Calculation
| Operator hours per year at these presses | 3 presses x 2,500 hours = 7,500 |
| Hours freed per year when one person handles two presses | 7,500 hours x 25 percent = 1,900 |
| What those hours cost per year | 1,900 hours x $30 per hour = $56,300 |
| Less the upkeep of the chutes, belts and counters | 3 presses x $300 per year = $900 |
| What fixing it could save per year | $56,300 - $900 = $55,400 |
Assumptions
| Value | ||
|---|---|---|
| Presses on long jobs with one person each | 3 | |
| Hours per year each press runs long jobs | 2,500 hours per year | |
| Share of operator hours freed | 25 percent | |
| Upkeep per press per year | $300 | |
| Chute, belt and counter for one press | $5,000 | |
| Cost of one supervisor hour | $45 per hour | |
| Changing the gate on one mold | $4,000 | |
| Cost of one operator hour | $30 per hour |
Presses on long jobs with one person each
3
Hours per year each press runs long jobs
2,500 hours per year
Share of operator hours freed
25 percent
Upkeep per press per year
$300
Chute, belt and counter for one press
$5,000
Cost of one supervisor hour
$45 per hour
Changing the gate on one mold
$4,000
Cost of one operator hour
$30 per hour