reminders and escalations as well. So all that's already included."
Many vendors include significant functionality in the base license. Others charge separately for advanced features.
Advanced features: Some vendors charge additional license fees for capabilities like API access, advanced reporting, or integration features.
Capacity-based licensing: Some systems license by number of buttons or users. Expansion requires license upgrades.
Installation Costs
Installation cost depends on approach:
Pre-configured systems: Vendor programs hardware before shipping. Customer installs (typically straightforward—mount buttons, plug in transmitter).
On-site installation: Vendor sends technicians for setup. Higher cost, but hands-on support.
Network integration: If dashboards require network connectivity, IT involvement adds time and potentially cost.
One-Time Purchase vs. Subscription Models
Andon systems are sold under different pricing models. Understanding the model affects both budgeting and long-term costs.
One-Time Purchase Model
Many Andon systems are sold as one-time purchases:
"For this system, there's no monthly or annual fees. It's just a one-time charge. And we do offer a lifetime of customer and technical support."
In this model:
- You own the hardware outright
- Software license is perpetual
- Support is often included indefinitely
- No recurring costs for core functionality
Subscription/SaaS Models
Some vendors offer subscription-based pricing:
- Monthly or annual fees
- Cloud-hosted software
- Updates and support included
- Lower upfront cost, higher cumulative cost over time
Hybrid Models
Many systems combine one-time purchase with optional subscriptions:
"We do offer a subscription, which is not a requirement. The subscription allows you to send email notifications... $90 a month or $1,080 a year. But if you don't add it, there's no monthly or annual fees to the base system."
In hybrid models, the core system is a one-time purchase, while optional features (like SMS/email notifications) require ongoing subscription.
This provides flexibility: you can start with the base system and add subscriptions only if needed.
Factors That Affect Pricing
Several variables influence what you'll pay:
Facility Size and Layout
Number of stations: More buttons mean higher hardware cost. A 5-station pilot costs far less than a 50-station facility-wide deployment.
Range requirements: Large facilities or those with multiple buildings may need signal repeaters, adding cost.
Number of responders: More responders mean more pagers and potentially larger chargers.
Feature Requirements
Basic alerting: Simple button-to-pager communication with no software.
Full reporting: Software that tracks response times, generates reports, enables escalation.
Advanced features: API integration, PLC connectivity, custom dashboards.
More capability generally means higher cost, though some vendors include advanced features in base pricing.
Integration Needs
Standalone operation: System runs independently. Lower complexity, lower cost.
Network connectivity: Dashboards accessible from any PC. Requires network integration.
External integration: Connecting to MES, ERP, or other systems. May require custom development.
Budget Ranges by Scope
The following ranges are illustrative, not quotes. Actual pricing varies by vendor, configuration, and current market conditions.
| Implementation Scope | Typical Range |
|---|---|
| Small pilot (3-5 stations) | $3,000-$8,000 |
| Medium deployment (10-15 stations) | $12,000-$25,000 |
| Large facility (25+ stations) | $30,000-$75,000+ |
- One-time purchase model
- Standard features (not highly customized)
- Self-installation or minimal vendor support
Always get current quotes. Prices change:
"Since the last time you guys purchased, we did have a price increase. So you will see the new prices on today's quote."
Hidden Costs to Watch For
Budget beyond the obvious line items:
Installation Surprises
Network requirements: If dashboards require network access, IT involvement takes time. Understand requirements upfront.
Electrical work: Display monitors may need electrical outlets in new locations.
Training time: Even simple systems require some training. Factor in labor hours for onboarding.
Expansion Costs
"If you wanted to expand... you just have to upgrade the software license at that time for it to be compatible."
Starting small and expanding later is smart—but understand expansion costs upfront. Ask vendors:
- What does adding 10 more buttons cost?
- Are there license upgrade fees?
- What about additional repeaters for range?
Ongoing Costs
Battery replacement: Call buttons use batteries (typically lasting 1-2 years). Factor in replacement cost.
Optional subscriptions: SMS/email notifications, if desired, have annual fees.
Repairs: While warranty covers defects, physical damage may incur repair or replacement costs.
Total Cost of Ownership (TCO)
Smart budgeting considers total cost over time, not just purchase price.
Year 1 Costs
- Hardware purchase
- Software license
- Installation (if applicable)
- Training time
- Optional subscriptions (prorated)
Ongoing Annual Costs
- Battery replacements
- Optional subscriptions
- Potential repairs or replacements
- Expansion (if planned)
Value Offset
TCO should account for value generated:
"To be quite frank, the most cost-effective is adding on to what you have... doing a full new system is just gonna be a little more on the cost."
But cost-effectiveness isn't just about minimizing spend. Consider:
- Response time improvements → productivity gains
- Reduced walking time → labor savings
- Better data → continuous improvement
Cost vs. Value Framework
When comparing options, consider more than price:
What's Included?
Two quotes at the same price may include very different things:
- Is support included? For how long?
- Are software updates included?
- What features come standard vs. cost extra?
Ask explicitly what's included—not everything appears as a line item.
Support Quality
Low-cost systems with poor support may cost more in frustration and lost time. Consider:
- Response time for support requests
- Availability (hours, channels)
- Quality of documentation
Expansion Path
If you plan to expand, understand the cost trajectory:
- Volume discounts for additional hardware?
- License upgrade costs?
- Compatibility with existing equipment?
ROI Perspective
Frame cost in terms of return. A $20,000 system that saves $5,000/month in productivity has a 4-month payback. The "cost" is actually an investment with measurable returns.
Frequently Asked Questions
What's a typical budget range?
For a mid-size manufacturing implementation (10-15 stations with full software), budget $15,000-$25,000 for one-time purchase models. Smaller pilots can start under $10,000. Large deployments vary widely based on scope.
Are there monthly fees?
Depends on the vendor and model. Many systems have no monthly fees for core functionality. Optional features like SMS/email notifications often require subscription. Always clarify the pricing model.
What's included in the price?
Ask specifically. Common inclusions: hardware, base software license, pre-configuration, remote support. Common exclusions: on-site installation, advanced features, SMS/email subscriptions, custom development.
How do I compare vendor pricing?
Create a requirements document and request quotes from multiple vendors against the same scope. Ensure quotes include the same features and support levels. Ask what's included vs. extra.
Getting Accurate Pricing
General ranges help with budgeting, but accurate pricing requires:
Clear requirements: Number of stations, responders, locations. Range requirements. Feature needs.
Current quotes: Prices change. Published ranges may be outdated. Request current pricing.
Apples-to-apples comparison: When comparing vendors, ensure you're comparing equivalent scope and features.
Ask about everything: What's included? What's extra? What does expansion cost? What are ongoing fees?
Understanding pricing models and cost components helps you budget accurately and compare options effectively.
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