RED-E-SET

A. Number of Shift per Day B. Number of Days per Week C. Number of Weeks per Year

Cost Justification Worksheet

1 5 50 D. Estimated Equipment Opportunity Cost/Hr.: E. Total Number of SMT lines F. Personnel per line

User Directions: Fill in Yellow Data Fields

CHANGEOVER PER LINE

G. Number of changeovers per day, per line (all shifts): H. Est. Equipment Cost/Hr.: use cost of all equip affected by downtime I. Est. Burdend Labor Cost/Hr.: J. Est. Equip. Downtime per Changeover due to tooling changeover (% of hr.): 5 $200 $40 50%

REWORK DUE TO IMPROPER SUPPORT

K. Average Quantity of Boards per Shift: L. Average Yield: M. Est. Cost of Rework per Board: Parts & Labor N. % of Support Related Defects: Total Rework Cost Day

Total number of hours down due to tooling changeover Equipment Downtime and Labor Costs: Day Week Month Downtime $500 $2,500 Labor $200 $1,000 Total $700 $3,500 Total Cost of Equipement Downtime and Labor Costs Per Line: Total Cost of Equipement Downtime and Labor Costs ALL Line: Downtime in Hours Hrs/Lines 2.5 12.5 Hrs/All Lines 5 25 Cost per Hour due to Downtime and Labor Costs Total Savings due to Decreased Changeover Time Total Savings due to Decreased Rework Total Revenue due to Improved Uptime 53.75 107.5 $

2.5

Week

Year $10,750 $4,300 $15,050 $125,000 $50,000 $175,000 $175,000 $350,000 625 1250 $105,000 $5,625 $93,750

$500 $2,500 Fixture Related Rework Costs per Day $75 $375 Total Cost of Fixture Related Rework per Average Working Yr.

OPPORTUNITY COST LOSS DUE TO CHANGEOVER

Day $1,250 Week $6,250

Decrease in Changeover Time With Red-E-Set

1. Percent improvement in Changeover with RES (%of hour) 2. Percent improvement in Quality using RES Est. Capital Cost of Red-E-Sets ROI in Weeks ANNUAL SAVINGS

Total Savings and Revenue Increase Implementing Red-E-Set

204,375

$500 2 2

500 95% $20 15%

Month $10,750

Year $125,000 $18,750 $18,750

$1,613 rage Working Yr.

CHANGEOVER
Month $26,875 Year $312,500

ed-E-Set
30% 30% $10,000 2.5 ROI WEEKS

RES (%of hour)

2.5