Cost Analysis

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The cost analysis was done based on a 7ft 4ft vessel, with approx. 55 linear meters of weld, time spent and consumables would slightly differ from company to company. The costings for time and labour are based on the Engineer/Operator earning £12 per hour.

Cost Analysis.

Method – Pickling Paste.

Application                                                  Time                                                  Cost/Labour

Move vessel out side factory                    10                                                      £2

Apply paste                                                   15                                                       £3

Wait for paste to activate                          30                                                      £0                      Assuming operator continues working

Hose off vessel                                             40                                                     £8

Re  work – Tidelines/Acid                          30                                                     £6

Dress ready for shipping                            10                                                      £2

Operational Total                                         2 hrs 15 minutes                            £21

2kg cleans approx. 110 linear meters at a cost of £48 for 2kg tub.

Cost of paste used on vessel                                                                                 £24

Abrasive pads used on vessel                                                                                £3

Gloves                                                                                                                         £3

Total job cost and time x1 vessel                 2hrs 15mins                                   £51

  • Vessel is not passivated

 

 

Method – Electro Cleaning WELDBrush 500
Application                                                      Time                                                 Cost
Clean and passivate vessel                            50                                                    £10
Spray and wipe vessel                                    10                                                     £2
Operational Total                                            1 hour                                              £12
2kg Cleans approx. 150 linear meters at a cost of £50 for 2kg tub.
1 carbon fibre brush will last approx. 60 hours costing £15.
Cost of solution used on vessel                                                                             £17
Cost of carbon fibre brush                                                                                      £0.25p
Total job cost and time x1 vessel                  1 hour                                              £29.25p
  • Vessel is passivated.
The following annual cost analysis has been based on 6 vessels are being manufactured and shipped a week, based over a period of 52 weeks the total delivered vessels are 312 per annum.
                                                                        Time per Week                      Cost per Week
Pickling Paste                                                   13hrs 30 mins                                £306
WELDBrush                                                      6 hrs                                                £175.50
                                                                         Time per Month                    Cost per Month
Pickling Paste                                                    58hrs                                               £1,326
WELDBrush                                                      26hrs                                               £760
                                                                         Time per Year                        Cost per Year
Pickling Paste                                                    692hrs                                              £15,912
WELDBrush                                                       312hrs                                              £9,126
Conclusion:
By changing current finishing method of pickling paste to using the WELDBrush, not only will the business be saving £6,786 per annum on labour and consumable cost, but it will be gaining over 380 additional working hours, looking at a standard 8 hour working day this will give back an additional 47.5 working day per year.
Average time to complete vessel – 7 hours
Cost per vessel – £8695
Time back from above analysis – 47.5 hours
Potential additional vessels to sell – 7
Additional profit – £60,865

Cost saving – £6,786
Total saving for year 1 – £67,651
The vessel is also passivated to prevent any rust or corrosion, to passivate this externally this would incur further costing that have not been added to the analysis.
Health and safety benefits would be for Engineer/Operator, to the environment and long term the company, washing harmful and corrosive acid and metal particles down the drain into the surrounding environment is an illegal act and carries heavy fines for any company caught doing such.