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ProtoTRAK EMX Self Assessment Guide

1. Self Trained Hours estimated initial training use 3 to guess 3 Plus 3 days at 75 productivity costs 25 of the day 3x8x 25 6 Equals hours spent on training 9 Times the hourly labor cost from line 7 X 22 50 Equals the training cost 202 50 Line 16 Lifetime maintenance costs The ProtoTRAK EMX is precision technology equipment and it is almost certain to require spare parts and service over its lifetime this is the mill lifetime used in this self assessment guide 7 years SWI has kept the service costs to an absolute minimum with the following measures v Design The ProtoTRAK EMX consists of few components so there is very little to go wrong v Modular Components All of the electrical components are in modules that are easy to trouble shoot and replace v Self Service An illustrated self service manual is included with every ProtoTRAK EMX Our warranty and exchange policy explicitly covers the damage done to our parts for mistakes made in self service Additional technical support is available through the web site or our toll free service department phone number 1 SWI factory direct sales and many distributors include training along with the installation price of 500 You would put 0 here 10 Southwestern Industries Inc ProtoTRAK EMX Self Assessment Guide v Exchanges SWI maintains a stock of quality rebuilt parts in fully tested like new condition to be exchanged for failed components This
2. 512 1560 33 pay for the lifetime cost of the ProtoTRAK EMX a 4 40 Divide line 23 by line 37 for the number of billed hours at 9360 97 89 your shop rate required to pay the lifetime cost of the 96 hours Proto TRAK EMX Comparisons 1 Total hourly costs of running a mill now and with a ProtoTRAK EMX On an hourly basis the difference in cost is trivial You are probably spending more per hour on coffee than this not to belittle the value of coffee mind you With labor costs high and rising it is not hard to see why even a small improvement in productivity completely overwhelms the insignificant increase in costs Costs of owning versus value of time saved If the value of lifetime savings of owning the Proto TRAK EMX is greater than the lifetime costs of owning a ProtoTRAK EMX then you will be richer for having a ProtoTRAK EMX If the difference is a lot you should get a ProtoTRAK EMX immediately If the difference is a little you should probably get one anyway Just how long are you going to stick with 1960 s technology anyway Hourly costs of owning versus hourly value of time saved In case you are concerned with the long time horizon of seven years this will help you to see the picture in smaller time intervals Cost of the machinist versus the equipment he uses We put this in here for a little bit of perspective Too many shops try to save money by economizing on equipment But the cost of equi
3. If retrofit enter the knee mill cost from line 1 9500 00 13 Shipping cost 300 00 14 Installation cost 112 50 15 Training cost 202 50 16 Lifetime maintenance costs 250 00 17 Total lines 11 12 13 14 15 and 16 for the cost of a mill 18860 00 with a ProtoTRAK EMX 11 Southwestern Industries Inc ProtoTRAK EMX Self Assessment Guide Lines 18 and 19 Divide by 7 and then by 2000 to get cost per hour This is the same thing we did to get the mill cost per hour for the milling machine before the ProtoTRAK EMxX is added Example 18 Divide line 17 by 7 to get cost per year 2694 29 19 Divide line 18 by 2000 to get cost per hour 1 35 Line 20 Total lines 7 9 and 19 We add our new machine hourly cost with the overhead and labor hourly costs to come up with the total hourly cost for running the mill with a ProtoTRAK EMX Example 20 Total lines 7 9 and 19 This is the total hourly cost for 22 50 5 63 running a mill with a ProtoTRAK EMX 1 35 29 48 Line 21 Subtract line 10 from line 20 for the increase in hourly cost Line 10 is the total hourly cost for running the machine with a DRO Line 20 is the cost for running a machine with a ProtoTRAK EMX This will show how much extra it costs an hour to run the machine with a ProtoTRAK EMX Line 22 Divide line 21 by line 10 for the percentage increase in hourly cost The percentage in
4. Parts Drilling Multiple Parts Bolt Hole Drilling Straight Milling to Dimension Fly Cutting Blending Radii Setting up for arc Machining Arc Machining Pocket Milling xX O X XxX XxX X X X X X X l 100 Total Enter total in line 28 18 Southwestern Industries Inc ProtoTRAK EMX Self Assessment Guide Line 29 Average the numbers on lines 25 through 28 If you have used more than one method to come up with estimates for time savings you may want to average them here Example The following estimations were calculated and then averaged on line 29 Method 1 Guess 25 Enter a guess for the amount of time saved over manual 50 machining Method 2 Comparison Parts 26 Comparison Part 1 time savings 62 27 Comparison Part 2 time savings 87 5 Method 3 Grading Work for Potential Savings 28 Time savings from grading worksheet 50 29 Average the numbers on lines 25 through 28 50 62 87 5 50 249 5 4 62 Line 30 Enter one of the estimates from lines 25 28 or the average from line 29 Choose between one of the estimates or the average The Value of the Time Savings Hourly Line 31 Multiply line 20 by line 30 This is the value of the time saved per hour Valuing time this way assumes that there is something to do with the time that is of the s
