Pythia Industries

Sample Plant

Calculation

Summary
  • We count 15 minutes off each of 2,200 mold changes per year, which is 550 press hours.
  • A freed press hour is counted at $55 when an order fills it, and 70 percent are counted as filled.
  • That is about $21,200 per year, and about $20,300 after the carts' upkeep.
Press hours per year no longer lost to mold changes15 minutes x 2,200 mold changes / 60 = 550
What those hours are worth once orders fill them550 hours x $55 x 70 percent filled = $21,175
Less the upkeep of the carts6 carts x $150 per year = $900
What fixing it could save per year$21,175 - $900 = $20,275

Not counted

  • No person's time is counted as saved: loading the cart is the same fetching, done before the stop.
  • Shorter changes make shorter runs affordable, which lowers stock, and that is not counted.
  • Late orders and overtime that shorter changes might avoid are not counted.
  • The two later ways on the menu are in neither the figure nor the cost to fix.

Illustrative sample. The plant, the walk and the footage are synthetic.