| Oil on sheet steel is a way of life for a number of | | | | specific processes you do and which of those, if any, |
| sheet steel fabricators. It is just accepted and no | | | | represent bottlenecks . |
| one thinks about the price tag because there are | | | | This new tool computes oil cost penalties in four |
| few sensible choices. Then SCS came along. SCS has | | | | areas: |
| steel product producers thinking about the accurate | | | | - Sheet Metal expense when P&O is priced higher |
| price tag of oil on their sheet steel. | | | | than SCS, |
| Those who turned to SCS-processed steel inform us | | | | - Worker costs if oil produces non-value added work, |
| they are grateful to be losing HRPO's oil coating. | | | | - Perishables expenses necessary for things needed |
| They dislike how it gums up machines and causes | | | | for dealing with oil, |
| sheets stick together when destacking, in addition to | | | | - Capacity penalty if oil constrains output. |
| the additional cleaning and paint preparation it entails. | | | | So what are Estimator findings? One case was |
| However no one we talked to place a price on what | | | | analyzed for a fabricator of toolboxes. Using 16,750 |
| these headaches actually cost them. | | | | tons/year of HRPO with multiple fabrication |
| Why? Certainly, way too many parameters factor | | | | operations, Estimator determined an oil penalty of |
| into the picture to create a basic method. Instead, a | | | | $400,000 - nearly 2% of annual sales. |
| spreadsheet model capturing the essential aspects | | | | However more important than the penalty Estimator |
| discovered in the survey was devised. Oil Cost | | | | computes is the sensitivity to key factors and |
| Estimator - is now available to use. | | | | assumptions. Doing analyses by altering inputs or |
| This tool entails only just a few user -decided inputs. | | | | turning certain fabrication selections on/off can offer |
| These consist of the amount of HRPO tons , wage | | | | insight into where a penalty may be greatest and |
| rates, number of workforce and yearly product | | | | why. |
| shipments - all parameters that define the size of the | | | | You might want to try the Estimator to get a rough |
| fabrication operation. Additional inputs are which | | | | approximation of what that penalty may be. |