5. Line 33 Multiply line 32 by 7 years for the number of hours over the life of the equipment We use seven years as before because this is the number of years the IRS has us depreciate the equipment If you use the mill intensively you may wear it out faster Your number of hours per year in line 32 should be higher If you use the mill lightly increase the number of years or subtract a resale value from line 17 Line 34 Multiply line 33 by line 31 for the value of the time savings over the life of the ProtoT RAK EMX Examples Consider below a job shop with a lot of milling work so the mill is used consistently 30 hours a week 32 Enter the number of hours per year you estimate using 30 x 52 weeks the milling machine with the ProtoTRAK EMX 1560 33 Multiply line 32 by 7 for the number of hours over the life 1560 x 7 of the ProtoTRAK EMX 10920 34 Multiply line 33 by line 31 for the value of the time 18 28 x 10920 savings over the life of the ProtoTRAK EMX 199 617 60 And below consider a support shop that expects to use the ProtoTRAK EMX about half the time 32 Enter the number of hours per year you estimate using 20 x 52 weeks the milling machine with the ProtoTRAK EMX 1040 33 Multiply line 32 by 7 for the number of hours over the life 1040 x 7 of the ProtoTRAK EMX 7280 34 Multiply line 33 by line 31 for the value of the time 18 28 x 7280 savings over the
6. and he hasn t tried to get you to buy one get another friend This one doesn t really like you Line 25 Entera guess for the amount of time saved over manual machining You can ask someone who uses one or just think up a number and put it in 13 Southwestern Industries Inc ProtoTRAK EMX Self Assessment Guide Method 2 Comparison Parts This method involves some work but can be very precise You may want to machine the comparison parts below and keep track of your time or you could just look at the parts estimate what it would take you to machine them and then fill in the worksheet A semi skilled operator using a ProtoT RAK EMX while being timed machined the following parts The 5 x 5 x 1 aluminum blocks were held in a vise Line 26 Comparison Part 1 time savings 281 THRU 500 C BORE x 0 065 DP 5 PLCS Ly 4 00 3 50 2 850 _ 1 05 Time used on this job Set up put the part in the vise and establish the DRO 0 0 position min sec 5 00 Time required to program 1 52 Time machining 3 tools used 2 48 Total time 9 40 min 16 hour Your numbers Example Your time to make the part 42 Minus our time to make the part 16 hour 16 hour The time savings 26 your time to make the part 42 the percentage savings enter into line 26 62 or 62 14 Southwestern Industries Inc ProtoTRAK EMX Self Assessment Guide Line 27
7. for the ProtoTRAK EMX SWI supports products long past seven years For proof consider that most of the original ProtoTRAK s sold in the mid to late 80s are still eligible for exchanges from our excellent Express Exchange Program Example 23 Subtract line 1 from line 17 for the additional costs for 18 860 9500 buying a ProtoTRAK EMX 9360 00 24 Multiply line 7 by 2000 x 7 for the labor cost of the 22 50 x 2000 x 7 machinist over the life of the ProtoTRAK EMX not 315 000 00 including overhead Time Savings Assessment In the previous section you will have shown an increase in the cost of running your mill as a result of buying a more expensive piece of equipment If this were the end of the story you would not want to buy a ProtoTRAK EMX because it will cost you more to run the mill that way That is not the end of the story however because you use that mill plus labor to make parts and the number of parts you make for the labor you spend is important So the question is can you make enough additional parts with the same labor or save enough time on the same number of parts to cover the cost of the ProtoTRAK EMX Method 1 Guess There are tens of thousands of ProtoTRAK s and other TRAK CNC s made by SWI in machine shops all over the developed world So this information is definitely out there You probably know someone who uses one In fact if you have a friend who you know uses a ProtoTRAK
8. generations unlike our competitors in order to keep the resale value high We also make good money on service parts and that is why we stay in the business of making service parts 2 Increase the number of years of life in line 33 from seven to ten or even more SWI s commitment to service and parts means that you can count on keeping the machine running at a reasonable cost for at least ten years after you purchase it We have a 40 year record that proves this commitment If your shop has a knee mill with a DRO that is hardly used your people should be commended for their good sense They know that mill is under equipped You can t blame people for avoiding it because they know it wastes a lot of time The trouble is unless you have a ProtoTRAK there aren t really good choices for how to do small lot work efficiently Some shops put everything on a machining center That can waste 20 Southwestern Industries Inc ProtoTRAK EMX Self Assessment Guide more time than working with a manual machine but people feel better about it because at least they are using technology Get a ProtoTRAK EMX and you will be surprised at how useful this simple versatile tool will be People will start putting some jobs on the ProtoT RAK EMX in preference to the machining center because it is just more efficient Many shops around the world know what it means when a job is a ProtoTRAK job It will profit your shop to find out what this means too
