UPGRADE JUSTIFICATION WORKSHEET


Please enter your amounts in the corresponding boxes

REDUCED INSPECTION TIME
X X = X  .40  0
Hours to Inspect
Part In Process
 Internal Labour
Rate per Hour
 Parts per
Month
 Cost to Inspect
Parts
 40% Est. Increased
Efficiency per Month
Labour Savings with
Upgraded CMM Per
Month
X X = 0 X  1  0
Hours to Generate
Inspection Report
 Internal Labour
Rate per Hour
 Parts per
Month
 Cost to Generate
Reports
 100% Increased
Efficiency - Reports are
Automated
Labour Savings with
Upgraded CMM Per
Month
REDUCED PRODUCTION MACHINE DOWNTIME
X X = 0 X  .25  0
Idle Hours due to
down time
 Internal Labour
Rate per Hour
 Parts per
Month
 Cost of Idle Labour
per Month
 25% Est. Reduction
in Idle Labour
per Month
Labour Savings with
Upgraded CMM Per
Month
  X  .25  0
Lost Production Costs25% Est. Reduction
in Lost Production
Costs per Months
Labour Savings with
Upgraded CMM Per
Month
REDUCED SCRAP & REWORK
  X  .05  0
Cost of Monthly
scrap
5% Est. Reduction
in Scrap rate
Savings by Reducing
Scrap with
Upgraded CMM
  X  .20  0
Cost of Monthly
Rework
20% Est. Reduction
in Rework rate
Savings by Reducing
Rework with
Upgraded CMM

Total Savings Per Month 0  

Payback in Months  =Cost of CMM Upgrade
Total Savings per month
  0 0
 Cost of CMM Upgrade Total Savings Per MonthPayback in Months
Payback in Years  =Payback in Months
12
  0 Months 12 0  
 Payback in Months  Payback in Years