The Age-Old Question
Should I buy New or Rebuilt?
- How many times has that old 1979 machine been rebuilt?
- How many times have you wished you had a little more power in the shot end…to reduce the scrap rate from 10%, 8%, or even 6%, all the way down to 2%.
- Image what your operators could accomplish if they had a reliable process monitoring system to indicate when the process changes.
- Are you really satisfied with 60% uptime!
OK, so life is full of compromises……OR IS IT?
Make sure you perform a full financial assessment, considering all of the factors, before making a final purchasing decision!
Investing in the latest NEW equipment can reduce your costs. Here’s a Capital Equipment Evaluation Cost Justification Guide to help you determine how much money a new machine can save. Take a moment to estimate your likely savings.
1. Reduce/Eliminate Overtime ..................................................... $
(hrs/mo. X hourly OT rate; operator & support personnel)
2. Reduce/Eliminate Maintenance parts (Monthly)........................ $
3. Reduce Scrap Rate ................................................................. $
(Scrap reduction X total hrs/mo. X Full Machine Rate)
4. Increase Uptime ..................................................................... $
(Uptime improvement X total hrs/mo. X Full Machine Rate)
5. Opportunity Cost Savings ....................................................... $
(Key personnel available for improving production efficiencies elsewhere in the plant or working closer with customers, % of time freed X Wages & Benefits X 1.3)
6. Metal Savings.......................................................................... $
(Scrap Reduction X Dross (5%) X Shot Weight X Avg. Parts/hr X total hrs/mo)
A. Total Savings (add #1-6 & multiply by 12).......................... $
This exercise is conservative and may or may not capture all of your savings, but it is likely that the above total is a significant figure that you won’t want to leave on the table.
- Rebuilt Machine Cost.............................................................. $
(Either from a rebuilder, or an as-is machine)
- Additional Investment.............................................................. $
(Services and materials purchased to rebuild the machine)
- Labor Cost.............................................................................. $
(In-house labor hours X Hourly rate X 1.25)
B. Total Rebuilt Machine Cost (add #7-9) .................................... $
C. New Machine Investment.......................................................... $
New Machine ROI (A/(C-B)).......................................................... %
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