CASE STUDY

PEFORMING ROR ANALYSIS FOR $3$D PRINTER AND IIOT TECHNOLOGY

Background

Software used in $3$D printer systems manufactured by Spec$-$

trum LASER Corp. is currently able to automatically develop

hollows, shells, and "tree supports" to save development

time. Network printing for use on multiple machines and at

different locations globally is available. New software, called

JIT II$,$ is being beta tested that will allow IIoT$-$type $($Industrial

Internet of Things$)$ connections between machines at distant

locations. When onboard monitoring sensors detect that a

part is about to fail, or it is time to replace one of several high$-$

profile parts, the JIT II software will automatically queue the

part's manufacturing code onto a $3D$ printer that is detectedto be locally idle or ready. The company believes it can de$-$

sign and produce the JIT II software, the $3$D printers, and the

accompanying computer equipment necessary to place this

technology in a wide variety of harsh environments $-$ chemi$-$

cally toxic to humans, in flight, underground in mines, on the

ocean floor, in war$-$torn areas, etc.

Information

For this case, we will analyze the available computers that

can provide the server function necessary to make this inter$-$

linking available and successful. The first cost and other pa$-$

rameter estimates, including expected contribution to annual

net cash flow, are summarized below.

The life estimates were developed by two different individuals:

a design engineer and a manufacturing manager. They have

asked that, at this stage of the project, all analyses be performed

using both life estimates for each system.

Case Study Exercises

Use spreadsheet analysis to determine the following:

If the MARR $=12\%,$ which server should be selected?

Use the PW or AW method to make the selection.

Use incremental ROR analysis to decide between the

servers at MARR$=12\%.$

Use any method of economic analysis to display on the

spreadsheet the value of the incremental ROR between

server $2$ with a life estimate of $5$ years and a life estimate

of $8$ years.

KINDLY PROVIDE ME WITH A COMPLETE SPREADSHEET OF THE INCREMENTAL ROR BETWEEN SERVER $2$