Abstract

Ensuring profitability is top priority when considering whether to purchase a new piece of equipment. However, whether a furnace purchase will add value is a difficult question to answer. Between complex heat treatment cycles and varying utility consumption, the number of variables that contribute to a value statement can be overwhelming. For heat treaters, this can make it difficult to know what to charge for services to stay competitive and still hit target break-even timelines. The design of the equipment itself can have a dramatic impact on operating cost, which further increases complexity. Using a systematic approach to evaluate purchase decision can protect payback periods and recover value that is lost using more common simplified approaches.

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