Economical Analysis and Retrofitting of Ernault Make Turning Centre

INTRODUCTION

Today we are moving towards an Industry where the Demand of the Machined Products is very High and the manufacturers are looking for various solutions to increase the Productivity and quality of the machined products. Hence they are moving towards CNC Machines to meet their needs. A Majority of SME’s, MSME’s including OEM’s uses CNC Machines to meet their machining demands. Over time the CNC Control of the machines turns old and their electronic components starts weakening. At this time the users resorts to repairing of the faulty or weaken modules and at some moment of time the spare parts either becomes obsolete or very rare to find surging the cost of spares parts. This dents the user pockets and their production plan.

With this scenario, the user is left with two options. The first option is to purchase a new CNC machine that has a substantial value. The second option is to Upgrade the OLD Model CNC system with New Generation CNC Systems. Upgrading to a new CNC System in Old CNC Machine is subjective to the mechanical condition of the CNC Machine, if the condition is good then retrofitting/upgrading of New CNC system is a far better cost-effective solution than purchasing a new CNC machine.

In this case, as well customer had an old ERNAULT Make CNC Turning Centre with FANUC 0T Model CNC System. Day by day the health of the old CNC control started deteriorating and at one moment the CNC system failed. 

The user approached us for a solution we provided a cost-effective solution as mentioned below:

EARLIER CONDITION

No	Specification	Cost in INR	Remarks
1	Turning Machine Running Cost/HR	240	Considering Cutting Material is MS
2	Old CNC Repair Cost /Day	167	Considering Average Maintenance Cost 5000/ Month
3	Not Meeting Commitment to Customers	Invaluable

With the 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. 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: 240*8 =  INR 1920/-
2. CNC Machine repairing Cost: INR 167/-
3. TOTAL: INR 2087/- 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CNC Machine Repairing Cost can hike up if the CNC System used is obsolete in Nature and spare parts availability is limited.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 didn’t found the Spare parts for the past three months and runs the machine for 16 hours, so our user loss was as mentioned below

1. Running Cost/ Minimum Earning of the machine: 240*16 = INR 3840/- Per Day
2. CNC Machine repairing Cost: INR 167/- Per Day
3. TOTAL Per day loss: INR 4007/- Per Day
4. TOTAL LOSS FOR 90 DAYS: 4007*90 = INR 360,630/- 

AFTER RETROFITTING CONDITION

No	Specification	Cost in INR	Remarks
1	Turning Machine Running Cost/HR	240	Considering Cutting Material is MS
2	NEW CNC Repair Cost /Day	0	Warranty for 24 Months
3	Commitment Met	Invaluable

1. Running Cost/Minimum Earning of the machine: 240*16 = INR 3840/- Per day
2. CNC Machine Repairing Cost: INR 0/- Per day
3. Total Earning Per day: 3840+167 = INR 4007/- Per Day
4. Total Earning for 30 Days: INR 120,210/-
5. Retrofitting Cost: INR 395,000/-
6. Return of Investment (ROI)in Days: 395000/4007 = 99 Days
7. CNC USED: DELTA NC200

As you can analyze after an investment of INR 395,000/-, the machine started working 16 hours a day yielding INR 4007/- per day. And as the new CNC system comes with a warranty of 24 Months so the repair cost turns 0 for 24 months saving INR 120,000/- (167*720 days) in total. The investment will return within 100 days of production and will start yielding profit.

In addition to this, the latest CNC comes with a load of features that decreases the machining time and increase productivity in turn gaining more margins than 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 the machine and reducing breakdowns.

Please find the pictures below for your ready reference.

Before Retrofitting Condition

After Retrofitting Condition