9. makes the solution to the problem a fraction of the cost it would be to replace with a new part See your SWI representative for a list of prices for service parts A reasonable estimation for ifetime service parts and labor costs would be 1000 This covers the replacement of one or two major components Be sure to deduct the cost of the maintenance and service for the DRO and power feed you will not need Maintenance Worksheet Service and maintenance costs estimated Minus DRO and power feed maintenance costs Equals the estimated lifetime service costs Example The maintenance costs for a system that had a computer module fail out of warranty in the fourth year that was replaced without a service call with SWI s unique self service program We will also subtract our estimation of the cost of one part replacement and service call for the DRO that we would have had to pay but didn t Service and maintenance costs estimated 500 00 Minus DRO and power feed maintenance costs 250 00 Equals the estimated lifetime service costs 250 00 Line 17 Total lines 11 12 13 14 15 and 16 for the cost of owning a ProtoTRAK EMX Example The typical cost to a shop of buying a Proto TRAK EMX as a retrofit and throwing the DRO and power feed that were on the machine in the garbage 11 Purchase price of the Proto TRAK EMX retrofit or complete 8495 00 machine 12
10. may even send every part with an arc toa CNC Saves the rotary table set up 90 of set up time Plus 35 50 cutting time Pockets Roughing Material Pockets are machined automatically with removal of all the material in the middle and finish cuts Multiple passes at different depths are easy This often saves all the machining time since the operator can be doing something else as the cutter works its way through the material 50 to 75 Use large multiplier if job lends itself to untended operation i e large work piece or tough material Add to above if contouring is required 16 Southwestern Industries Inc ProtoTRAK EMX Self Assessment Guide Line 28 Time savings from grading worksheet The grading method above can be used for mills that do a variety of work by estimating the amount of time the mill is used in a particular operation when it is used and then applying the time savings for that operation as suggested in the chart above Below are three examples and then a worksheet for you to calculate your own numbers for the way your shop uses the mill Example This example is for a knee mill that is used almost exclusively for drilling holes and squaring blocks It is also used a couple of times a week cutting slots The lot sizes range from 10 to 20 Type of operation time used X estimated total time in this time savings saved operatio
11. small multipliers if you average of 20 or more seconds per use one tool or only one position per tool hole Use larger ones for multiple holes or tools The ProtoTRAK EMX automatically figures 1 part 30 50 the position of each hole from the simple 2 10 parts 30 60 Bolt Hole data you enter from the print This saves 10 50 parts 50 70 Patterns the positioning time as shown above plus 3 5 minutes per hole calculating hole positions Use larger multipliers for multiple holes Straight Milling to Dimension The ProtoTRAK EMX figures tool path from the simple data you enter saving positioning and touching off tools Diagonals are machined without a special set up Critical dimensions or surfaces can be machined with finish cuts Each part 30 to 50 Use large multiplier if diagonals Straight Milling Dimensions Don t Matter e g flycutting Little or no savings if you already have a power feed None Blending Radii on Straight Cuts A tedious and error prone process for manual machining it is a single data input for the ProtoTRAK EMX It machines straight through radii without a pause saving 3 5 minutes for each radius for which you have the correct diameter mill or drill 30 minutes for each radius for which you do not Each part 50 to 70 Use smaller multiplier for one radii use larger for multiple Arc Machining This is so hard to do manually you
12. the hour but benefits like vacation and sick leave are accrued or earned over weeks or months The fact that the machinist gets paid to be on vacation means that the parts he makes cost you some vacation time The trick is to get all the various costs into a common term so that we can compare them Fortunately this is pretty easy to do In this guide we will calculate all costs by the hour The full cost of making parts includes v Material v Milling machine v Labor v Overhead The amount of material you use per job will be the same whether you use a DRO or a ProtoTRAK EMX Therefore we won t worry about it The other costs above will be calculated by the hour Line 1 Knee Mill Purchase Price This includes the milling machine freight in and the price of the power feed DRO and other equipment used on the mill but not the consumable tools and coolant Use the purchase price whether or not the mill is paid for or if it is financed The financing arrangement has to do with how your company is managing money not labor or machines Financing charges are accounted for simply in line 8 below To keep it simple we will assume no salvage value although we are always amazed at what people get for their used ProtoTRAKs Line 2 Divide line 1 by 7 years to get the cost per year We assume the mill lasts for seven years which follows the IRS s rules for depreciation 5 Southwestern Industries Inc ProtoTRAK EMX Self A
