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PowerDown ROI Calculation

The IHI PowerDown feed system has been developed to take the guesswork out of operating mechanical presses which are integral to the rendering process.

During a recent survey of plants using a PowerDown Feeder one item was always mentioned above all others:

Increase in crax output by a minimum of 1500 pounds and hour.

All have a residual reduction of fat, some more than others
Crax were of a better quality.
Press motor load was reduced and constant.
Choke was not continually cycling.


ROI on PowerDown Feeder unit, based on extra throughput:
example:[ base line figures enclosed in ( ) ]

baseline variables specific to each plant operation
1500# = increased throughput with PowerDown Feeder
(12) = hours per day of operation
($145) = current market price of crax
(.35) = profit margin
 

(1500#s) per hour x (12 hours per day) = 18,000#s / 2000 x ($142 a ton)= $1,278.00 additional gross profit $s earned per day

$25,000 price of PowerDown Feeder / $1,278 = 19.56 days ROI on gross profit dollars

(1500#s) x (12 hour per day) = 18,000#s / 2000 x ($142 a ton) x (.35) profit margin = $477.70 additional net profit earned per day

$25,000 price of PowerDown Feeder / $477.70 = 52 days ROI on net profit dollars

If you are not using a PowerDown Feeder with your Press you are losing money.
 

Using the following formula, and substituting your figures for the baseline figures, will provide an indication of the benefits of a PowerDown Feeder:

example: [ baseline figures enclosed in ( ) ]

1500#s x (1600 hours) = 2,400,000 (beef/dead stock material)
1500#s material @ 41% fat and 59% (beef/dead stock material)
Fat 1500#s x (.41) x (1600) = 984,000#s @ (.08) = $78,720 x (.35) = $27,552
Crax 1500#s x (.59) x (1600) = 1,416,000 = 708 tons @ (142 per) = $100,536 x (.35) = $35,187 2000

*note (.11) of 1,888,000 = residual fat in Crax material

Extra profits that can be realized by using a PowerDown Feeder = $62,739 due to increased throughput per (1600) hours of operation

baseline variables specific to each plant operation

(1600) = avg. shaft life hours of operation
(.41) = % of pre-pressing fat (beef/dead stock)
(.59) = % of pre-pressed crax material (beef/dead stock)
(.11) = residual fat of crax
(.08) = current market price of fat
(.35) = net profit margin
($142.00) = market price of crax
1500# = increased throughput with PowerDown Feeder

 

Industrial Hardfacing, Inc. has been in business for over 35 years servicing the rendering, packing, vegetable oil, pet food, and recycling industries. We primarily rebuild and manufacture new wear-parts for mechanical pressing, grinding, shredding extruding and expanding equipment.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


218 East Main
Lamoni, IA 50140
800-247-7778 toll free
(641) 784-6921 phone
(641) 784-6923 fax

email
sales@industhardfacing.com