$10,000 must be analyzed, studied and approved by a team of employees, including frontline workers. Te teams have presented 163 projects, and more than 75% have been approved. A suc-
EVALUATING ROI
For each capital investment valued at more than $10,000, The Dotson Co. performs a detailed justification and payback analysis. Following are three examples of proposals the company’s $10,000 Project teams developed before purchasing equipment.
Sinto FBOX, Installed Costs: $1,055,577 Description
The Sinto FBOX 20X24 molding machine with aeration blow is a complete redesign of the FBO. An aeration chamber is used to fluidize the sand, providing better fill and the ability to pull deeper pockets. The molding machine is rated at 200 molds per hour with an estimated core setter rate of 138 molds per hour. Molds will be transferred from the molding machine to a Hunter turntable using a Sand Mold Systems accumulat- ing conveyor. The conveyor will be designed to continuously handle the maximum molding rate of 200 molds per hour. The turntable cycles at a maximum of 195 molds per hour.
Justification
The FBOX is the next generation of molding equipment in the line of Dotson’s current FBO. Replacing the unit will: • Reduce scrap primarily related to sand defects. • Reduce salvage grind via more defined parting lines. • Improve operator ergonomics through a larger opening and easier access to the pattern.
• Improve sand consistency by reducing mulled sand returning to the muller.
• Provide a reduction in core usage with the ability to pull deeper pockets and consistently pull 1:1 on the majority of the patterns in the plant.
• Increase available hours for production based on uptime and pattern change time.
• Improve ergonomics with better contact breakage points. • More fully utilize the current melt capacity and prepare for melt rate additions.
• Provide the ability to run jobs Dotson currently cannot. Payback
With an installed cost of $1,055,577 and an estimated annual savings of $656,162, the payback will be in 1.61 years.
Shock Watch, EquipManager, Installed Costs: $15,000
Description
This device will be added to forklifts throughout the plant. The object is to give operators more ownership of the equip- ment and to address possible safety concerns immediately. All pre-trip safety checks will be done by answering questions on a digital readout rather than on paper. Dotson will be able
26 | MODERN CASTING April 2012
to monitor forklift usage, operator training/certification and ultimately deal with forklift abuse.
Evaluation
Dotson performed a one-month trial of a similar product. The unit gave information regarding “hits” that could result in damaged equipment or product. After two weeks, two shifts reduced hits by 42% and 33%.
Justification
The goal is to reduce the amount of money spent on replac- ing equipment on forklifts, boxes/product, safety posts and more due to abuse. Doing the safety pre-trip check on digital readout will save on paperwork, time and missing documents.
Payback
If equipment is driven safely and correctly, a person can assume that some maintenance repair costs will be eliminated. The reduced damage on containers will make an immediate impact. Having all information on the company network will save time/money if documents become lost. Payback is difficult to calculate, as one injury accident prevented will pay for it. The trial period results indicate payback is likely. Therefore, the $10,000 Project team recommends purchase without a specific payback time period.
Hanel Vertical Storage, Installed Costs: $89,810 Description
The unit is a 19 x 8 x 9-ft. vertical storage unit. It will be located near the air compressor room in maintenance.
Evaluation
Multiple units, both new and used, were evaluated with two vendors. Site visits were made to observe the working units, and reference checks were made on the potential vendors.
Justification
Current maintenance parts storage is in a confined area without easy access. A vertical storage unit will improve storage organization and reduce travel time and part handling while saving space and allowing for a more efficient work flow.
Payback
Total annual savings are estimated to be $19,250. Payback is estimated at 4.6 years.
cessful $10,000 Project has two parts: • Employee involvement (see sidebar “Building Employee Involvement”).
• Equipment research and purchasing. In 2008, Dotson began the process
of acquiring and installing a new horizontal molding machine. Te $10,000 Project started with a trip overseas. Six plant employees flew to Japan to review automated pouring
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