13. the milling machine In this line we account for your expectation of the utilization for the machine We make this estimate based on the slow inefficient DRO you are using now because the value of the timesavings comes from eliminating labor and overhead by investing in the ProtoTRAK EMX As a rule of thumb there are 2000 working hours per year If your mill is used only half the time you should enter 1000 here If your company works a lot of overtime or multiple shifts the 2000 hours per year can be much higher If the operator is not cranking the handles but is setting up making calculations planning or doing bench work to prepare to use the machine include this time in your estimate Using the ProtoT RAK EMX will save much of this set up time When utilization is less than 75 it is easy to make a fundamental logical error the mill isn t used all the time so it is not worth any investment at all This is a harmful conclusion because even if your shop doesn t use the machine all the time this is still not a good reason to use it inefficiently when it is used Poor productivity costs you a lot of money everywhere it occurs It is easy to correct for this error in logic if you do one of two things 1 Reduce the cost of the machine by subtracting a resale value in line 17 It is not unusual for a used ProtoTRAK on a milling machine to fetch half of its original selling price This is no accident We do a great job of supporting past
14. Comparison Part 2 time savings 1 00 5 00 215 4 00 a 100720 Set up put the part in the vise and establish the DRO 0 0 position min sec 5 00 Time required to program min sec 0 37 Time machining 3 36 Total time 9 13 min 15 hour Note since the pocket is machined at a single depth the operator can be doing something else while the part is being cut This reduces the time spent by the expensive person even more To figure your own possible time savings and the effect on your costs use the following worksheet Your numbers Example Your time to make the part 1 2 Minus our time to make the part 15 hour 15 hour The time savings 1 05 your time to make the part 1 2 the percentage savings 875 or 87 5 15 Southwestern Industries Inc ProtoTRAK EMX Self Assessment Guide Method 3 Grading Work for Potential Savings To get a rough idea of the time savings you may realize compare the work you do on your mills now with the potential time savings on the chart below Time Savings by Type of Operation Type of How the Saving Comes About Time Savings Operation For each hole the ProtoTRAK EMX 1 part 10 20 moves to position at 100 IPM If you have 2 10 parts 20 30 holes that are an inch or so apart the 10 50 parts 30 70 Drilling ProtoTRAK EMX will move to the next one Holes in about one second This saves an Use
15. The ProtoTRAK EMX Self Assessment Guide Document F10322 1 Version 051109 Southwestern Industries Inc 2615 Homestead Place Rancho Dominguez CA 90220 T 310 608 4422 F 310 764 2668 Service Department 800 367 3165 e mail sales southwesternindustries com service southwesternindustries com web southwesternindustries com Copyright 2007 Southwestern Industries Inc All rights are reserved No part of this publication may be reproduced stored in a retrieval system or transmitted in any form or by any means mechanical photocopying recording or otherwise without the prior written permission of Southwestern Industries Inc While every effort has been made to include all the information required for the purposes of this guide Southwestern Industries Inc assumes no responsibility for inaccuracies or omission and accepts no liability for damages resulting from the use of the information contained in this guide All brand names and products are trademarks or registered trademarks of their respective holders Southwestern Industries Inc 2615 Homestead Place Rancho Dominguez CA 90224 Phn 310 608 4422 Fax 310 764 2668 Service Department Phn 800 367 3165 Fax 310 886 8029 The ProtoTRAK EMX Self Assessment Guide Introduction DRO s were invented almost four decades ago Your world has changed a lot since then People have become more expensive Money and equipment have become downright Cheap co
16. This is the value of the time savings of Line 34 owning a ProtoTRAK EMX 3 Hourly costs of owning versus hourly value of time saved This is the increase in hourly costs of owning Line 21 a ProtoTRAK EMX This is the hourly value of the time savings Line 31 of owning a ProtoTRAK EMX 4 Cost of the machinist versus the equipment he uses Line 24 This is the cost of the person standing in front of the mill Line 17 This is the total cost for the piece of equipment he uses co Now that you ve done the hard work follow through and get that Proto TRAK EMX on order right away Southwestem Industries Inc Fax 310 764 2668 2615 Homestead Place Web southwestemindusties com Rancho Dominguez CA 90220 E Mail sales southwestemindustnes com Phone 310 608 4422 4 Southwestern Industries Inc ProtoTRAK EMX Self Assessment Guide Hourly Costs of Running a Mill in Your Shop Now You run a machine shop to produce parts You benefit from investments in productivity equipment like the ProtoT RAK EMX if you can either Make more parts with the same cost or make the same number of parts with less cost Many people get confused when sorting out costs because what things cost and how they are paid for are different For example you may pay for a machine with cash but the machine didn t cost you 10 000 the day you wrote the check and then nothing from then on Machinists are usually paid by
