PT ZONE: Feeding Economics
The Total Cost of Ownership Approach4.10.1.2 – PhotoFaced with several alternatives, making any rational purchase decision simply means making the best possible selection at the time it has to be made.Often what makes capital equipment purchase decisions so challenging is not just the complexity of the particular issues involved or the underlying mechanics of decisionmaking, but all the residual uncertainties of fact and assumption that linger even after months of careful investigation, evaluation and consideration.“Did we include all the factors that should go into this decision?”… “Did we account for them fairly?”… “Did we accurately estimate projected costs and savings?”… “Should we do more before we decide?”… these and other questions reflect the nagging doubts that confront any equipment buyer.While uncertainties will always exist, working within a logical and comprehensive decision framework will help assure the firmest possible footing in navigating the purchase process. More (+)
Identifying Costs & Benefits4.10.1.2 – Photo 4.10.1.3 – Quality & Efficiency ContributorsBecause of the uncertainties and practical difficulties involved in performing a rigorous pre-purchase estimates of Total Cost of Ownership (TCO), a less formal yet more practical approach may still provide the guidance needed to fairly support the purchase decision. More (+)
MOST RECENT CONTENT: Feeding Economics
Quality Contributors
6/15/2011Plastics Technology
4.10.3.2 – Photo 4.10.3.3 – Quality ContributorsFactors contributing to the cost/benefit stream in direct proportion to process throughput include formulation accuracy and end product uniformity.
Efficiency Contributors6/15/2011Plastics Technology
4.10.4.2 – Photo 4.10.4.3 – Efficiency ContributorsWhile the impact of quality-related cost factors are proportional to process throughput, efficiency contributors impose their costs or deliver their benefits over time by influencing process efficiency in various ways.
Shortcuts to Practical Decisionmaking6/15/2011Plastics Technology
4.10.5.2 – PhotoTo the prospective feeding system buyer the purpose of Total Cost of Ownership analysis should be to direct and support decisionmaking.
Minimizing Recipe Cost6/15/2011Plastics Technology
4.10.7.2 – Photo 4.10.7.3 – Tolerance vs Target Art 4.10.7.4 – Tolerance Art 4.10.7.5 – ExampleTraditional recipes, compounds or formulations are based on the notion of an ideal, targeted proportion for each component.
Available Free Software6/15/2011Plastics Technology
4.10.8.2 – FSD Promo Piece ArtProcessors wishing to automate the optimization of their recipes can download K-Tron’s free FeedSmart at www.ktron.com/cutcosts.
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OVERVIEW:
Feeding Economics
The real costs and savings of any capital expenditure can take many forms and are often difficult to discern at the outset. This section helps you identify the true costs and realistic savings opportunities you can expect from your investment so you can make a fair and rational purchase decision.
As with any essential system or piece of equipment involved in plastics processing, a feeding system directly and continually contributes to the economic value added in processing. Along with whatever primary equipment used to form or shape the end product, whether pellet, part or profile, a feed system is involved to proportion recipe components and/or supply the formulation to the further processing equipment.
Just as when purchasing an extruder or any other major system or piece of equipment, making the feeding system purchase decision requires committing to a cost/benefit stream that begins with initial purchase but continues throughout the system’s service life.
Feeding system purchase, installation and start-up costs can be estimated and compared amongst candidate suppliers. However, future cost/benefit streams are always difficult to anticipate, quantify and compare. Because of this difficulty, lifecycle costs and benefits are frequently given only casual consideration or are discounted and ignored altogether. For many processors this uncertainty frustrates attempts at even the most basic ‘total cost of ownership’ analysis. And too often the unfortunate result is a decision made on the ‘thin ice of price’ without due account of its uncertain economic implications.
Here are some typical factors associated with feeding system performance that contribute to its ongoing cost/benefit stream:
- The compliance of formulations to their specified recipe proportions
- The short- and long-term uniformity of the end product
- The flexibility to accommodate the full range of materials intended to be handled
- The speed and efficiency with which material changeovers can be executed
- The simplicity or complexity of the operator interface
- The ease or difficulty of cleaning, maintenance and troubleshooting operations
- The degree of system reliability
- The quality of supplier and service support
