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December 1999

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Subject:
From:
Kenneth Stephens <[log in to unmask]>
Reply To:
Date:
Wed, 15 Dec 1999 10:15:31 -0800
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Really you don't have $12 per board to pay for the machine.  You have only
$2 per board to pay for the machine, $12 minus current rate, $10, equals $2.
Then you need to add the costp of maintenance of that machine.  For grins
let's ignore that.  So $50,000/2 is 25,000 boards.  At the rate stated below
that would be about 90 months payback at best.  Then you must add the
interest on the original $50,000 as stated in another earlier post.  Sounds
might slim to be buying a $50,000 machine to save $2 bucks on that number of
boards.

Ken Stephens, President
CAD 2 CAM, Inc.
http://www.cad2cam.com
503-246-4692

> -----Original Message-----
> From: TechNet [mailto:[log in to unmask]]On Behalf Of Bob Sechriest
> Sent: Wednesday, December 15, 1999 8:37 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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