© Weld Tooling Corp.


ECONOMIC ANALYSIS OF MECHANIZED SEMI-AUTOMATIC WELDING vs. MANUAL STICK ELECTRODE WELDING & MANUAL SEMI-AUTOMATIC WELDING
The following table shows that even with a cost factor of 7 to 1 for the mechanized semi-automatic versus manual stick welding, and with a consumable costing twice as much, the pay-back on the mechanized semi-automatic is less than six months. This analysis points to the urgent need to change from manual to fully mechanized processes. mechanized welding should be a prime consideration in the deisgn phase. At, first, it would appear that the initial investment is high, but in fact,this initial investment results in maximum efficiency and savings of almost 60%.
COST ANALYSIS
OPERATING EXPENSES
MANUAL STICK
MANUAL SEMI-AUTOMATIC
MECHANIZED SEMI-AUTOMATIC
1 Purchase Price
$1,694.92
$6,779.66
$11,864.41
2 Accessories
- - -
1,016.95
1,355.93
3 Total Investment (1+2)
1,694.92
7,769.61
13,220.34
4 Working Life of Equipment
10 years
10 years
5 years
5 Yearly Operating Hours
1000 hours
1000 hours
1000 hours
6 Labor & Overhead
20.40
20.40
20.40
7 Calculated Depreciation per Year
169.49
1,559.32
2,644.07
8 Calculated Interest rates per year
67.80/yr.
311.86/yr.
528.81/yr.
9 Yearly investment expenses (7+8)
237.29/yr.
1,871.19/yr.
3,172.88/yr.
10 Maintenance
67.80/yr.
423.73/yr.
423.70/yr.
11 Spare Parts
33.90/yr.
423.73/yr.
423.73/yr.
12 Machine Costs per Hour
(9+10+11): (5)
.34/hr.
2.72/hr.
4.02/hr.
13 Operating Time for 650 kg (1433.25 Lbs.) Deposited Metal
1625 hours
1083 hours
464 hours
14 Manufacturing Costs
(6x13) + (12x13)
33,601.70
24,971.53
11,302.71
15 Costs Consumables for 650 kg Deposited Metal
1,423.20
2,864.41
2,864.41
16 Total Costs (14+15)
35,033,90
27,835.93
14,167.12
17 Total Savings Compared to Manual Stick
- - -
7,197.97
$20,866.78
18 Savings (%)
- - -
20.5%
59.5%