Intercom Polifemo Cost Benefit Analysis

Details	UOM	Polifemo	Manual Spray	Hand Operation solvent glue + brush
Product – Hand bags
Average gluing length per component	mm	450	450	450
Average number of components per handbag	Nos	30	30	30
Total gluing length per handbag	mm	13.500	13.500	13.500
Gluing speed (distance per second)	mm/sec	250	75	15
Working time per day (reducing 15% slack)	mins	510	510	510
Required production per day	bags	600	1.800	9.000
Gluing time required per day	mins	540	1.050	2.400
Manpower requirement	TM	2	4	18
Manpower average cost to company/per mounth	US$	180	150	120
Total manpower cost per month	US$	360	600	2.160
Total manpower cost per year	US$	4.320	7.200	25.920
Average glue required per 10 mm per component 450mm lenght	gr	0,5	1,0	4,0
Total glue required per day for 18000pcs	Kg	9,0	18,00	72,00
Waste	%	10	30	60
Total glue consumption per day	Kg	9,9	23,40	115,20
Glue cost per Kg	US$	6,25	6,25	2,50
Glue cost per year	US$	18.563	43.875	86.400
Cost of gluing operations / year	US$	22.883	51.075	112.320
Capital Cost
No. of Machines required	Nos.	2	4	18
Cost per machine	US$	75.000		15
Total cost of machines	US$	150.000		270
Depreciation	US$	30.000		54
Opportunity Cost of capital (10%)	US$	15.000		27
Power Consumption per year (1500 Watt)	KWh	8.100		–
Cost of power per year ($0.09 per KWh)	US$	729		–
Maintenance cost (Assumed at 3% incl. spares)	US$	4.500		8
Real Estate used (L x B = 3.5 M x 3.5 M)	SqM	24		22
Opportunity Cost of Real Estate ($M75/15000 SM)	US$	120.000		110.000
Total Capital Cost per year	US$	50.229		89