17. X in three ways v As a retrofit to a mill you already own v Ona TRAK mill v Retrofit by a dealer to a mill of another brand A word about retrofitting there is no reason to retire a milling machine in good condition in order to buy a ProtoTRAK EMX Retrofitting is highly recommended for shops that have mills that are less than 3 years old or even older if they receive little use When the milling machine wears out you can put the ProtoT RAK EMX on another one Line 12 If retrofit enter the knee mill cost from line 1 If you will retrofit to a mill in your shop you must still account for the cost of the mill even though you don t have to buy one It does not matter how old the mill is or whether or not it is paid for We are looking to calculate costs per hour and costs are incurred as the mill is used up not when it is purchased You should leave the cost of the DRO and power feed on the original machine purchase price even though they are going into the garbage It is a sunk cost that you can t do anything about but promise yourself to do better next time Examples 1 The ProtoTRAK EMX is purchased as a retrofit for the machine in the previous examples 11 Purchase price of the ProtoTRAK EMX retrofit or complete 8495 00 machine 12 If retrofit enter the knee mill cost from line 1 9500 00 2 The ProtoTRAK EMX is purchased as part of one of the fine knee mills offered by Southwestern Indus
18. aks insurance plans paid sick days vacation days etc If you don t have a number already calculated for you by an accountant 25 of wages is a good guess for most companies Use a lower number if your company has few benefits and a higher one if you work for a large company or a government agency Example A machinist making 18 00 per hour and typical benefits Hourly labor cost 4 Hourly wage 18 00 5 Benefits and social security taxes multiplier 25 6 Multiply line 4 times line 5 4 50 7 22 50 Add lines 4 and 6 to get hourly labor cost 6 Southwestern Industries Inc ProtoTRAK EMX Self Assessment Guide Line 8 Hourly overhead multiplier Overhead is made up of the expenses that don t get used up by the hour or by the job like tooling and coolant It is also those expenses needed to run the business that are not directly part of working on a knee mill This includes things like rent utilities telephones managers finance charges invoicing etc Many shops have a burden rate that is applied to the labor rate Use this number here if you know it If you don t have an overhead already figured use this rule of thumb A low overhead small company would be 25 of labor higher overhead big company can be 100 or more Note Many shops put the cost of equipment in the overhead rate This can be counter productive because it leads shops to regard equipment as an expense to be contro
19. ame value as the time being saved Use the number on line 20 in order to show the value for the new higher cost of owning a ProtoTRAK EMX Example 30 Enter one of the estimates from lines 25 28 or the average from line 29 Enter this as a decimal e g 50 62 50 31 Multiply line 20 by line 30 This is the value of the time 29 48 x 62 saved per hour 18 28 19 Southwestern Industries Inc ProtoTRAK EMX Self Assessment Guide The Value of the Time Savings Over the Life of the ProtoTRAK EMX We calculate the value of timesavings over the life of the ProtoT RAK EMX because it makes a good comparison with the lump of money that you have to pay In more sophisticated methods of financial analysis the kind that put you to sleep the money that is expected in the future is discounted or reduced to reflect the time value of money that is the fact that a dollar you have today is worth more than a dollar you expect in the future We don t attempt to do this because the thing we are valuing time is just as likely to go up in value as the value of money will increase In other words the cost of labor will rise as fast or faster than the cost of money This expectation offsets the time value of the money Line 32 Enter the number of hours per year you estimate using the milling machine with a DRO In previous sections we had you calculate costs on an hourly basis without regard to how much you use
