Explain the capital cost for equipment

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Reference no: EM131102512

Due to an increase in demand from customers for bespoke cylinder markings / instructions on our fire extinguishers e.g. foreign language text, custom layouts, etc. we need to develop an alternative solution / process for applying them in smaller volume quantities e.g. batches of 50 pieces instead of the normal 1000 to 1500 pieces.

2 Current Volume Production Process

Volume product markings are applied by a silk screen printing process, using an Ultra Violet (UV) cured white ink: -

1. Painted, empty cylinders are loaded horizontally onto the printing machine (photo 1); they sit on a wheeled carriage (photo 2) that allows them to rotate freely,

2. On operating the machine, the carriage is raised up to meet the silk screen and the screen is wiped horizontally across the cylinder, rotating the cylinder as it does so (photo 3),

3. Printed cylinders are then placed into a UV drying machine which activates / cures the ink, fixing the image.

Note the following information: -

The average cost for a single silk screen is £75.00 (screens last for 5000 prints)·

The average cost of ink· & consumables is circa. £0.05 / print

Current cycle time to print a cylinder is 60 seconds (labour cost £30.00 / hr)·

All filled extinguishers' are fitted with a coloured header label during packing following criteria in any analysis: -

Capital cost for equipment,

Material costs,

Process time,

Quality / durability of image,

Anything else that you think applies

Complexity of processing.

Reference no: EM131102512

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