Calculation
| Summary | - Each percent of the resin the plant molds costs about $75,000 per year.
- We count 0.4 percent of the resin as no longer scrapped, about $30,000 of resin.
- With the press time and labor in those parts, that is about $36,000 per year.
- A technician's time to keep the settings costs about $6,200 per year, which leaves about $29,800.
|
| One percent of the resin molded per year | 5,000,000 lb x 1 percent x $1.50 per lb = $75,000 |
| Resin in the scrap we count as removed | $75,000 x 0.4, for 0.4 percent of the resin = $30,000 |
| With the press time and labor in those parts | $30,000 + 20 percent = $36,000 |
| Less a process technician's time to keep the settings | 120 hours per year x $52 per hour = $6,240 |
| What fixing it could save per year | $36,000 - $6,240 = $29,760 |
Not counted
- Plastic scrapped and press hours lost when a mold fails in the press are counted under Unplanned mold stops.
- Scrap that is still made, then ground up and molded again, is counted under Scrap plastic thrown away.
- Scrap on the other three of the six molds is not counted until they are studied.
- Parts returned by customers, and the sorting of parts already packed, are not counted.
Illustrative sample. The plant, the walk and the footage are synthetic.