>Need some very basic advise on cost calculations for equipment purchace
>
>Trying to justify the purchace of a . sounds too easy.


Hi Bob,

I had this same dilemma some years ago, the formula I ended up with was;

(lost opportunity cost of money used to buy machine) + (direct cost of
machine, depreciation, maintenance) + (cost of 'skilled' operator to run
machine)

v/s

(labour cost of doing it manually) - adding the fact that the man was able
to do other things, the machine has never been able to be justified to this
day. This is of course also a gross simplification but sometimes a decision
does not warrant the work of a truly complete analysis.


 >4167 boards. This gives a payback in <18months.

At this level of production, manual sounds like the way to go unless there
are other factors, OSHA, safety, etc., and even then a semi-automatic (or
semi-manual if you prefer) system may eleminate the handling at a mere
fraction of the cost.


In light of trying to give back a little to a list that has helped me a
lot, I truly hope this helps,
Paul
----------------------------------------------------------------------
                 Paul Tomlinson,  Professional Services,
                       Suite 140 - 6001 NW 153 St,
                          Miami, Fl, 33104-2447

          voice (876) 929-7777             fax (876) 929-0807

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