Re: [foxboro] Can't figure out a way to justify it.

So after all these reply's, what is the "FINAL" answer???  Have I missed
something??  Example: Amoung a bunch of other stuff, AW's, AP's, etc, I have
8 WP30's, there is never any maintenance associated with them, it probably
costs $10,000 a piece (if lucky) to upgrade and then would have to maintain
them. (backups, hardrive failures etc).  Justification??

Brian Long
AKD

-----Original Message-----
From: foxboro-bounce@xxxxxxxxxxxxx
[mailto:foxboro-bounce@xxxxxxxxxxxxx]On Behalf Of David Johnson
Sent: Wednesday, January 12, 2005 3:18 PM
To: foxboro@xxxxxxxxxxxxx
Subject: Re: [foxboro] Can't figure out a way to justify it.


Alex,

I took some notes at the users conference from a presentation given by
Pierre Pacarar in the pulp and paper breakout session on this very topic. I
just looked over his powerpoint presentation on the users group CD.
(Another reason for all of you to attend next year.)  According to my
notes, in conjunction with the CD, he felt justification for upgrades were:

1) Manning Reductions
         This was far and away his number one justification
2) Process Modifications
         Primarily for NEW HIGH VALUE products that could yield big returns
3) Chemical Savings
         If automation can save something quantifiable and the $$ is right

----------
Items below this line could be used to strengthen the justification but
were not considered to be sufficient in and of themselves to get money for
an upgrade.

4) Production Increases
         Many plants are not currently running at full capacity
         Extra global capacity drives margins down
5) Quality Goals
         Would this assist in meeting a quality target that affects sales
6) Obsolete Equipment
         Least usable reason in terms of ROI.
         Find spares and keep it working, use Ebay etc.

There was a fair amount of talk after the presentation about the lack of
compassion (not quite the right word, but close enough) for the mill
workers, but as Pierre said, these are hard economic decisions and aren't
based on feelings.

Maybe if the North American industry picks up steam, as some economic
indicators predict, money won't be so tight.  But I think it's going to be
a long time before the bean counters are willing to let go of the purse
strings.  Also, a lot of executives felt like they got taken in the Y2K
hoopla, and equipment put in their plants for that reason had better last
until Y3K.  (Foxboro was in no way the worst in regards to Y2K, but you
guys played the game too.)

Regards,
David



Johnson in 2008
He's constitutionally qualified!



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