©
COPYRIGHT 2000 THE ESAB GROUP, INC. LESSON
IX 9.8 AMORTIZATION
OF EQUIPMENT COSTS Calculations
show that you can save $7.00 per pound of deposited weld metal by switching
from E7018 electrodes and the SMAW
process to an ER70S0-3 solid wire using the GMAW process.
However, the cost of the necessary equipment (power source, wire feeder
and gun) is $2,800.
How long will it take to amortize or regain the cost of the equipment knowing
that the deposition
rate of the ER70S-3 is 7.4 lbs/hr and the operating factor of the GMAW process
is 50%? The formula is:
Equipment Cost
$ Savings/Lb (Deposition
Rate x Operating Factor) = Man Hrs ÷
400 ÷
3.7 = Man Hrs Substituting
the values in the formula:
2,800
7.00 ÷
(7.4 x .50) = Man Hrs
If we divide 108 into eight hour days
(108 ÷ 8 = 13.5) the deposited weld metal savings of one
man working an eight hour day for 13-1/2
days will pay for the cost of the equipment.
