KMS 2005
- 1. Preliminary Evaluation of Chip & Coolant Handling System (These are not represented to be actual, but industry guidelines used Cost Factors used to prepare Estimate to determine initial project viability) Scheduled run hours: M‐Th are two (12) hour shifts, F,S,S are one (12) hour shift. Total of 11 shifts per week. Run weeks per year: 50 Shifts per year 550 Cost of machine downtime (Verify based on LOST SALES, value of production, total labor, price of non $400 ($/hr): conformance??) Hard Labor & Burden ($/hr): $90 Soft Labor & Burden ($/hr): $0 "Hard" "Lost Sales" Resources Used Activity Hours Savings Savings Comment (Current) Potential ($) Potential Planned Downtime 6 hrs per 4 weeks X 6 Sump service 468 $13,572 $187,200 Go to 6 month clean‐out people Unplanned Downtime* Operation 1 7.5 minutes every hour 825 $74,250 $330,000 1 machine at 550 shifts Operation 2 7.5 minutes every 2 hrs 825 $74,250 $330,000 2 machines Operation 3 7.5 minutes every 2 hrs 825 $74,250 $330,000 2 machines Get (4) hoppers of chips per shift, but conveyor doesn't bring 5 minutes X 3 times/12 hr Operation 4 138 $12,375 $55,000 everything out. Have to shift manually remove fines/chips from sump. Labor Savings Hard or soft savings? (Can this Chip hopper leveling 10 minutes/hr X 1 person 1100 $99,000 time be used to make parts?) 1 hour total per 12 hour Hard or soft savings? (Can this Housekeeping 550 $49,500 shift time be used to make parts?) Total Estimated Improvement $248,697 $1,380,700 * Unplanned machine downtime costs may be impacted by which operation causes a bottleneck. If we understand this we can potentially help eliminate.