Current banding on the Stahl folders is manual which reduces machine speeds, output and increasing contract staff. The delta 703 which increase folding machine output and allows the folder to be run by one operator.
Increase output of 25%
Drives additional 2 hours per day on folder
Machine is supported during production by one operator, thus reduces Contract Labor (salary one year $ 25,480).
Below is the increase output of 25% using the automatic banding machine. Based on a current job of 107,000 pieces with revenue on Stahl Folder $804.80 or .0075 per piece.
If finishing operates at 100% capacity specific to folding the new bander can generate an additional 26,750 pieces at .0075 each or $20.06 per hour in revenue.
Daily Revenue $ 128.38
Weekly Revenue $ 641.92
Monthly Revenue $ 2,781.65
The Palamides delta 703 delivery unit would cost $ 144,000.00
7 year monthly depreciation amount $ 1,747.24
7 yearly depreciation amount $ 20,571.43
The Palamides delta 703 is an automatic banding delivery system which streamlines the production process. With the limited number of Team members on folders in finishing, getting the Palamides delta 703 to attach to the Stahl folder we can increase our productivity and not have to increase our labor force.
On June 1, 2015 $4,398.30 will come off the depreciation schedule. The Palamides delta 703 monthly depreciation amount will be under the budget.