Proposal for Decommissioning and Replacement of Automated Cutting

Proposal for Decommissioning and Replacement of Automated Cutting Device Fernando Cabrera Shahid Lakhwani Fred Mazzeo Valerie Volpe Leah Smith

Introduction: n Air Cruisers Company: – Manufacturer of: n Evacuation Equipment for aerospace industry – inflatable evacuation slides – life jackets – life rafts – helicopter floats

Introduction: (Cont’d) n Cutting Devices: – Three Choices (+ 1 old machine for reference) - Gerber GGT S-95 - CEI DCS-3500 - Gerber GGT S-3200 - Eastman Cutting Systems EC 3 X 2

Cutting Devices: I CEI Corporation: DCS-3500

Cutting Devices: II Gerber S-3200

Cutting Devices: III Eastman EC 3 X 2 Dual Gantry Cutting System

Initial Selection of Machines: n Initial & Maintenance costs: – available for: Gerber (current machine) n Gerber S-3200 n CEI DCS-3500 n – not available for: n Eastman EC 3 X 2 not considered for purchase

Assumptions: n n Repeatability MARR 20% All machines have EQUAL output Pre-tax calculations n n n Ten year life cycle Do nothing NOT an option Buyer’s perspective

Cash Flow Diagrams: Current Machine Gerber GGT-S 95 PW(i%) = I + (X(P/F, i%, n)) n = year of cost MARR = 20% AW(i%) = PW(i%) (A/P, i%, N)

Cash Flow Diagrams: Alternative I CEI DCS-3500 PW(i%) = I + (X(P/F, i%, n)) n = year of cost MARR = 20% AW(i%) = PW(i%) (A/P, i%, N)

Cash Flow Diagrams: Alternative II Gerber S-3200 PW (i%) = I + X(P/A, i%, N) I = Initial investment X = Annuity value N = time in Years MARR = 20% AW(i%) = PW(i%) (A/P, i%, N)

Present Worth, Annual Worth: I n Current Machine: – Gerber GGT-S 95: PW (10%) = - $ 266, 240. 00 n PW (20%) = - $ 259, 310. 00 n PW (30%) = - $ 255, 900. 00 n AW (10%) = - $ 43, 330. 00 n AW (20%) = - $ 61, 850. 00 n AW (30%) = - $ 82, 770. 00 n

Present Worth, Annual Worth: II n Alternative I: – CEI, DCS-3500: PW (10%) = - $ 244, 980. 00 n PW (20%) = - $ 213, 180. 00 n PW (30%) = - $ 193, 990. 00 n AW (10%) = - $ 39, 860. 00 n AW (20%) = - $ 50, 850. 00 n AW (30%) = - $ 62, 750. 00 n

Present Worth, Annual Worth: III n Alternative II: – Gerber S-3200: PW (10%) = - $ 191, 928. 00 n PW (20%) = - $ 176, 701. 00 n PW (30%) = - $ 168, 114. 00 n AW (10%) = - $ 31, 235. 00 n AW (20%) = - $ 42, 147. 00 n AW (30%) = - $ 54, 379. 00 n

Summary: Present Worth Annual Worth Therefore Choose Gerber S-3200 to Minimize Costs

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