Man vs Machine
Man vs Machine
(OP)
I'm trying to develope a simple calculator (in Excel)to compute machine hourly rate and operator hourly rate, combined with net profit, in order decide whether to run 1 machine with one operator (eg. with thruput efficiency of 97%) or two machines with one operator (eg. with thruput efficiency of 66%). Inputs would be; 1)hourly rate of machine (eg. $40/hr) 2)hourly rate of operator (eg. $35/hr)3) thruput (eg. 236 pc/day) of both one operator running one machine and thruput (eg. 320 pc/day) of one operator running two machines. 4) Value per unit (eg. $5.36 ea) Output would be 1) profit per hr according to the resources given. Anyone have any ideas? It would be greatly appreciated. Thanks





RE: Man vs Machine
Furthermore, is there any possibility that if you have 2 machines/1 operator that your quality problems increase?
If not, and it the function of the operator is basically feed the machine and take out the final product, then your setting of 2 machines/1operator will be always more profitable (in USD). It is just a question of balancing your line in order to not have the machines stopped at the same time (either waiting for raw material or to be removed the final product).
In your case you don't even need a Excel spreadsheet. Let's look to your figures:
Cenario (again without raw material costs.Assuming that raw material costs are proportional to quantity):
1 machine/1 operator Assuming 8h/day:
Costs:40*8+35*8=600USD
Nr.pieces:236/day
Cost/piece:2.542USD
Profit (assuming that you sell as you produce):
236*5.36-600=664.96USD
Cenario 2:
2machines/1operator:
Costs:40*2*8+35*8=920USD
Nr.pieces:320/day
Cost/piece:2.875USD
Profit:
320*5.36-920=795.2USD.
The bottom line is that you have slightly extra costs/piece in cenario 2, but since you sell more, in the end your profit(in USD) grows.
Unless I misundertood your problem, this is a fairly easy thing to calculate.
RE: Man vs Machine
TTFN
RE: Man vs Machine