20. crease in cost is calculated by the formula new cost old cost old cost This will show how much more the ProtoT RAK EMX costs and really puts it into perspective Most people are amazed to see how little it increases overall costs to buy the ProtoTRAK EMX That is because most of the costs of running a milling machine are not in the equipment they are in the labor and overhead Example In this example the cost of running a knee mill has gone up by 2 as a result of purchasing a ProtoTRAK EMX 21 Subtract line 10 from line 20 for the increase in hourly cost See 28 81 0 67 22 Divide line 21 by line 10 for the percentage increase in 0 67 28 81 hourly cost 020r2 If the productivity can be raised by just 2 the investment is a break even 12 Southwestern Industries Inc ProtoTRAK EMX Self Assessment Guide Line 23 Subtract line 1 from line 17 for the additional costs of buying a ProtoTRAK EMX The cost of the mill you are using now needs to be deducted from the cost of the mill with the ProtoTRAK EMX so that you can isolate the additional costs for the purchase of the ProtoTRAK EMX Line 24 Multiply line 7 by 2000 x 7 for the labor cost of the machinist over the life of the ProtoTRAK EMX To go from hourly cost to the cost of the labor over the life of the ProtoTRAK EMX we multiply times the number of hours per year 2000 and by the number of years 7 This is a conservative life
21. ease in hourly 12 cost 23 Subtract line 1 from line 17 for the additional costs for buying a 13 ProtoTRAK EMX 2 Southwestern Industries Inc ProtoTRAK EMX Self Assessment Guide 24 Multiply line 7 by 2000 x 7 for the labor cost of the machinist 13 over the life of the ProtoTRAK EMX Time Savings Assessment see Page 13 Unlike costs which are based on relatively firm numbers the time savings must be estimated Use one or all three of the methods below Method 1 Guess kaea The bane Here for Help 25 Enter a guess for the amount of time saved over manual 13 machining Method 2 Comparison Parts 26 Comparison Part 1 time savings 14 27 Comparison Part 2 time savings 15 Method 3 Grading Work for Potential Savings 28 Time savings from grading worksheet 16 18 Optional 29 Average the numbers on lines 25 through 28 19 The Value of the Time Savings Hourly see Page 19 30 Enter one of the estimates from lines 25 28 or the 19 average from line 29 Enter this as a decimal e g 50 50 31 Multiply line 20 by line 30 This is the value of the time 19 saved per hour The Value of the Time Savings Over the Life of the ProtoTRAK EMX see Page 20 32 Enter the number of hours per year you estimate using the 20 24 milling machine with a DRO 33 M
22. ion cost 112 50 Line 15 Training cost The ProtoTRAK EMX comes with a self training tutorial that most machinists can complete in two hours In most parts of the North America and Europe training is available from SWI or an authorized distributor for a small price In addition to the formal training time it will take the operator a few days of slightly slower operation in order to get accustomed to working with a Proto TRAK EMX In case the ProtoTRAK EMX will be run by one of the tens of thousands of people who already know how to run a ProtoTRAK or TRAK CNG the training cost will be very near 0 00 9 Southwestern Industries Inc ProtoTRAK EMX Self Assessment Guide Training Cost Worksheet Option 1 Self Trained Hours estimated initial training use 3 to guess Plus 3 days at 75 productivity costs 25 of the day 3x8x 25 6 Equals hours spent on training Times the hourly labor cost from line 7 X Equals the training cost Option 2 Purchased Training Hours in initial training probably 2 1 day at 75 productivity 1x8x 25 2 Equals hours spent on training Times the hourly labor cost from line 7 X Plus the quoted training fee Equals the training cost Example The self training guide is used by a manual machinist to learn the ProtoTRAK EMX on his own Option 1
23. life of the ProtoTRAK EMX 133 078 40 The numbers in the above examples may seem almost unbelievable but consider this Over the course of the next seven years a skilled person in your shop is going to cost you something like 393 750 00 Find a way to save just 2 of his time and you have paid for a ProtoTRAK EMX If he goes anywhere near a milling machine on a regular basis saving 2 of his overall time when you have a ProtoT RAK EMX is pretty well assured Calculated as hourly wage 18 hour social security and benefits 25 overhead 25 times 2000 hours per year times 7 years 21 Southwestern Industries Inc ProtoTRAK EMX Self Assessment Guide Time Savings and Earned Shop Rate If you are in the job shop business you may want to estimate the effect the ProtoT RAK EMX will have on the profitability of each billed hour Many shops have a billing rate that they apply when estimating a job When the job is completed an earned shop rate is calculated This section will show the increase in profitability per hour billed and compare it to the increase in cost Example 35 Enter your hourly shop rate 60 00 36 Divide line 35 by 1 line 30 for the earned shop 60 00 1 62 rate at the estimated time savings 157 89 37 Subtract line 35 from line 36 This is the additional 97 89 profit per billed hour from owning a ProtoTRAK EMX Payback Calculations Another way to
