Simple Solutions That Work! Issue 16

FLEXIBLE MANUFACTURING & ENGINEERING TRENDS 39 Contact: JIM GAULDIN jim.gauldin@palmermfg.com The fifth evaluation point are the maintenance costs. You will need to factor in depreciation as well as the ongoing maintenance. This is another area where it is probably a good idea to speak to other companies that are using the equipment. A good example of maintenance costs with reference to sand transporters is pipe wear. How often and how much does it cost to repair or replace sections of piping? What is the cost associated with having to shutdown the plant because you have blown a hole in the pipe and filled the area with silica dust? If you experience a maintenance issue, how long will it take to repair and get back into production? When times get tight or staffing is low, many operations try to skip or stretch out service times and schedules, but that is a slippery slope. Make sure you have included all the maintenance costs in your calculations, including consumables (pipes and seals/ gaskets, etc.), and where you can source the spare parts. If the maintenance team doesn’t need to spend time working on the transporter or patching/replacing pipe, they can focus their time and the company’s resources on other more critical maintenance tasks. This brings you to the next point of evaluation which is after sales support/service. Ask the supplier about the after sales support they provide. Does the equipment require routine maintenance that can be performed by internal maintenance personnel, or does it require a more specialized technician? Does the supplier stock spare parts? Where can you get spare parts, local, domestic, or foreign? Do they provide on-site service from a trained technician or is a preventative maintenance program available? If something was to go wrong or you need assistance with the equipment, it is good to know that the necessary resources are available to receive prompt support by just picking up the phone. How fast can I get my sand transporter operational again? Finally, while many would argue that price should be at the top of the list of your decision- making process, it is good to remember that the initial price doesn’t include the Total Cost of Ownership (TCO). There are many things that add to the TCO over the lifetime of the product. These could include installation costs, operating costs, maintenance costs, production interruption costs, and user efficiency. Using this evaluation process will increase the likelihood of developing an accurate as well as achieving the desired ROI. These seven criteria will streamline the decision-making process, add to the bottom line, and reduce the buying cycle. This process will maximize the positive impact of the CapEx budget on production, quality, safety, and profitability.