MX-5, Creative Solution for Productivity Improvement

Investment of machine VS MX-5

Investment of machine

166 million KRW investment in the first year. (Depreciation not considered)

MX-5 Installing

Save 66 million KRW every year (Depreciation considered)
23.2 million KRW investment in the first year.
Save totally 92.8 million KRW (Depreciation not considered)

* Calculating Conditions

1. MCT Korean new equipment standard (100 million KRW for every machine, 5 years depreciation), basic installation cost
(20 million KRW for every machine, depreciation considered)
2. Labor cost of one person (40 million KRW per year), 10% of total maintenance cost
3. Cost of MX-5 (5.8 million KRW for every machine, 5 years depreciation)
4. Cost of four MX-5 (23.2 million KRW- 25% productivity), calculating on yearly cost when additionally installing one MCT
5. Unit: Million KRW, neglecting tool cost reduction, under the premise of mass production

* Calculating Conditions

1. MCT Korean new equipment standard (100 million KRW for every machine, 5 years depreciation), basic installation cost (20 million KRW for every machine, depreciation considered)
2. Labor cost of one person (40 million KRW per year), 10% of total maintenance cost
3. Cost of MX-5 (5.8 million KRW for every machine, 5 years depreciation)
4. Cost of four MX-5 (23.2 million KRW- 25% productivity), calculating on yearly cost when additionally installing one MCT
5. Unit: Million KRW, neglecting tool cost reduction, under the premise of mass production

Comparison of Profit before/after MX-5 installation (1 year)

Before Installation

After Installation

* Calculating Conditions

1. No additional cost for labor, equipment and maintenance after installation
2. 30% profit increased through 30% decreased in tool cost and 30% improvement of productivity
3. Under condition of materials offering. The postprocess cost is 10%
4. Under condition of mass production
5. Profit=Total sales figure-Labor Cost - Tool Cost-Maintenance cost- Postprocess Cost

* Calculating Conditions