Pythia Industries

Sample Plant

Calculation

Summary
  • A freed large-press hour is worth $55 once an order fills it, and we count 70 percent as filled.
  • At 300 hours per year, that is about $11,600.
  • Those hours use 3,000 kWh less in a smaller press, about $300.
  • The scheduler's weekly check costs about $3,000 per year, which leaves about $8,900.
Large-press hours freed, once orders fill them300 hours x $55 x 70 percent filled = $11,550
Electricity saved per year, in kWh300 hours x 10 kW = 3,000
What that electricity costs3,000 kWh x 10 cents per kWh = $300
Less the scheduler's weekly check1.5 hours per week x 50 weeks x $40 per hour = $3,000
What fixing it could save per year$11,550 + $300 - $3,000 = $8,850

Not counted

  • The freed hours that no order fills are not counted: 30 percent of them.
  • Wear on a small mold from more clamping force than it needs is not counted.
  • Plastic spoiled by waiting hot in a large barrel between small shots is not counted.
  • Orders that ship on time because a large press was there for them are not counted beyond the press hour itself.

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