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Factory Production/cost analysis
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COST:
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Number of heads
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1 |
2 |
4 |
6 |
12 |
15 |
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| Labor $6.50/hr. x 40 |
$260.00 |
$260.00 |
$260.00 |
$260.00 |
$260.00 |
$260.00 |
| Overhead 150% Labor |
$390.00 |
$390.00 |
$390.00 |
$390.00 |
$390.00 |
$390.00 |
| Average used machine cost |
$16,000. |
$25,000. |
$35,000. |
$45,000. |
$60,000. |
$70,000. |
| Monthly pymt. 60 months @ 12% |
$355.91 |
$556.11 |
$778.55 |
$1,001.00 |
$1,334.67 |
$1,557.11 |
| Weekly pymt. |
$82.13 |
$128.34 |
$179.67 |
$231.00 |
$308.00 |
$359.34 |
| One shift utilization 8 hours/day |
$732.13 |
$778.34 |
$829.67 |
$881.00 |
$958.00 |
$1,009.34 |
| Two shift utilization 16 hours/day |
$992.13 |
$1,038.34 |
$1,179.34 |
$1,141.00 |
$1,218.00 |
$1,269.34 |
| (Add 125% of labor =$325) |
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| Production: |
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| 6,000 stitch pattern (3-color) |
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| 700 stitches per minute |
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| Running =6000/700 spm |
8.6 min |
8.6 min |
8.6 min |
8.6 min |
8.6 min |
8.6 min |
| Framing |
.5 min |
1.0 min |
1.5 min |
2.0 min |
2.0 min |
2.0 min |
| Color change |
.5 min |
.5 min |
.5 min |
.5 min |
.5 min |
.5 min |
| Total cycle time |
9.6 min |
10.1 min |
10.6 min |
11.1 min |
11.1 min |
11.1 min |
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| Cycle/shift=420min/shift |
43.75 cyc |
41.58 cyc |
39.62 cyc |
37.84 cyc |
37.84 cyc |
37.84 cyc |
| by min/cycle |
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| Dozen/shift |
3.65 dz |
6.93 dz |
13.2 dz |
18.92 dz |
37.84 dz |
47.3 dz |
| Dozen/week(one shift) |
18.23 dz |
34.65 dz |
66 dz |
94.59 dz |
189.19 dz |
236.49 dz |
| Dozen/week(one shift) |
36.46 dz |
69.31 dz |
132 dz |
189.19 dz |
378.38 dz |
472.97 dz |
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| Production Cost/doz |
$40.16 |
$22.46 |
$12.57 |
$9.31 |
$5.06 |
$4.26 |
| Plus .27/doz for backing |
$0.27 |
$0.27 |
$0.27 |
$0.27 |
$0.27 |
$0.27 |
| Plus .18/doz for thread |
$0.18 |
$0.18 |
$0.18 |
$0.18 |
$0.18 |
$0.18 |
| Total cost/doz |
$40.61 |
$22.93 |
$13.02 |
$9.76 |
$5.51 |
$4.71 |
| Cost each (doz cost/12) |
$3.38 |
$1.91 |
$1.09 |
$0.81 |
$0.46 |
$0.39 |
| Cost/1000 stitches(cost each/6) |
$0.56 |
$0.32 |
$0.18 |
$0.14 |
$0.08 |
$0.07 |
| Cost/1000 stitches(two shift) |
$0.38 |
$0.21 |
$0.13 |
$0.09 |
$0.05 |
$0.04 |
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This pro-forma is intended to illustrate the cost
comparison of heads
running the same pattern.
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