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| THE COST OF OIL ON FLAT-ROLLED STEEL |
| AN INTERACTIVE ESTIMATOR FOR FABRICATORS |
| TO ANALYZE THE COST OF SCS vs. P&O |
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| Enter the information for your fabricating/manufacturing operations, in the green cells below. Where actual values are not available, enter estimates or vary inputs to see sensitivities. Place cursor over red button in front of each colored cell for explanation. |
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P&O consumed per year (coil and sheet):  |
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tons
Required Input- Enter your total purchases of P&O sheet steel, both coil and sheet, for an average year.
SCS is often sold at the
same price as P&O, so
the P&O cost penalty is
zero. If your SCS price is less (or more) than P&O, enter your prices for both in the green boxes below and click on the override checkbox.
Required Input- Enter in inches. For converting gauge to inches click down on the red button.
Required Input- The hourly wage paid to factory labor.
Cost of extensive P&O, paint prep plus added laser cutting labor since you cannot laser "double stacks" when using P&O.
Total cost, in lost labor and scrapped sheets, from handling accidents, skin irritation, jams from stuck sheets, etc.
Labor needed to clean conveyors, machines, tools, controls, etc. to remove the grime & dirt that accompanies P&O.
Not Required, but enter "0" if you don't use Capacity Calculations. Otherwise, enter sales of products with P&O steel content.
Not Required, but enter "0" if you don't use Capacity Calculations. Otherwise, enter value less than 100. No penalty is applied for capacity of 75% or less.
Note: If you destack sheets, some capacity is lost to P&O (sheets sticking and stopping production lines) even if you did not select a bottleneck operation.
Reduced output from line interruptions when P&O blanks stick and from more frequent downtime to clean equipment.
P&O reduces output with slower laser speed, more frequent replacement of lenses & filters, and no ability to cut "double stacked" blanks.
P&O sheets slow material handling by sticking and more frequent shutdown of conveyors, stackers, etc. for cleaning.
Extensive paint prep for P&O uses multi-stage process and more handling. Pre-paint area can be reconfigured for SCS "lean" process to increase throughput.
More frequent paint problems & repaint for P&O from incomplete pre-paint, spot rust, and manual painting done "outside the booth."
Use more handling gloves, rags, solvent and cleaner with P&O.
More frequent replacement of laser lenses and exhaust filters with P&O
Welding P&O consumes more filler wire, plus more frequent respirator cartridge replacement to protect from weld fumes.
Includes solvents/prep solutions, applicators, storage & disposal costs, exhaust filtering and respirators.
Lower output due to more prep work and more frequent weld rejects with P&O.
Reduced throughput due to P&O blanks sticking at feed, at transfer and sticking against tooling.
Wage rate plus benefits,
payroll taxes, etc.
Computed as 1.5 x wage
rate. DOES NOT
INCLUDE OVERHEAD
COSTS (burden).
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| Average thickness of this P&O material: |
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inch |
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| Average manufacturing labor wage rate: |
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$/hour |
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| Average manufacturing total comp. rate: |
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$/hour |
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| Number of direct employees involved in.. fabricating/handling/painting sheet steel:. |
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| Check the box for each manufacturing operation listed below that you do "in-house" |
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| Blanking |
Shearing |
Folding/Bending |
Grinding |
| Destacking |
Press Brake |
Roll Forming |
Painting - Wet |
| Robotic Welding |
Stamping |
Laser Cutting |
Painting - Powder |
| Manual Welding |
Punching |
Plasma/Torch Cut |
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| MATERIAL CHOICE COST PENALTY: |
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/yr. more to buy P&O |
| based on price difference between P&O and SCS |
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| Check box to override calculator with your own values, which you must enter below: |
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| Your price for P&O: |
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$/ton |
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| Your Price for SCS: |
click here for more info |
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$/ton |
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| LABOR-RELATED OIL COST PENALTY: |
based on added labor costs to deal with & remove oil |
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| Direct Cost Penalty: |
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/yr. |
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Lost Time Penalty: |
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/yr. |
| Non-Direct Time Penalty: |
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/yr. |
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| TOTAL PENALTY ON LABOR: |
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/yr. more to use P&O |
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| CAPACITY-RELATED OIL COST PENALTY: |
based on reduced output from dealing with oil issues |
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| Annual sales of product from this facility with significant P&O steel content: |
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$ (US) |
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| At what percentage of the facility's output capacity do you normally operate? |
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| Check the box for any operations below that constrain plant output (a "bottleneck") |
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| Blanking |
Stamping |
Laser Cutting |
Paint Prep |
| Welding |
Roll Forming |
Material Handling |
Painting |
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| Oil Cost Penalty from reduced output at "bottlenecks" (click red buttons for explanation): |
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| Blanking: |
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Laser Cutting: |
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| Welding: |
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Material Handling: |
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| Stamping: |
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Paint Prep: |
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| Roll Forming: |
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Painting: |
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| TOTAL PENALTY ON CAPACITY: |
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| CONSUMABLES OIL COST PENALTY: |
from more cleaning, filtering, maintenance with P&O |
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| Cleaning & Handling Supplies: |
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/yr. |
| Laser Consumables: |
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/yr. |
| Welding Consumables: |
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/yr. |
| Cleaning/Paint Prep Supplies: |
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| TOTAL PENALTY ON CONSUMABLES: |
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/yr. more to use P&O |
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| TOTAL ESTIMATE OF ANNUAL COST |
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| PENALTY FROM BUYING & USING P&O: |
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| Copyright © 2005 The Material Works Ltd. |
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