FPB-1800 Justification

A real calculation from a fabricator analyzing his costs, and justifying the purchase of a Peddinghaus FPB-1800

Gussets – A Fabricators’ Cost Analysis

•A Fabricator in North America needed to run a large amount of gussets similar to the drawing to the right.

•They did their own cost analysis in justifying the Peddinghaus FPB‐1800 purchase.p

•They asked several employees to estimate the time it took them to make the part manually and thenmake the part manually, and then calculated time and costs involved.

Employee One - Time EstimateT k Ti t P fTask Time to Perform

Template 1 min

Layout 2 min

Burn 11 min

Drill/clean 4 min

Handling 2 ming

Total 20 Min + indirect time factors (25%) =25 min/plate25 min/plate

TOTAL MAN HOURS = 1,327 for Project

Employee Two - Time EstimateT k Ti t P fTask Time to Perform

Template 1 min

Layout 2 min

Burn 15 min

Drill/clean 4 min

Handling 3 ming

Total 25 Min + indirect time factors (25%) =31 25 min/plate31.25 min/plate

TOTAL MAN HOURS = 1,658 for Project

Employee Three - Time Estimate (Fabtrol Adjusted)

Task Time to Perform

Template 0 min

Layout 5 minLayout 5 min

Burn 12.5 min

Drill/clean 5 min

Handling 3 min

Paint 1 min

Total 26 5 Min + indirectTotal 26.5 Min + indirect time factors (25%) =33.125 min/plate

TOTAL MAN HOURS = 1,758 for Project

Average Hours from 3 Estimates for this Project Done Manually:

1581 HOURS29.8 MIN/PLATE

Peddinghaus Estimate (based on 72×240” Plate)

Task Number of Repetitions Time Performed

Punch 120 holes 6 Minutes

Plasma 30 pierces 3 Minutes

Plasma cut 2554.7 inches 17.62 Minutes

Total Process Times 26.62 min for 30 parts .89 minutes per gusset plate

Total Time After Handling (2 min. per plate from  4.06 min/Gusset + (25% f g ( p p ftruck to machine)

/ (indirect) = 5.08 min/plate

TOTAL TIME WITH PEDDINGHAUS

The Peddinghaus Difference:

Hours to do Manually: 1581TOTAL LABOR SAVINGS FOR PROJECT:

y‐ Hours to do with FPB‐1800: 270SAVED SHOP HOURS 1311SAVED SHOP HOURS: 1311

Material Cost Savings

Material Cost Analysis

Current Materials Rectangular cut plates: 3184 $139,452.83Current Materials Rectangular cut plates: 3184 pieces×71.8 lbs. @$.61 

$139,452.83

Materials with FPB‐1800 72×240 plates30 Gussets per plate =

$119,123.6830 Gussets per plate   106.133 plates @ 122 plf ×20 @ $.46

Material Cost Savings $20,329.15

Total Cost Savings for this Project:

Total Labor Savings for Gusset Plates

Labor @ $30.00 / hr × 1311 $39,330.00 saved

Material $20.329.15 savedMaterial $20.329.15 saved

TOTAL $59,659.00 TOTAL SAVINGS

/ $60,000/129.5 TONS $463.32 SAVED PER TON OF GUSSET PLATES

Approximate Annual Labor and Plate M i l C S i C l l iMaterial Cost Savings Calculation:•Assuming average yearly plate projects = 10%

•Assuming yearly production is on average from 8,000 to 10,000 tons

•Average yearly plate content therefore is 800‐1000 tonsAverage yearly plate content therefore is 800 000 tons

•Average yearly base plate content = 50% of plate content

•Therefore annual gusset plate requirements = 400 to 500 tons•Therefore annual gusset plate requirements = 400 to 500 tons

•Yearly savings with weight at $463.32 = $185,328 to $231,660

•Less estimated consumable costs annually = $10,800…..

Estimated Yearly Savings:

$174 528 t$174,528 to $220,860$220,860

Estimated Payback Period:

2 5 3 22.5 to 3.2 YearsYears