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December 1999

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Subject:
From:
"Tempea, Ioan" <[log in to unmask]>
Reply To:
TechNet E-Mail Forum.
Date:
Wed, 15 Dec 1999 12:56:04 -0500
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Bob,

if I'm not missing anything you are already cutting the cost by $10, without
the new machine. In this case, the economy you will make, when having the
machine, is $2 only. The ratio you shown changes to 50000 / 2 = 25000
boards.

And the economics is not that simple. You must take into account the
interest the $50000 would pay if you keep it in the bank, instead of
spending it. Check with the accountant, he'll be able to show you the right
way of doing the calculation.

Ioan

> -----Original Message-----
> From: Bob Sechriest [SMTP:[log in to unmask]]
> Sent: Wednesday, December 15, 1999 11:37 AM
> To:   [log in to unmask]
> Subject:      [TN] econ 101 for engineers
>
> Need some very basic advise on cost calculations for equipment purchace
>
> Trying to justify the purchace of a conformal coating machine for several
> of our PCB assemblies. We have been performing the operation manually at a
> cost of  $10 per board less than that quoted by our board builder. My
> estimate is that by automating we can reduce the price per board another
> $2 below the quote. So for a $50000 machine, we can recover our investment
> by producing (50000/12) = 4167 boards. This gives a payback in <18months.
> Sounds great! also sounds too easy. Am I missing something?
>
> Thanks in advance!!!!!!!!!
> Bob
>
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