proposal for decommissioning and replacement of automated cutting device fernando cabrera shahid...

Proposal for Decommissioning Proposal for Decommissioning and Replacement of and Replacement of

Automated Cutting DeviceAutomated Cutting Device

Fernando Cabrera

Shahid Lakhwani

Fred Mazzeo

Leah Smith

Valerie Volpe

Introduction:Introduction:

Air Cruisers Company:Air Cruisers Company:– Manufacturer of:Manufacturer of:

Evacuation Equipment Evacuation Equipment for aerospace for aerospace industryindustry

– inflatable evacuation slidesinflatable evacuation slides– life jacketslife jackets– life raftslife rafts– helicopter floatshelicopter floats

Introduction: (Cont’d)Introduction: (Cont’d)

Cutting Devices:Cutting Devices:– Three Choices Three Choices (+ 1 old machine for reference)(+ 1 old machine for reference)

- Gerber GGT S-95

- CEI DCS-3500

- Gerber GGT S-3200

- Eastman Cutting Systems EC3X2

Cutting Devices: ICutting Devices: I

CEI Corporation: DCS-3500

Cutting Devices: IICutting Devices: II

Gerber S-3200

Cutting Devices: IIICutting Devices: III

Eastman EC3X2 Dual Gantry Cutting System

Initial Selection of Machines:Initial Selection of Machines:

Initial & Maintenance costs:Initial & Maintenance costs:– available foravailable for::

Gerber (current machine)Gerber (current machine) Gerber S-3200Gerber S-3200 CEI DCS-3500CEI DCS-3500

– not available fornot available for:: Eastman EC3X2Eastman EC3X2

Eastman EC3X2 not considered for purchase

Assumptions:Assumptions:

RepeatabilityRepeatability MARR MARR 20% 20% All machines have All machines have

EQUALEQUAL output output Pre-tax calculationsPre-tax calculations

Ten year life cycleTen year life cycle Do nothing NOT an Do nothing NOT an

optionoption Buyer’s perspectiveBuyer’s perspective

Cash Flow Diagrams: Cash Flow Diagrams: Current MachineCurrent Machine

PW(i%) = I + (X(P/F, i%, n))

n = year of cost

MARR = 20%

AW(i%) = PW(i%) (A/P, i%, N)

EOY$250,000

10

$100

0

$115

0

$125

0

$134

0

$150

0

$132

0

$800

0 $330

0

$500

0

$800

0

Gerber GGT-S95

Cash Flow Diagrams: Cash Flow Diagrams: Alternative IAlternative I

PW(i%) = I + (X(P/F, i%, n))

n = year of cost

MARR = 20%

AW(i%) = PW(i%) (A/P, i%, N)

CEI DCS-3500

$ 105,000

101

EOY

$139

00

$139

00

$139

00

$140

00

$140

00

$140

00

$140

00

$140

00

$140

00

$735

00

Cash Flow Diagrams: Cash Flow Diagrams: Alternative IIAlternative II

$ 144,000

$ 7,800.00/year

101

EOY

MARR = 20%

PW (i%) = I + X(P/A, i%, N)

I = Initial investmentX = Annuity valueN = time in Years

AW(i%) = PW(i%) (A/P, i%, N)

Gerber S-3200

Present Worth, Annual Worth: IPresent Worth, Annual Worth: I

Current Machine:Current Machine:– Gerber GGT-S95:Gerber GGT-S95:

PW (PW (10%10%) = - $ 266,240.00) = - $ 266,240.00 PW (PW (20%20%) = - $ 259,310.00) = - $ 259,310.00 PW (PW (30%30%) = - $ 255,900.00) = - $ 255,900.00 AW (AW (10%10%) = - $ 43,330.00) = - $ 43,330.00 AW (AW (20%20%) = - $ 61,850.00) = - $ 61,850.00 AW (AW (30%30%) = - $ 82,770.00) = - $ 82,770.00

Present Worth, Annual Worth: IIPresent Worth, Annual Worth: II

Alternative I:Alternative I:– CEI, DCS-3500:CEI, DCS-3500:


Present Worth, Annual Worth: IIIPresent Worth, Annual Worth: III

Alternative II:Alternative II:– Gerber S-3200:Gerber S-3200:


Summary:Summary:

-90000

-80000

-70000

-60000

-50000

-40000

-30000

-20000

-10000

0

0% 5% 10% 15% 20% 25% 30% 35%

Gerber GGT-S95 CEI, DSC-3500 Gerber S-3200

Annual Worth

-290000

-270000

-250000

-230000

-210000

-190000

-170000

-150000

0% 5% 10% 15% 20% 25% 30% 35%

Gerber GGT-S95 CEI, DSC-3500 Gerber S-3200

Present Worth

Therefore ChooseGerber S-3200

to Minimize Costs

QuestionsQuestions?

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proposal for decommissioning and replacement of automated cutting device fernando cabrera shahid...

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