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Economics of Web Cleaning

This article submitted by Peter Mariani on 01/22.

The Economics of Static Electricity You would be shocked at what static electricity and the associated contamination costs your company every day. The loses from static electricity come in many different forms such as defects in product, lost capacity, operator discomfort, customer dissatisfaction with delivery and or product quality. It has been estimated that static electricity cost the electronics industry over $4 Billion in 1996! Estimates for the converting industry are just as high. Controlling static and the contamination associated with it are an added source of profitability and a competitive advantage. ElectroStatics offers a complete line of static control equipment as well as web cleaners used to remove the associated contamination. The investment analysis below outlines some of the costs of static electricity as well the Return on Investment (ROI) if a web cleaning system is installed. Static bars and blowers have an even higher return (due to the much lower investment) when contamination is not an issue. Some real costs not take into consideration in the analysis are: · Cost of Customer service in missed deliveries, or poor product quality. · Potential lost customers. · Lost capacity, which will mean more investment in added capital equipment. Please take time to review the investment analysis and review the operation of your production line. Give ElectroStatics a call and lets see if we can start improving the return on you operation by taking the shock and cost out of static electricity. Assumptions for the Investment analysis for the ElectroStatics Web Cleaning Systems: · 60" web width · $2MM total investment in equipment · 6000 hour operating schedule per year · Gross Sales for the line $6MM · Gross Margin 20% of Sales · 10 year deprecation schedule · 1.5% unscheduled down time attributable to static and or contamination. · 75% effectiveness of the ElectroStatics Web Cleaning System Investment Analysis For: ElectroStatics Web Cleaning System Investment in Web System - Web System and Dust Collector $21,000.00 - Shipping $1,000.00 - Installation $3,000.00 Total Installed Cost $25,000.00 Cost of Unscheduled Down Time per Occurrence (assuming two hours of down time per occurrence) - Labor: (2 Technicians @ $60 per hour) $240.00 - Wasted material (100# @ .50 per lb.) $50.00 - Inspection of suspect material (one hour @$60 per hour) $60.00 - Lost gross profits; 20% of gross sales for $400.00 2 hours ($6,000,000 / 6000 hours) Total cost per occurrence $750.00 Total cost per Hour of Downtime $375.00 Savings with ElectroStatics Web Cleaning System Cost of Static and contanination caused Downtime (2% X 6000 hours = 120 hours x $375) $45,000.00 Savings at 75% effectiveness $33,750.00 Pay Back Period $25000.00 / $33750.00 < 9 months Return on Investment Annual Savings $33,750.00 Annual Operating Cost $(1,000.00) Depreciation on Web Cleaning System $(2,500.00) Total $(3,500.00) Net Savings $30,250.00 Initial Investment $25,000.00 Return on Investment in First Year 121% This is copy protected by ElectroStatics Phone: Fax:

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