24. lled like the rent or electricity Because equipment has more effect on productivity than most other factors in overhead it deserves the special attention we are giving it in this self assessment Line 9 Multiply line 7 by line 8 to get the hourly overhead cost The rationale behind applying the overhead or burden rate to the labor rate is that more expensive people have higher output and use up more stuff It is a good assumption Example To be conservative we will use the labor rate calculated above to figure overhead in a small job shop 8 Hourly overhead multiplier 25 9 Multiply line 7 by line 8 to get the hourly overhead cost 22 50 fare Line 10 The total hourly cost for running a mill in your shop now Example Now that each of the parts is calculated we can use our examples above to figure out the entire cost of running a knee mill per hour 10 Add lines 3 7 and 9 This is the total hourly cost for OGS i AAE i aye 5 63 28 81 running a mill in your shop now On a yearly basis this is a cost of 2000 hours year x 28 81 hour 57 620 00 Only about 1360 00 of that came from the cost of the equipment The majority of the cost was from labor and overhead 7 Southwestern Industries Inc ProtoTRAK EMX Self Assessment Guide Cost of Owning a ProtoTRAK EMX Line 11 Purchase price of the ProtoTRAK EMX retrofit or complete machine You may purchase a ProtoT RAK EM
25. look at an investment is to calculate how long it will take to get your money back Line 38 Divide line 23 by line 31 for the number of hours to recover the lifetime cost of the ProtoTRAK EMX We divide the total additional cost for the ProtoTRAK EMX on line 23 by the value for the time savings per hour This gives us the number of hours that the mill must be used to get back the investment on the ProtoTRAK EMX Once the ProtoTRAK EMX is used for this number of hours the rest of the time the ProtoT RAK EMX saves is pure gain Line 39 Divide line 38 by line 32 for the number of years required to pay for the lifetime cost of the ProtoTRAK EMX The number of hours is calculated in terms of years to give you an idea of the amount of time that has to go by before the ProtoTRAK EMX is paid for Line 40 Divide line 23 by line 37 for the number of billed hours at your shop rate required to pay the lifetime cost of the ProtoTRAK EMX If you are a job shop or use shop rates to track costs this will give you an idea of how much work you have to get for the machine in order to break even on the lifetime costs of the ProtoTRAK EMX 22 Southwestern Industries Inc ProtoTRAK EMX Self Assessment Guide Example 38 Divide line 23 by line 31 for the number of working hours 9360 18 28 required to pay for the lifetime cost of the ProtoTRAK EMX 512 hours 39 Divide line 38 by line 32 for the number of years required to
26. mpared to labor The ProtoTRAK EMX has brought real simplicity to owning and running a CNC These factors add up to one thing if your shop is running milling machines with DRO s this is probably a mistake This self assessment guide helps you to cut through our product claims and see for yourself whether a ProtoT RAK EMX would make a good investment for your shop Although written according to generally accepted accounting principles you won t have to take it to your accountant for help There are no tricks no spins just facts and logic Go ahead and show it to your accountant when you are finished He ll approve of the methods and he ll believe the results How to Use This Guide At first glance the guide seems complicated but most of the pages are for reference Simply use the worksheet following this page and fill in the lines with your numbers If you need help there are explanations and examples provided in the pages referenced for each line Unless you are using this guide to prepare a formal presentation you should be able to work through it in 20 minutes or so ae The 1970 s DRO idea is just not good enough any more Do the numbers and see for yourself Self Assessment Worksheet 1 Southwestern Industries Inc ProtoTRAK EMX Self Assessment Guide Hourly Costs of Running a Mill in Your Shop Now see Page 5 En
27. n Drilling 45 X 35 _ 1575 Squaring Blocks 45 X 0 Cutting Slots 10 X 40 4 100 Total 19 75 Even for this simple case having a Proto TRAK EMX saves almost 20 of the operator s time in front of this mill Example A knee mill that is used in prototyping and engineering support A lot of variety in the parts and contouring is not uncommon Frequent rework of prototype parts or minor changes to drawings for remake of parts is required Type of operation time used X estimated total time saved in this time savings operation Drilling 15 X 15 2 25 Bolt Hole Drilling 10 X 40 4 0 Squaring Blocks 15 X 0 0 Straight Milling 25 X 35 8 75 Blending Radii 25 X 50 12 5 Arc Milling 10 X 75 M5 100 Total 35 17 Southwestern Industries Inc ProtoTRAK EMX Self Assessment Guide Example A tool and die support machine used exclusively for drilling holes and milling out pockets with blended radii Type of operation time used X estimated total time in this time savings saved operation drilling 60 X 20 18 Pocket milling 40 X 80 32 100 Total 50 Grading your work for potential savings Worksheet Enter the total in line 28 Type of time used X estimated total time saved Operation in this time savings for this operation operation for this operation Drilling Single
28. pment is almost laughable compared to the cost of labor If you want to save money you are much better off doing what you can to lower the big number Reducing an expense that is already small is hard reducing one that is large has more potential That is what an investment in the ProtoT RAK EMX is all about making the big number smaller per part machined 23 Southwestern Industries Inc ProtoTRAK EMX Self Assessment Guide
