JM Equipment - Simple Sheeter ROI

Simple Sheeter ROI

Assumptions:

Labor Savings with dual position roll stand

Production per shift (lineal ft):		166,666
Lineal per roll (72” dia and 21 pt)	/	15,700
Number of roll changes per shift	=	10.6
Time to change rolls (hrs)	X	15/60
Number of shifts per day	X	3
Production days per year	X	246
Total roll change time per year (hrs)	=	1955
Dollar cost to operate Sheeter per hour	X	$45
Labor saving due to quick roll change	=		$88,000
Percent increase in production (1955/5904)	=	%33

Labor savings with continues skid delivery

Production per shift (sheets):		50,000
Sheets per skid (55” ht and 21 pt)	/	2,619
Number of skid changes per shift	=	19
Time to do skid change (hrs)	X	5/60
Number of shifts per day	X	3
Production days per year	X	246
Total roll change time per year (hrs)	=	1168
Dollar cost to operate Sheeter per hour	X	$45
Labor saving due to non stop skid delivery	=		$52,582
Percent increase in production (1168/5904)	=	19%

Savings due to reduction in trip or jams on press with improved decurling

Assumes 3 trips per shift will be eliminated with improve decurling:

Number of trips reduced per shift		3
Time down per trip on press (hrs)	X	15/60
Number of shifts per day	X	3
Production days per year	X	246
Total time down caused by trips	=	553.50
Dollar cost to operate press per hour	X	$120
Savings per year due to reduction in trips on press	=		$66,420
Number of sheets wasted per trip		20
Number of trips reduced per shift	X	3
Number of shifts per day	X	3
Production days per year	X	246
Total sheets wasted per year	=	44,280
Average sheet size (ft²)	X	5.2 (25” x 30”)
Ft² of wasted board per year	=	230,625
Actual cost of board per ft² (70 lbs/1000 ft²)	X	$0.0175
Savings due to waste reduction	=	$4,036
	+	$66,420
Total Savings due to reduction in trips	=	$70,456

Summary of Savings in first year:

1. Roll Stand and Splicer savings	$88,000.00
2. Continues Skid Delivery savings	$52,582.00
3. Total saving due to reduced trips	$70,456.00
Total Savings with Upgrades	$211,083.00