Tymac Process Automation LLC

Cost Justification Study

  About Us  About Us  Products & Services  Savings & Benefits  What's New?  Articles  Case Histories  Site Map  Contact Us


Die Casting Manufacturing Cost Payback Analysis

These figures are for a smaller-sized die casting machine, using zinc, to make staplers:

Units w/o Controls Results Dec 17 Potential Results
SALES FACTORS
Machine Time $/hour $120 $120 $120
Material Markup % of actual 192.9% 192.9% 192.9%
COST FACTORS
Cycle Rate cycles/hour 280.0 355.0 410.0
Cavities #/die 1 1 1
Production Rate parts/hour 280 355 410
Sched. Run Time % of shift 90% 90% 90%
Die Changes #/week 1 1 1
Average Die Change hours 8 8 8
Average Downtime hours/week 4 4 4
Shifts #/week 10 10 10
Shift Length hours 8 8 8
Avg. Mach. Util. % 75.0 75.0 75.0
Yearly Production weeks 50 50 50
Total Scrap Rate % 46.0% 16.0% 5.5%
Start-up Shots # cycles 20 20 20
Start-ups #/week 20 20 20
Average Die Cost $ $40,000 $40,000 $40,000
Average Die Life # shots 3,000,000 3,450,000 3,540,000
Melting Cost $/pound .12 .11 .11
Metal Cost $/pound .62 .62 .62
Re-Melt Loss % 9.0% 9.0% 9.0%
Metal density #/cubic in. .25 .25 .25
DCM Value $ 100,000 100,000 100,000
DCM Life years 10 10 10
DCM Size tons 125 125 125
Machine hour rate $/hour $50.00 $50.00 $50.00
Labor $/hour $15.75 $15.75 $15.75
Average Shot Wt., spec. pounds 1.45 1.45 1.45
Average Part Wt., spec. pounds/piece 0.74 0.74 0.74
Avg. Total Proj. Area square in. 100 100 100
Part Projected Area,ea. square in. 70 70 70
Avg. Flash inches 0.005 0.000 0.000
Average Part Wt. lbs/piece 0.82 0.74 0.74
Flash Recovery % 10.0 10.0 10.0
Running time hours/year 3000 3000 3000
Cost of machine depr. $/hour $3.33 $3.33 $3.33
Gross production parts/week 16,800 21,300 24,600
Less start-up shots parts/week 16,400 20,900 24,200
Net (less scrap shots) parts/week 8,856 17,556 22,869
Die amortization $/part 0.0253 0.0141 0.0122
Machine & labor cost $/part 0.4752 0.2397 0.1840
Melt cost $/part 0.3301 0.1984 0.1759
Re-melt loss cost $/part 0.0726 0.0173 0.0061
Flash cost $/part 0.0228 0.0000 0.0000
Part material cost $/part 0.5084 0.4588 0.4588
Payback Assuming Die Caster Owns Die
Total Part Cost $/part $1.4343 $0.9283 $0.8370
Savings $/part $0.0000 $0.5061 $0.5973
Sales Price (incl. die) $/part $1.4343 $1.4343 $1.4343
Volume parts/year 442,800 877,800 1,143,450
Gross Profit (less DMC depr.) ($1.00) $444,226 $682,979
Gross Profit, % 0.0% 35.3% 41.6%
Profit Increase (savings) $444,227 $682,980


©2007 Tymac Process Automation LLC
Montague, NJ 07827    (P) 973-552-4080  (F) 973-293-7778
Email: info@tymac.com