29. ssessment Guide Line 3 Divide line 2 by 2000 to get the hourly cost of the mill We assume that there are 2000 working hours per year 50 weeks x 40 hours week If you do not use the mill 2000 hours a year this is still a good number to apply to the hours that you do use it That is because v If you use the mill more you will wear it out faster but it will still cost the same per hour You ve simply compressed the machine years into a smaller number of calendar years v Ifyou use it less than full time the mill will either last you longer or you will be able to sell it for more because it is less worn The utilization does matter of course We will account for that when we are calculating the value of the time savings in line 32 Example If you bought a new mill with a DRO and power feed for 9 500 the equipment cost per hour would be Hourly cost of the mill 1 Knee mill purchase price Include freight dedicated vice DRO 9500 00 and power feed but not consumable tooling 2 Divide line 1 by 7 years to get the cost per year 3 Divide line 2 by 2000 to get the hourly cost of the mill 0 68 1357 14 Line 4 Hourly wage Pick an hourly wage for a person who runs a milling machine in your shop If more than one person shares the mill use an average wage Line 5 Benefits and Social Security tax multiplier The labor cost includes benefits and social security taxes Benefits include bre
30. ter Your Refer to Line I Answer This Page ine Hourly cost of the mill peli ir 1 Knee mill purchase price Include freight dedicated vice DRO 5 6 and power feed but not consumable tooling 2 Divide line 1 by 7 years to get the cost per year 5 6 3 Divide line 2 by 2000 hours per year to get the hourly cost of the 6 mill Hourly labor cost 4 Hourly wage 6 5 Benefits and social security taxes multiplier 6 6 Multiply line 4 times line 5 6 7 Add lines 4 and 6 to get hourly labor cost 6 Hourly overhead cost 8 Hourly overhead multiplier 7 9 Multiply line 7 by line 8 to get the hourly overhead cost 7 10 Add lines 3 7 and 9 This is the total hourly cost for running 7 a mill in your shop now Cost of Owning a ProtoTRAK EMX see Page 8 11 Purchase price of the ProtoTRAK EMX retrofit or complete 8 machine 12 If retrofit enter the knee mill cost from line 1 8 13 Shipping cost 9 14 Installation cost 9 15 Training cost 9 10 16 Lifetime maintenance costs 10 11 17 Add lines 11 12 13 14 15 and 16 for the cost of owning a 11 ProtoTRAK EMX 18 Divide line 17 by 7 years to get cost per year 12 19 Divide line 18 by 2000 hours per year to get cost per hour 12 20 Add lines 7 9 and 19 This is the total hourly cost for 12 running a mill with a ProtoTRAK EMX 21 Subtract line 10 from line 20 for the increase in hourly cost 12 22 Divide line 21 by line 10 for the percentage incr
31. tries 11 Purchase price of the Proto TRAK EMX retrofit or complete 16 995 00 machine 12 If retrofit enter the knee mill cost from line 1 0 00 8 Southwestern Industries Inc ProtoTRAK EMX Self Assessment Guide Line 13 Shipping cost In the US shipping via truck line will be Retrofit Kit Machine 200 00 800 00 275 00 1300 00 300 00 1500 00 West Coast USA Middle USA East Coast USA For Canada Mexico and Europe get a quote from the local authorized distributor The retrofit Proto TRAK EMX may also be shipped via UPS for quicker delivery Line 14 Installation cost The ProtoTRAK EMX comes with a self installation manual A skilled machinist could install a ProtoT RAK EMX in about 4 to 6 hours in most cases In most parts of North America and Europe installation is available from SWI or an authorized distributor for a small price Installation Charges Worksheet Option 1 Self Installation Number of hours estimated use 5 to guess Times the hourly labor cost from line 7 X Self Installation cost Option 2 Paid Installation from SWI or Authorized Distributor Quoted Installation Charge Example The ProtoTRAK EMX is installed by a maintenance man in the shop who has some experience working on knee mills Option 1 Self installation Number of hours required 5 Times the hourly labor cost from line 7 22 50 Self Installat
32. ultiply line 32 by 7 years for the number of hours over the 21 life of the equipment 34 Multiply line 33 by line 31 for the value of the time savings 21 over the life of the Proto TRAK EMX Time Savings and Earned Shop Rate see Page 22 35 Enter your hourly shop rate 22 36 Divide line 35 by 1 line 30 for the earned shop rate at 22 the estimated time savings 37 Subtract line 35 from line 36 This is the additional profit 29 per billed hour from owning a Proto TRAK EMX 3 Southwestern Industries Inc ProtoTRAK EMX Self Assessment Guide Payback Calculations see Page 22 38 Divide line 23 by line 31 for the number of working hours 22 23 required to pay for the lifetime cost of the Proto TRAK EMX 39 Divide line 38 by line 32 for the number of years required to 22 23 pay for the lifetime cost of the Proto TRAK EMX 40 Divide line 23 by line 37 for the number of billed hours at 22 23 your shop rate required to pay the lifetime cost of the ProtoTRAK EMX Comparisons see Page 23 1 Total hourly costs of running a mill now and with a ProtoTRAK EMX This is the hourly cost of running a mill in Line 10 your shop now This is the hourly cost of running a mill with Line 20 a ProtoTRAK EMX 2 Costs of owning versus value of time saved This is the additional cost of owning a Line 23 ProtoTRAK EMX

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