Economical Analysis and Retrofitting of Drop & Rein Boring Machine (6 Axis)

INTRODUCTION

This Case has been very important to the user as well as for us as it was bound under time deadline and we were supposed to deliver the machine within 4 weeks from date of handover. This is a Six Axis Machine with Travel of X Axis as 10 Mtrs. Y Axis , Z Axis, W Axis (Spindle Ram), B Axis (Rotary Axis), V Axis (Parallel to Z Axis Carrying Rotary Table)

It is very amazing to see how CNC machines are being used in the manufacturing of the  things needed in minute day to day necessary items such as needles to the advance aerospace, satellites and much more. In this case we will talk about CNC Machine used for machining of Gear Boxes of Iron Rod Rolling Mills used to manufacture Iron Rods used in construction of Homes, Buildings, Flyovers, Highways etc.

In this case customer had a Boring Machine 6 Axis for machining of gear boxes which was earlier installed with a old model of Siemens CNC Control with DC Drives and DC Motors of Indramat which has been obsolete in Nature now.

User approached us for a solution in a deadline of Months, we provided a cost effective solution as mentioned below:

Earlier Condition

No	Specification	Cost in INR	Remarks
1	CNC Boring Machine Running Cost/HR	850
2	Old CNC Repair Cost /Day	666	Considering Average Maintenance Cost 20000/ Month
3	Line Production Demands	NOT MET

With above table we can analyze that the in breakdown the user suffers majorly three types of losses two are scalable but third loss can not be valued. Line Production loss can be defined as the loss of other machines production due to non supply of the input material, in this case if the CNC Boring will not manufacture its component the other machines in line where the input is the output of CNC Boring will not be able to work efficiently. In figures if user machinery goes under breakdown the losses per day will be (Considering the Shift of 8 Hours Per day)

1. Running Cost/ Minimum earning of the machine: 850*8 =  INR 6800/- Per Day
2. CNC Machine repairing Cost: INR 666/- Per Day
3. TOTAL: INR 7466/- PER DAY

CNC Machine Repairing Cost can hike up if the CNC System used is obsolete in Nature and spare parts availability is limited.

Our User CNC Panel was burnt due to some fault in Bulky DC Drives, and was under maintenance for almost 2 Months, One Month Prior starting of work and One Month in which the work has been done. User runs the machine for 22 Hours in 3 Shifts.

1. Running Cost/ Minimum Earning of the machine: 850*22 = INR 18,700/- Per Day
2. CNC Machine repairing Cost: INR 666/- Per Day
3. TOTAL Per day loss: INR 19,366/- Per Day
4. TOTAL LOSS FOR 60 DAYS: 19366*60 = INR 1,161,960/- 

AFTER RETROFITTING CONDITION

No	Specification	Cost in INR	Remarks
1	Turning Machine Running Cost/HR	850
2	NEW CNC Repair Cost /Day	0	Warranty for 24 Months
3	Line Production Demands	MET

1. Running Cost/Minimum Earning of the machine: 850*22 = INR 18700/- Per day
2. CNC Machine Repairing Cost: INR 0/- Per day
3. Total Earning Per day(Earning+ Repair Cost-Saving): 18700+666= INR 19366 /- Per Day
4. Total Earning for 30 Days: INR 580,980/-
5. Retrofitting Cost: INR 2,180,000/-
6. Return of Investment (ROI)in Days: 2180000/18700 = 117 Days
7. CNC USED: FANUC FS0i MF

As you can analyze after investment of INR 2,180,000/-, the machine started working 22 hours a day yielding INR 18700/- per day. And as the new CNC system comes with the warranty of 24 Months so the repair cost turns 0 for 24 months saving INR 479,520/- (666*720 days) in total. The investment will return within 120 days of production and will start yielding profit.

In addition to this the latest CNC comes with a load of features which decreases the machining time and increase the productivity in turn gaining more margins as earlier.

In addition to this the overall efficiency of the machine increase as the downtime is reduced hence improving productivity. The Panel & Field Wiring is changed to increase the electrical life of machine and reducing the breakdowns.

Please find the pictures below for your ready reference.

AFTER RETROFITTING CONDITION