RED-E-SET Cost Justification Worksheet

User Directions: Fill in Yellow Data Fields

A. Number of Shift per Day 1 D. Estimated Equipment Opportunity Cost/Hr.:
B. Number of Days per Week 5 E. Total Number of SMT lines
C. Number of Weeks per Year 50 F. Personnel per line

CHANGEOVER PER LINE REWORK DUE TO IMPROPER SUPPORT

G. Number of changeovers per day, per line (all shifts): 5 K. Average Quantity of Boards per Shift:
H. Est. Equipment Cost/Hr.: use cost of all equip affected by downtime $200 L. Average Yield:
I. Est. Burdend Labor Cost/Hr.: $40 M. Est. Cost of Rework per Board: Parts & Labor
J. Est. Equip. Downtime per Changeover due to tooling changeover (% of hr.): 50% N. % of Support Related Defects:

Total Rework Cost

Total number of hours down due to tooling changeover 2.5 Day Week
$500 $2,500
Equipment Downtime and Labor Costs: Fixture Related Rework Costs per Day
Day Week Month Year $75 $375
Downtime $500 $2,500 $10,750 $125,000 Total Cost of Fixture Related Rework per Average Wo
Labor $200 $1,000 $4,300 $50,000
Total $700 $3,500 $15,050 $175,000 OPPORTUNITY COST LOSS DUE TO CHANGEO
Total Cost of Equipement Downtime and Labor Costs Per Line: $175,000 Day Week
Total Cost of Equipement Downtime and Labor Costs ALL Line: $350,000 $1,250 $6,250
Downtime in Hours

Hrs/Lines 2.5 12.5 53.75 625 Decrease in Changeover Time With Red-E-Se
Hrs/All Lines 5 25 107.5 1250 1. Percent improvement in Changeover with RES (%o
Cost per Hour due to Downtime and Labor Costs $ - 2. Percent improvement in Quality using RES

Total Savings due to Decreased Changeover Time $105,000 Est. Capital Cost of Red-E-Sets
Total Savings due to Decreased Rework $5,625 ROI in Weeks
Total Revenue due to Improved Uptime $93,750
ANNUAL SAVINGS

Total Savings and Revenue Increase Implementing Red-E-Set $ 204,375

 $500
2
2

500
95%
$20
15%

Month Year
$10,750 $125,000

$1,613 $18,750
e Working Yr. $18,750

GEOVER
Month Year
$26,875 $312,500

-E-Set
S (%of hour) 30%
30%

$10,000
2.5

ROI WEEKS

2.5