Pythia Industries

Sample Plant

Calculation

Summary
  • Avoiding five of the nine stops per week, over 50 working weeks, is 250 stops per year.
  • Each one loses about 1.2 hours of press time and 25 pounds of plastic.
  • A freed press hour is counted at $38.50: $55 when an order fills it, which we assume for 70 percent of them.
  • With plastic at $1.50 per pound, those stops cost about $20,900 per year today.
  • Planned cleaning costs about $7,200 per year of mold shop time, which leaves about $13,700.
Unplanned stops avoided per year5 per week x 50 weeks = 250
Press hours no longer lost250 stops x 1.2 hours = 300
What those press hours are worth300 hours x $55 x 70 percent filled by orders = $11,550
Plastic no longer scrapped at stops250 stops x 25 lb x $1.50 per lb = $9,375
Less planned cleaning in the mold shop3 hours per week x 50 weeks x $48 per hour = $7,200
What fixing it could save per year$11,550 + $9,375 - $7,200 = $13,725

Not counted

  • The time of the people who clear each stop is not counted.
  • It is cash only if overtime falls, and payroll shows about 180 overtime hours per week.
  • Planned cleaning is charged in full, with nothing taken off for the repairs it replaces.
  • Repair parts, rush orders for parts and damage when a press closes on a stuck part are not counted.
  • Orders that ship late because of a stop are not counted.
  • Scrap that comes from press settings is another problem on this page, and is not counted here.

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