Question
Your roll forming machine runs continuously due to customer demand in your jobshop environment. Rolling die changeovers take 2 hours on average and are done
Your roll forming machine runs continuously due to customer demand in your jobshop environment. Rolling die changeovers take 2 hours on average and are done every 3 days in this operation which runs three shifts, 350 days per year. Down time cost is $185/hr. If you have a proposal to reduce the average changeover time by 42 minutes, and the capital costs for this implementation is $97,000. Is this within a budget to meet a 2-year payback requirement?
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