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Copyright 2008 IPLAS
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Cycle Time
Optimization Values
by Douglas M. Bryce
The following chart
gives representative financial improvements (savings in dollars)
annually based on specific cycle time
improvements and selective machine rates.
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Cycle Time
Improvement |
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|
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10% |
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15% |
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20% |
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25% |
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30% |
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35% |
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Machine Hourly Rate |
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$30 |
$40 |
$50 |
$100 |
|
$18,720 |
$24,960 |
$31,200 |
$62,400 |
|
$28,080 |
$37,440 |
$46,800 |
$93,600 |
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$37,440 |
$49,920 |
$62,400 |
$124,800 |
|
$46,800 |
$62,400 |
$78,000 |
$156,000 |
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$56,160 |
$74,880 |
$93,600 |
$187,200 |
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$65,520 |
$87,360 |
109,200 |
$218,400 |
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Based
on a machine running 24 hours a day, 5 days a week, 52 weeks a year,
not including scrap and downtime. That results in a total of 6,240
hours available annually, per machine. (Portions
of chart data compliments of Bob Hatch, Prime Alliance)
Based
on the chart data above, a machine has 6,240 hours available to it
annually. If the hourly rate for that machine is $30, the machine
produces $187,200 revenue each year. (This is for the machine only
and does not include plastic material or profit bumps). If you can
reduce cycle times on this machine by 10% you can realize a savings
(profit) of $18,720 annually (10% of $187,200). That can jump to
$56,160 annually by improving cycle times by 30%, and so forth
END
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