|
CALCULATION OF RETURN ON KELLER PUMP/SKIMMERS
BASES OF CALCULATIONS:
10 machine tools, 80 gallons of coolant mixture total
CASE 1: Without effective cleaning equipment; CASE 2: Keller TKO
Pump/Skimmer on each sump
COOLANT LIFE:
Without Effective Coolant Cleaning Equipment - 3 months (4 changes
per year)
With Keller TKO-10 Pump/Skimmers - 12 months (1 change per year)
| OPERATION |
NO
EFFECTIVE CLEANING EQUIPMENT |
WITH
KELLER PUMP/SKIMMERS |
|
Calulation
of Annual Cost |
Cost
($/year)
|
Calulation
of Annual Cost |
Cost
($/year)
|
| COOLANT
RELATED COSTS: |
| Coolant
Makeup @ $14 per |
800 gal.
x 5%=40 gal/change
4 changes/year=160 gal x $14 |
$2,240
|
800 gal.
x 5%=40 gal/change
1 change/year=40 gal x $14 |
$560
|
| Spent
Coolant Disposal Cost @ $2 per gallon |
800 gal.
x 4 x $2 |
$6,400
|
800 gal.
x 1 x $2 |
$1,600
|
Labor
to Change Coolant
@$20/man-hr variable costs |
4 man-hrs/sump
x 10 sumps=
40 hrs/change x 4 changes/yr |
$3,200
|
4 man-hrs/sump
x 10 sumps=
40 hrs/change x 1 change/yr |
$800
|
|
Totals,
Coolant Related |
$11,
840
|
|
$2,960
|
|
ANNUAL SAVING, COOLANT RELATED COSTS
|
$8,800
|
 |
 |
|
|
|
| MACHINE TOOL RELATED COSTS: |
| Tooling Costs |
Est. annual tooling costs $10,000/machine, est.
savings of 10% with clean coolant, or $1000 per machine/year
x 10 machines |
$10,000
|
Machine Downtime
for Coolant Change |
At 4 hours/machine/change, saving with clean
coolant = 3 changes/year, or 12 hours/machine/year x 10 machines |
120 machine-hrs
|
| Improved Parts Finish |
With clean coolant, less work required. Savings
are shop-specific |
?
|
| Improved Machine Production |
With clean coolant, less machine downtime for
adjustments
to maintain dimensional specifications. Savings are shop-specific. |
?
|
| Improved Working Conditions |
Elimination of oily parts, improved working
conditions.
Savings are shop-specific |
?
|
|
ANNUAL SAVINGS, QUANTIFIABLE MACHINE
TOOL RELATED COSTS
|
$10,000
|
|
TOTAL ANNUAL SAVING, QUANTIFIABLE COSTS
|
$18,880
|
| PAYOUT CALCULATION |
Cost of coolant cleaning equipment: One Keller
TKO-10 per machine, |
|
|
$695 per machine, or $6950 for 10 machines.
|
PAYOUT TIME, YEARS
|
0.37
|
| ROI CALCULATION |
| Annual Return on Investment (ROI):
$18,880/$6950 |
ROI
|
|
272%
|
To calculate the payout on Keller Pump/Skimmers to remove
tramp oil and suspended solids from coolant, we use the
case of a cell or shop with 10 machine tools holding 800
gallons of coolant. The cost savings from using effective
coolant cleaning equipment fall into two categories:
1) Savings from extending coolant life, and
2) Savings from improving machine tool performance
The bases for the calculations are stated above. A shop
can revise our calculations using its own cost data.
Coolant Related Cost Savings
Based on thousands of shop installations, coolant maintained
by Keller separators will have a life of at least one
year, while coolant with ineffective or no cleaning equipment
usually has a life of about 3 months. The savings are
the reduced cost of coolant makeup and disposal, and the
labor needed to clean and change each sump.
Total calculated savings are $8,880 per year.
Machine Tool Related Cost Savings
All shops state that machines "run better" with
clean coolant. While the savings from most of the improvements
are shop-specific, we can estimate savings in tooling
costs. Numerous shops report savings of 20% to 50% in
tooling costs after installation of Keller separators.
For the above calculation we used a conservative 10% saving
on $10,000 annual tool costs per machine, or $1,000 per
machine. The other machine tool related costs are significant
but shop-specific.
CONCLUSION: Calculated annual savings $18,880
for an investment of $6950 in Keller separators;
Payout 0.37 years, ROI 272%. The shop-specific
savings in machine tool related costs will further reduce
the payout time and increase the annual ROI.
|
|
