This document compares the current and proposed costs of engine crankcase housing supplies using two different metrics: machine cost per hour and lost revenue per hour. Under both metrics, the proposed supplies approach results in lower annual costs than the current approach. Specifically, the proposed approach reduces annual supply costs from over $16,000 to less than $6,000 by decreasing coolant changes from 6 to 1 per year, reducing filter bag changes from 36 to 3 per year, and lowering pump failures from 3 to 1 per year.

1. Engine Crankcase Housing
25-Jun-07
Using Machine Cost per Hour Using Lost Revenue per Hour
Current with Proposed with Lost
Current with Cost/Hour Proposed with Cost/Hr Revenue/Hour Revenue
Supplies
Coolant Changes
System Size 900 900 900 900
Coolant Cost $ 15.00 15 $ 15.00 15
Coolant Concentration 7% 7% 7% 7%
System Cost 945 945 945 945
Changes per year 6 1 6 1
Total Cost $ 5,670.00 $ 945.00 $ 5,670.00 $ 945.00
Coolant Disposal
System Size 900 900 900 900
Changes/year 6 1 6 1
Gallons Disposed 5400 900 5400 900
Cost per gallon $ 0.20 $ 0.20 $ 0.20 $ 0.20
$ 1,080.00 $ 180.00 $ 1,080.00 $ 180.00
Trip Charge for disposal $ 250.00 $ 250.00 $ 250.00 $ 250.00
Number of Disposals 3 1 3 1
$ 750.00 $ 250.00 $ 750.00 $ 250.00
Additives (biocide/defoam, etc)
Current vs. proposed costs $ 1,200.00 $ - $ 1,200.00 $ -
Filters
Number of machines 2 2 2 2
Number of bags/machine 4 4 4 4
Cost per bag $ 5.00 $ 5.00 $ 5.00 $ 5.00
Bag changes/year 36 3 36 3
$ 1,440.00 $ 120.00 $ 1,440.00 $ 120.00
Roll Media Cost $ - $ 2,400.00 $ - $ 2,400.00
Pump Failures
Number of Failures/year 3 1 3 1
Pump Cost $ 2,000.00 $ 2,000.00 $ 2,000.00 $ 2,000.00
$ 6,000.00 $ 2,000.00 $ 6,000.00 $ 2,000.00
Tooling
Tooling Cost $ 10.00 $ 10.00 $ 10.00 $ 10.00
Tooling changes/year 10 10 10 10
$ 100.00 $ 100.00 $ 100.00 $ 100.00
Supplies Subtotal $ 16,240.00 $ 5,995.00 $ 16,240.00 $ 5,995.00